The WACC of ServiceNow Inc (NOW) is 8.5%.
Range | Selected | |
Cost of equity | 6.8% - 10.3% | 8.55% |
Tax rate | 19.8% - 41.0% | 30.4% |
Cost of debt | 4.0% - 4.5% | 4.25% |
WACC | 6.8% - 10.3% | 8.5% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.63 | 0.97 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.8% | 10.3% |
Tax rate | 19.8% | 41.0% |
Debt/Equity ratio | 0.01 | 0.01 |
Cost of debt | 4.0% | 4.5% |
After-tax WACC | 6.8% | 10.3% |
Selected WACC | 8.5% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
NOW | ServiceNow Inc | 0.01 | 1.23 | 1.23 |
ABST.TO | Absolute Software Corp | 0.49 | 0.34 | 0.25 |
CYRN | Cyren Ltd | 2.16 | 0.72 | 0.26 |
DTSS | Datasea Inc | 0.08 | -0.93 | -0.88 |
FALC | FalconStor Software Inc | 0.24 | -0.48 | -0.4 |
FTNT | Fortinet Inc | 0.01 | 1.29 | 1.28 |
NLOK | NortonLifeLock Inc | 0.26 | 0.7 | 0.58 |
PANW | Palo Alto Networks Inc | 0.01 | 1.24 | 1.23 |
PFPT | Proofpoint Inc | 0.08 | 1.2 | 1.13 |
VMW | VMware Inc | 0.17 | 0.95 | 0.84 |
Low | High | |
Unlevered beta | 0.45 | 0.96 |
Relevered beta | 0.45 | 0.96 |
Adjusted relevered beta | 0.63 | 0.97 |