ServiceNow Inc (NOW) is slightly undervalued and Shopify Inc (SHOP) is overvalued.
Against our estimates of intrinsic value, NOW trades at the wider discount: a margin of safety of +9%, against -285% for SHOP.
Values as of the 22 Sept 2026 close.
A 10.4x revenue multiple, adjusted for growth and margin, values the shares at $150.34; the price of $137.00 is 9% below that value.
Leak Score 58/100 on 10 of 12 signals
Discounting its cash flows at 15.7% (average of 3 methods) values the shares at $38.39; the price of $147.74 is 285% above that value, and 59% of that value comes from beyond year five.
Leak Score 27/100 on 3 of 12 signals
| Metric | NOW | SHOP |
|---|---|---|
| Verdict | Slightly undervalued | Overvalued |
| Price | $137.00 | $147.74 |
| Intrinsic value | $150.34 | $38.39 |
| Margin of safety | +9% | -285% |
| Leak Score | 58/100 (10/12) | 27/100 (3/12) |
| Market cap | $141.7B | $190.1B |
| Revenue growth, 5 years | 24.1% | 31.6% |
| Operating margin | 13.6% | 17.8% |
| Net margin | 11.3% | 14.5% |
| Return on equity | 14.2% | 15.5% |
| Debt to equity | 0.68 | 0.01 |
| P/E | 85.6x | 99.7x |
| Forward P/E | 27.3x | 59.9x |
| P/B | 11.3x | 15.0x |