NOW - Embedded Expectations Analysis - 2021 03 09
ServiceNow, Inc. (NOW:USA) currently trades well above corporate averages relative to UAFRS-based (Uniform) earnings, with a 120.7x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may have concerns about their vaccine administration management application, M&A transactions, and growth opportunitiesSpecifically, management may be overstating the potential of their Element AI acquisition and the capabilities and innovativeness of their vaccine administration management applications. Also, management may lack confidence in their ability to find accretive M&A opportunities for their customers and shareholders, capitalize on growth opportunities in ITSM Pro, and leverage their virtual agent to guide clients through subscription processes. Finally, they may have be exaggerating their ability to help clients manage people in the modern work environment and the strength of their brand across different industries and geographies
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.