PEG Ratio
Higher than 100% of TECHNOLOGY sector peers
Updated 58h ago
Sector Performance
100th percentileNOW
29.27x
Sector Median
1.91x
Sector Avg
7.23x
Deep Analysis
The PEG ratio is 29.27x, meaning investors are paying about 29 times the company’s annual earnings growth rate — a very high price relative to its expected profit expansion.
This figure is far above the TECHNOLOGY sector median of 1.91x, placing NOW in the 100th percentile among peers, indicating it is the most expensive stock in the sector on this metric. The year-over-year change is not available, but the quarter-over-quarter change shows an 11.4% increase, pushing the ratio higher from 26.28x in the prior period. The combination of an extreme level and a rising trend suggests outsized valuation risk, as the stock has become even more richly priced relative to growth expectations. This metric directly supports the overall CAUTIOUS verdict — the elevated PEG ratio signals limited margin of safety and a high bar for future performance.
Frequently Asked Questions
What does the PEG Ratio tell investors about NOW?
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
How is the PEG Ratio calculated?
PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.
How does NOW's PEG Ratio compare to its sector?
NOW's PEG Ratio of 29.27x compares to a TECHNOLOGY sector median of 1.91x, placing it in the 100th percentile.
Who are NOW's closest peers by PEG Ratio?
The closest TECHNOLOGY peers by PEG Ratio include: TXN (1.63x), LRCX (2.19x), CSCO (1.08x), ORCL (0.96x), KLAC (8.25x).
The Formula
P/E Ratio / EPS Growth Rate
Why It Matters
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
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29.27x
Sector Median
1.91x
Sector Avg
7.23x
How NOW's PEG Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.