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Servicenow Inc

NOWAbove valueExpectations · fair

Held by 6 superinvestors.

Price$127.00
Holders6
Total value$864.1M

SEC 10-K · fundamentals

Business quality

as of 2025-12-31

Valuation basis: trailing twelve months to 2026-06-30 — latest 10-K plus unaudited 10-Q filings.

Revenue growth
+20.9%
Net margin
13.2%
ROE
13.5%
FCF margin
34.5%
Revenue $4.52B → $13.28B · 6y
What makes a business high quality

Valuation · value band

Above fair value

$22/ sh · growth-anchored intrinsic value
margin of safety
fair value
above fair value
$127
cheaperpricier

Zero-growth floor

$12

Central IV

$22

Optimistic top

$27

Servicenow Inc (NOW): A conservative value band $12–$27 / sh (zero-growth floor to growth-capped optimistic top); central read about $22. Today’s price sits above that band (price $127 as of 2026-08-25).

The middle figure is the main read. The right end is the optimistic case under the same conservative caps — not an absolute ceiling.

Revenue growth 5% (lower of historical trend and fundamental cap, capped by moat) · moat 20 yr · discount 10.7% · Zero-growth downside $12

Price as of 2026-08-25 · yahoo · DGS10 4.7% @ 2026-08-24.

Method & numbers

Buybacks over the years shown roughly only offset stock-based-compensation dilution — read them as maintaining the share count, not a net return of capital.

Model cautions

  • Owner-earnings yield diverges sharply from the 10-year Treasury (over 300 bps).

A conservative intrinsic-value band (zero-growth floor to growth-capped DCF) plus a tangible asset floor — not investment advice, not a buy/sell signal, and not a price target.

Owner-earnings DCF $14.47 – $26.79 · Greenwald zero-growth $17.01 · zero-growth base $17.01 · reproduction $11.31

Moat Franchise (via earnings growth) · terminal value 22% of present value · owner-earnings yield 1% vs 10Y 4.7%.

Graham earnings-power value (normalized NOPAT)$11.63 – $15.30 / sh

Normalized NOPAT = average operating margin over the years shown × latest-year revenue × (1 − normalized tax); then + D&A − maintenance capex (write A). Unlevered (pre-interest, attributable to all capital). Capitalized at the 9–11% rate band (read as a WACC proxy). Enterprise → equity bridge applied: + cash − total debt.

Years: TTM 2026-06-30, 2024, 2023, 2022, 2021

v1 simplifications: Maintenance capex (degraded) deducted in full cash (write A): EPV = (NOPAT + D&A − maintenance capex) / WACC; no tax shield on the capex term. Maintenance-capex methods diverge by 320% (> 50%); estimate is degraded. Share-based compensation is left as a real expense (not added back).

Buffett owner-earnings value$13.94 – $17.01 / sh

Owner earnings = average net income + average D&A − maintenance capex (zero-growth floor; no ΔNWC). Levered (starts from net income, already after interest — an equity-holder stream). Capitalized at the 9.1–11.1% band (9–11% base + 0.1pp leverage premium). No enterprise→equity bridge: the capitalized result is already equity value (subtracting debt would double-count interest).

Years: TTM 2026-06-30, 2024, 2023, 2022, 2021

v1 simplifications: Owner earnings = net income + D&A − maintenance capex (degraded); the working-capital change is excluded (maintenance ΔNWC ≈ 0; growth ΔNWC is carried in growth value, not double-counted). Maintenance-capex methods diverge by 320% (> 50%); estimate is degraded. One-time items are not separately normalized (multi-year averaging smooths them partially). Share-based compensation is left as a real expense (not added back); see the SBC/OE disclosure. Capitalized at the 9–11% base band plus a 0.1pp leverage premium (cost of equity rises with leverage — MM Proposition II). Net debt is about 3.1 years of owner earnings, adding 0.1pp of cost-of-equity risk premium.

Reproduction value = tangible net assets $-1.10B + capitalized R&D $5.99B（FY 2026, 2024, 2023, 2022） = $11.31 / sh. Reproduction value = intangible-inclusive net reproduction (tangible net assets + acquired-intangible reset proxy + capitalized R&D), ÷ diluted shares; tangible net assets alone are negative for this asset-light franchise.

Moat reading: Franchise test compares earnings power (EPV) against reproduction value (tangible net assets + capitalized R&D). EPV well above reproduction value signals a moat; near it, a commodity; below it, value destruction. A directional reading, not a verdict.

Assumes a wide moat · competitive-advantage period ≈ 20 years (earnings intact, ROIC stable over history).

Growth value gated to zero — franchise via earnings-growth bypass; growth credit stays in the owner-earnings DCF only.

Window TTM 2026-06-30, FY 2024, 2023, 2022, 2021 · discount band 9%–11% · normalized tax 0% (Average effective tax rate over 5 year(s), capped at the statutory 21%.) · diluted shares.

Baseline 9%–11%, net debt ≈ 3.1 years of owner earnings → +0.1pp cost-of-equity premium → effective 9.1%–11.1%.

Owner-earnings DCF: growth g₁ 5% · OE FY TTM 2026-06-30, 2024, 2023, 2022, 2021 · Discount band: 9.27%–12.07% (DGS10 +4.5% to a 12% strict end, each +0.07pp for leverage premium, as of 2026-08-24). No enterprise→equity bridge: owner earnings already flow to shareholders (post-interest), so no net cash is added and no debt subtracted — matching the engine owner-earnings lamp.

Valuation basis: trailing twelve months to 2026-06-30 — latest 10-K plus unaudited 10-Q filings.

What the price is betting

Today's price pencils in about 26.4% a year in owner-earnings for the next few years. Revenue actually grew 23.8% a year.

About its own track record.

Roughly, the price needs its historical revenue growth to run about 15 more years to hold up.

How to read intrinsic value

SEC 13F · holders

Superinvestors Holding This Security

6 holders · $864.1M combined · this quarter +1 opened / -0 exited

This quarter1 opened3 added2 trimmed
Holders 3 → 6 · last 8q

SEC 13F · notes

Written summary

Servicenow Inc (NOW) is held by 6 of the superinvestors tracked on Compounder, with a combined $864.1M in reported 13F value. The largest position belongs to Polen Capital, where it makes up 4.6% of the portfolio.

Other notable holders by value include Chuck Akre (2.4% of its book), Chase Coleman (0.4% of its book) and Ray Dalio (0.3% of its book).

Over the latest quarter, 1 of the tracked filers opened a new position in NOW, 3 added to existing ones, 2 trimmed, and 0 sold out entirely.

Holder counts and values reflect the most recent SEC Form 13F filings, through the quarter ended 2026-06-30. Source: SEC EDGAR. A 13F shows only long US-listed positions and can lag the real portfolio by up to 45 days, so this is disclosed long ownership, not a complete picture.

How to read a 13F

SEC 13F · co-ownership

Also held by these investors

Investors holding Servicenow Inc (NOW) also commonly hold →

NOW's price is not below its conservative value band. See current strike-zone stocks

Also on

Sources· SEC EDGAR 13F as of 2026-06-30 · filed 2026-08-14

Educational data only — not investment advice. 13F positions are self-reported and can lag up to 45 days.

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