NOW PEG Ratio Analysis
Higher than 100% of TECHNOLOGY sector peers
Updated 1013h ago·SEC filings & market data
Key Takeaway
The PEG ratio (price-to-earnings divided by earnings growth rate) is 29.27x, meaning the stock trades at 29 times its annual earnings for each percentage point of expected earnings growth — a historically high multiple.
Sector Performance
100th percentileNOW
29.27x
Sector Median
0.87x
Sector Avg
4.34x
Prior Period
26.28x(May 2026)
Deep Analysis
The PEG ratio (price-to-earnings divided by earnings growth rate) is 29.27x, meaning the stock trades at 29 times its annual earnings for each percentage point of expected earnings growth — a historically high multiple.
Among sector peers, the median PEG is 1.63x, placing NOW in the 100th percentile, the most expensive in its peer group. Trend data is unavailable: the year-over-year change, quarter-over-quarter change, and all prior eight quarters are listed as N/A, with only the current single observation. Without a trend, the extreme level relative to peers indicates a high valuation risk, as any slowdown in growth could compress the multiple. This metric directly contradicts a cautious verdict — the PEG ratio level alone signals speculative pricing in a sector where the median is 18 times lower. However, the overall CAUTIOUS verdict is supported because the stock is priced far above peers with no trend to confirm improving fundamentals.
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 0.87x, placing it in the 100th percentile.
Who are NOW's closest peers by PEG Ratio?
The closest TECHNOLOGY peers by PEG Ratio include: HPQ (0.87x), TXN (0.79x), ORCL (0.76x), CSCO (1.05x), HPE (0.27x).
Learn More About PEG Ratio
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
0.87x
Sector Avg
4.34x
How NOW's PEG Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.