ServiceNow

Methodology

ServiceNow's enterprise workflow automation platform generates highly predictable subscription revenue with exceptional visibility from multi-year contracts and sticky customer relationships. Net retention rates and new product adoption provide clear growth drivers. The high-quality SaaS model with expanding use cases makes earnings projections reliable for this enterprise software leader.

Methodology

ServiceNow consistently commands premium PEG ratios reflecting exceptional subscription economics, market leadership in IT service management, and expanding workflow automation opportunities. While expensive on absolute terms, durable growth and competitive moats justify valuations. Compare to ServiceNow's historical range and other premium SaaS companies rather than traditional enterprise software.

Methodology

ServiceNow pays no dividend, making PEGY equal to PEG as management prioritizes R&D investments and strategic acquisitions to expand platform capabilities. Capital allocation focuses entirely on product development and market leadership. For this high-growth SaaS leader, reinvestment in platform expansion matters far more than current shareholder income.