NOWNEUTRAL

NOW P/E Ratio Analysis

61.2x

Higher than 91% of TECHNOLOGY sector peers

Updated 77h ago·SEC filings & market data

Key Takeaway

The P/E ratio of 61.2x means investors pay $61.20 for every $1 of the company's trailing earnings — a high price relative to typical stock valuations.

Sector Performance

91th percentile

NOW

61.2x

Sector Median

39.5x

Sector Avg

41.3x

Prior Period

58.5x(Jul 2026)

↓ Declining

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Deep Analysis

The P/E ratio of 61.2x means investors pay $61.20 for every $1 of the company's trailing earnings — a high price relative to typical stock valuations.

This is well above the sector median of 39.5x, placing the stock in the 91st percentile among technology peers, so it is pricier than about 91% of them. The year-over-year trend is not available, but the ratio rose 4.5% quarter-over-quarter from 58.5x to 61.2x, indicating recent expansion in valuation. A high and rising P/E invites risk: the stock price already reflects strong growth expectations, leaving less margin for error if results disappoint. This does not by itself contradict the neutral verdict, but it does temper any upside view because the expensive multiple leaves little room for upside surprises. Overall, the metric supports a neutral stance: the high multiple warrants caution, while no clear long-term trend direction is established.

Frequently Asked Questions

What does the P/E Ratio tell investors about NOW?

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.

How is the P/E Ratio calculated?

P/E Ratio is calculated as: Price / EPS.

How does NOW's P/E Ratio compare to its sector?

NOW's P/E Ratio of 61.2x compares to a TECHNOLOGY sector median of 39.5x, placing it in the 91th percentile.

Who are NOW's closest peers by P/E Ratio?

The closest TECHNOLOGY peers by P/E Ratio include: CSCO (37.1x), TXN (42.0x), HPE (43.8x), DELL (34.2x), LRCX (52.7x).

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The Formula

Price / EPS

Why It Matters

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.