Evaluation Date: 2026-01-14 | ← Back to All Stock Evaluations
Disclaimer: This analysis is for educational purposes only and does not constitute investment advice. Always conduct your own due diligence and consult a qualified financial advisor before making investment decisions. Past performance does not guarantee future results.
Key Takeaways: Is NOW a Quality Investment?
This section provides a scannable summary for quick reference.
- Verdict: 🟡 CAUTION — Score: 143/210 (68.1%)
- Moat Strength: Strong — Dominant 44% ITSM market share with 98% customer renewal rate and high switching costs
- Financial Health: Good — $5.4B cash, low debt (Debt/Equity 13%), but ROIC (~8%) below cost of capital
- Valuation: Overvalued — P/E 86x vs 5yr avg 218x (improved), P/FCF ~36x, premium pricing for growth
- Key Risk: Recent $12B M&A spree raises execution risk; ROIC destruction concerns as company grows through acquisitions
This evaluation uses the Charlie Munger Quality Rubric framework analyzing management, moat, financials, and valuation across 8 dimensions.