` Comparison: NOW, MSFT - Alpha Spread

NOW
vs
MSFT

Over the past 12 months, NOW has underperformed MSFT, delivering a return of +2% compared to the MSFT's +24% growth.

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NOW
MSFT
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Ranked results with clear takeaways.
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Valuation
Growth
Profitability
Solvency
Comparing Valuation
Running a multi-layered valuation analysis to compare how attractive each stock is.
Comparing Growth
Financial growth, forecasts, volatility, and historical drawdowns.
Comparing Profitability
Margins, returns on capital, and the consistency of profitability.
Comparing Solvency
Debt levels, liquidity, interest coverage, and bankruptcy risk.
Summarizing...
We need a little more time to summarize the results

Valuation Comparison

NOW Intrinsic Value
420.061 USD
Overvaluation 51%
Intrinsic Value
Price
MSFT Intrinsic Value
383.851 USD
Overvaluation 27%
Intrinsic Value
Price
Company Last Price Intrinsic Value DCF Value Relative Value Wall St Target
ServiceNow Inc
NYSE:NOW
849.125 USD
Microsoft Corp
NASDAQ:MSFT
522.605 USD
Valuation Scenario:
Bear Case
Base Case
Bull Case

Growth Comparison

Growth Over Time
NOW, MSFT

NOW
MSFT
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Revenue
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Company LTM Historical Growth Growth Streak % Positive Years Max Drawdown Volatility Forecasted Growth
3 Years 5 Years 10 Years 1 Year 3 Years
ServiceNow Inc
Revenue
Microsoft Corp
Revenue

All metrics are calculated based on data from the last 10 years.

Profitability Comparison

Free Cash Flow
NOW, MSFT

NOW
MSFT
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Free Cash Flow
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Company LTM Average Historical Growth FCF Margin Conversion
3 Years 5 Years 3 Years 5 Years 10 Years
ServiceNow Inc
NYSE:NOW
Microsoft Corp
NASDAQ:MSFT
What is Free Cash Flow?

Gross Margin

NOW
78.5%
MSFT
68.8%
LTM 3Y Avg 5Y Avg 10Y Avg
ServiceNow Inc
Microsoft Corp

Operating Margin

NOW
13.3%
MSFT
45.6%
LTM 3Y Avg 5Y Avg 10Y Avg
ServiceNow Inc
Microsoft Corp

Net Margin

NOW
13.8%
MSFT
36.2%
LTM 3Y Avg 5Y Avg 10Y Avg
ServiceNow Inc
Microsoft Corp

FCF Margin

NOW
31.6%
MSFT
25.4%
LTM 3Y Avg 5Y Avg 10Y Avg
ServiceNow Inc
Microsoft Corp

ROE

NOW
17%
MSFT
33.3%
LTM 3Y Avg 5Y Avg 10Y Avg
ServiceNow Inc
Microsoft Corp

ROA

NOW
8.3%
MSFT
18%
LTM 3Y Avg 5Y Avg 10Y Avg
ServiceNow Inc
Microsoft Corp

ROIC

NOW
9.4%
MSFT
23.2%
LTM 3Y Avg 5Y Avg 10Y Avg
ServiceNow Inc
Microsoft Corp

ROCE

NOW
13%
MSFT
29.7%
LTM 3Y Avg 5Y Avg 10Y Avg
ServiceNow Inc
Microsoft Corp

Solvency Comparison

Balance Sheet Comparison

Stocks Performance

Stocks Performance
NOW, MSFT

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Performance Gap
NOW, MSFT

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NOW
MSFT
Difference
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Performance By Year
NOW, MSFT

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NOW
MSFT
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