EV/EBITDA
Higher than 57% of TECHNOLOGY sector peers
Updated 57h ago
Sector Performance
57th percentileNOW
36.5x
Sector Median
34.6x
Sector Avg
38.9x
Deep Analysis
EV/EBITDA measures a company's total value (including debt) relative to its earnings before interest, taxes, depreciation, and amortization — a higher multiple often suggests the stock is more expensive than its profit-generating power would justify.
At 36.5x, NOW’s multiple sits above the sector median of 34.6x, placing it in the 57th percentile among technology peers — meaning it is valued more richly than a majority of comparable firms. No trend data is available, as the year-over-year change, quarter-over-quarter change, and prior eight quarters are all listed as N/A, so there is no basis to assess whether the valuation is rising or falling. The combination of a high EV/EBITDA level with no observable trend introduces uncertainty: the stock carries a premium price tag, but without movement history, it is unclear if that premium is expanding or contracting. This lack of directional information makes it harder to judge whether the current valuation is a buying opportunity or a risk of overpayment. The elevated multiple relative to the sector median supports the overall CAUTIOUS verdict, as it indicates the stock trades at a level that may offer less margin of safety.
Frequently Asked Questions
What does the EV/EBITDA tell investors about NOW?
A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.
How is the EV/EBITDA calculated?
EV/EBITDA is calculated as: Enterprise Value / EBITDA.
How does NOW's EV/EBITDA compare to its sector?
NOW's EV/EBITDA of 36.5x compares to a TECHNOLOGY sector median of 34.6x, placing it in the 57th percentile.
Who are NOW's closest peers by EV/EBITDA?
The closest TECHNOLOGY peers by EV/EBITDA include: TXN (32.7x), CSCO (28.2x), KLAC (51.6x), ORCL (16.6x), MU (15.2x).
The Formula
Enterprise Value / EBITDA
Why It Matters
A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.
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36.5x
Sector Median
34.6x
Sector Avg
38.9x
How NOW's EV/EBITDA compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.