NOW - Embedded Expectations Analysis - 2020 05 27
ServiceNow, Inc. (NOW:USA) currently trades above recent averages relative to UAFRS-based (Uniform) Earnings, with an 82.0x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may be concerned about the NOW platform, growth opportunities, and their capabilitiesSpecifically, management may be exaggerating their ability to scale ServiceNow, get to the root causes of client problems, and execute their go-to-market strategy. In addition, they may lack confidence in their ability to build applications and re-platform companies to the NOW platform on tight timelines. Furthermore, they may be overstating the potential of digital transformation opportunities and their ability to provide IT services to clients. Moreover, they may have concerns about the progress of the NOW platform's natural language capability initiatives, and they may lack confidence in their ability to make businesses better through end-to-end workflow improvements and assist CIOs in addressing employee and customer needs
ServiceNow provides enterprise cloud computing services that define, structure, manage and automate digital workflows for global enterprises. The company markets its services to enterprises in a variety of industries, including consumer products, education, financial services, government, health care, information technology (IT) services and technology. The company sells its subscription services through direct sales and, to a lesser extent, through indirect channel sales. The company also provides a portfolio of personnel and other services, both directly and through its network of partners. The company's products include IT service management, IT operations management, IT business management, and security operations.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.