$NOW

Explicit claim • strong conviction • basis: growth vs multiple

But with the stock down as much as it is, it's now trading at the lowest valuation metrics that I've ever seen for this company at even a PEG of less than one, which is over 24% cheaper than the sector median.

Explicit claim • strong conviction • basis: multiple relative

The first and biggest reason is valuation. Its priced like a growth and with AI potentially disrupting SAAS any slowdown in growth from AI or competition will hit the stock hard.

Explicit claim • strong conviction • basis: multiple relative

Look at Service Now against Service Now itself trading at 31 times forward earnings versus 5 years sitting at 60. That's a 47% discount. And then if consensus is right, that falls around 25 times based on 2027 numbers down to 21 on 28 and then 18 on 2029. And my cash flow valuation is even more interesting. I get an intrinsic price of $170 against a current share price of $127, indicating a 25% margin of safety.

Explicit claim • strong conviction • basis: multiple relative

But if you look at it, even with how much it has dropped very quickly, Service Now was trading at $240 per share. It has lost 61% of its value. 61. Let me ask you, what do you think the P ratio is? ... When you look at the Service Now P ratio, it's still at 53.