Using the PEG framework with analyst consensus forward EPS growth of 25.0%, ServiceNow, Inc. has a fair value of $104.73 based on NTM EPS (FY2026) of $4.19. The current PEG ratio is 0.75.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
Growth above 25% is capped — hypergrowth may not be sustainable long-term.
| EPS Growth RateForward | 33.0% |
| Adjusted Growth (clamped 8–25%)Clamped | 25.0% |
| Fair P/E | 25.0x |
| NTM EPS (FY2026) | $4.19 |
| Fair Value | $104.73 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $1.67 | — | — |
| FY2026E | $4.19 | +150.9% | 32 |
| FY2027E | $5.05 | +20.5% | 33 |
| FY2028E | $6.17 | +22.2% | 21 |
| FY2029E | $7.20 | +16.7% | 10 |
| FY2030E | $6.95 | -3.5% | 10 |
5Y Forward EPS CAGR: 33.0%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.
| Year | Net Income | EPS | YoY |
|---|
| FY2021 | $230.0M | $0.23 | — |
| FY2022 | $325.0M | $0.32 | +39.1% |
| FY2023 | $1.7B | $1.68 | +425.0% |
| FY2024 | $1.4B | $1.37 | -18.5% |
| FY2025 | $1.7B | $1.67 | +21.9% |
4Y Historical EPS CAGR: 64.2%