ServiceNow (NOW) in Focus as Bernstein Calls It the Cheapest Large-Cap Software Name

Key Highlights

• Deeming NOW as the “cheapest large-cap software stock” after selloff, the firm sees the stock’s valuation as overly discounted compared to fundamentals and peers.
• “The ‘cheapest’ large cap software stock?!?
• This is a title we didn’t think we’d ever write for a business we labeled as ‘the next Microsoft’.
• Yesterday we defended the potential Armis M&A that sent the stock down ~11%.
• Today we are reflecting on how cheap the stock is — ServiceNow’s Price to 3-year-out FCF (minus SBC) vs.