Servicenow stock price remained firm at $746

ServiceNow stock price remained firm at $746.77 even as tech indexes corrected. The company’s diversification into AI-based service models may help sustain growth during broader market volatility, according to sector analysts. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price. As of Dec. 31, 2024, ServiceNow had $5.8 billion in cash, offset by $1.5 billion in debt, resulting in a net cash position of $4.3 billion. Gross leverage sits at about 1 times trailing EBITDA, which allows for flexibility should the environment worsen. ServiceNow stock price rose to $750.19 following news of a major Fortune 500 client contract. This contract could increase annual recurring revenue substantially, influencing medium-term valuation models toward a bullish bias. Momentum indicators point to continued strength in the near term.