NOW 0.00%↑ is in the same SaaS space as stocks like CRM 0.00%↑ and ADBE 0.00%↑. However, the discrepancy between actual value and market perceptions is the game we play to make truly large sums of money.
For this analysis, I used an un-levered beta of 1.23 (internet application and software industry) which was re-levered to 1.16 using the Hamada equation. In addition, I also used an ERP of 4.5% (for US equities), an effective tax rate of 26.15%, and a risk free rate of 3.76%.
Since the interest expenses are not available for NOW 0.00%↑ on Stock Analysis, I used the 2030 bond rate for NOW 0.00%↑ which is 4.73% as of the writing of this analysis. Now with those parameters out of the way, here is the company guidance.
As you can see for their FY 26 guidance, management describes full year guidance for subscription revenues only not the professional/other revenues. Based on this, I used a 22.25% revenue growth rate for both subscription and other revenues as an approximation for Year 1.
