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SERVICENOW, INC. (NOW) — WACC Analysis

WACC Breakdown

SERVICENOW, INC. (NOW) has a weighted average cost of capital (WACC) of 9.8%. The cost of equity is 10.2%, derived from a beta of 1.44 and a risk-free rate of 4.7%. The after-tax cost of debt is 1.6%. The capital structure is 95.2% equity and 4.8% debt.

Interpretation

A WACC of 9.8% is moderate, reflecting the market's balanced risk assessment of SERVICENOW, INC..

Investors can compare NOW's WACC of 9.8% against industry peers to gauge its relative financing costs. A beta of 1.44 reflects the stock's volatility relative to the broader market.

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VALUATION

NOW WACC: 9.79% for SERVICENOW, INC.

Current inputs imply a 10.20% cost of equity and a 2.00% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

SERVICENOW, INC. Common Stock (NOW) WACC Results
Weighted Average Cost of Capital
9.79%
Cost of Equity
10.20%
Risk-Free Rate4.73%
Beta1.44
Market Risk Premium4.23%
Cost of Debt
1.58%
Pre-Tax Cost of Debt2.00%
Tax Rate21.00%
Tax Shield0.42%
Capital Structure
Equity: 95.22%($149.61B)
Debt: 4.78%($7517.00M)
Equity Component
9.71%
95.22% × 10.20%
Debt Component
0.08%
4.78% × 1.58%

SERVICENOW, INC. (NOW) WACC in context

SERVICENOW, INC. (NOW) currently screens with an estimated WACC of 9.79%. That blends a 10.20% cost of equity, a 2.00% pre-tax cost of debt, and a 95.22% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What NOW WACC implies

A 9.79% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates NOW

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.44 and equity accounts for 95.22% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.