Decagon Sale Talks Spotlight ServiceNow (NOW) Amid Attractive Va

GuruFocus News 10/13/2026 12:55 On October 13, 2026, Decagon, an AI agent startup valued at $4.5 billion, is reportedly in preliminary discussions about a potential sale involving ServiceNow Inc (NYSE: NOW) and other interested firms. Decagon has engaged a financial institution to explore acquisition interest, with plans for a new funding round if a sale does not materialize.

GF ValueTM indicates ServiceNow is significantly undervalued at $244.60 versus the current price of $138.51, implying a 43.4% margin of safety. GF ScoreTM of 88/100 reflects robust overall quality, driven by top-tier growth and momentum metrics. Insider activity shows net selling over the past 12 months, with $9.3 million sold versus $3.0 million bought, while 13 prominent gurus hold NOW shares, with 10 adding and 6 trimming recently.

What's Behind the News? The news that ServiceNow is among the potential acquirers of Decagon highlights the company’s strategic interest in expanding its AI capabilities. Decagon’s recent $250 million funding round earlier this year significantly boosted its valuation to $4.5 billion, underscoring the growing importance of autonomous AI agents in enterprise software.

ServiceNow’s Now Platform already integrates AI-driven workflow automation, and acquiring Decagon could accelerate its leadership in AI-powered business transformation. ServiceNow Inc, with a market capitalization of $143.22 billion, operates in the technology sector, specifically the software industry.

It provides a cloud platform that automates and orchestrates enterprise workflows across IT service management, customer service, HR, security operations, and industry-specific processes. The company’s AI monetization centers on generative AI capabilities and autonomous AI agents sold through premium subscriptions.

Founded in 2004 and headquartered in Santa Clara, California, ServiceNow generates over $10 billion in annual subscription revenue and serves most Fortune 500 companies. Is NOW Overvalued or Undervalued? According to GuruFocus’ proprietary GF ValueTM metric, ServiceNow is significantly undervalued.

The GF ValueTM stands at $244.60 compared to the current share price of $138.51, indicating a substantial 43.4% discount. This margin of safety suggests that the market price does not fully reflect the company’s intrinsic worth based on its historical trading multiples, growth prospects, and future earnings potential.

Investors looking for value in a high-growth technology stock may find this gap noteworthy. Examining valuation multiples, ServiceNow’s trailing twelve months (TTM) price-to-earnings (P/E) ratio is 86.52x, which is below its 5-year median P/E of 133.03x. This relative contraction in P/E multiples further supports the undervaluation thesis, implying that the market is pricing the stock more conservatively than in recent years despite solid growth fundamentals.

For more on GF ValueTM, visit GF ValueTM . What Does NOW's GF ScoreTM Tell Us? The GF ScoreTM is a composite measure that evaluates a company’s overall financial health, profitability, growth, valuation, and momentum to provide a holistic quality rating.

ServiceNow’s GF ScoreTM of 88/100 places it among the higher-quality growth stocks, reflecting strong operational execution and market positioning. Metric Rating GF ScoreTM 88 Financial Strength 7/10 Profitability 7/10 Growth 10/10 Valuation 4/10 Momentum 10/10 ServiceNow’s standout sub-ranks are in Growth and Momentum, both scoring a perfect 10/10, highlighting its rapid revenue and earnings expansion alongside strong stock price trends.

Financial Strength and Profitability are solid but not exceptional, each rated 7/10, indicating stable operations but some room for improvement. Valuation ranks lower at 4/10, consistent with the current market discount relative to intrinsic value. Overall, the GF ScoreTM paints a picture of a high-quality growth company trading below its intrinsic worth.

For further details, see the NOW stock page . What Are Gurus and Insiders Doing with NOW? ServiceNow’s ownership profile reveals meaningful activity from institutional gurus and company insiders.

Currently, 13 prominent gurus hold NOW shares, with 10 having added to their positions and 6 trimming stakes in recent quarters. This net positive accumulation by gurus suggests confidence in the company’s long-term prospects, a signal not available from other data providers like Simply Wall St or Morningstar.

Conversely, insider activity over the past 12 months shows net selling, with insiders offloading $9.3 million worth of shares while purchasing $3.0 million. This insider selling could reflect personal liquidity needs or portfolio rebalancing rather than a negative outlook, but it is a factor investors should monitor.

What This Means for Investors ServiceNow’s involvement in potential acquisition talks for Decagon underscores its strategic focus on AI-driven enterprise solutions, a growth area with significant market opportunity. The company’s GF ValueTM indicates it is trading at a meaningful discount to intrinsic value, offering a margin of safety for investors who prioritize quality growth stocks.

The strong GF ScoreTM driven by exceptional growth and momentum metrics reinforces the company’s robust business model and execution. Meanwhile, the mixed insider activity balanced by positive guru accumulation provides a nuanced ownership signal that investors should weigh alongside valuation and fundamentals.

For those interested in a deeper dive into ServiceNow’s financial and operational profile, visit the NOW stock page or explore opportunities through the GuruFocus Stock Screener . Frequently Asked Questions What is NOW's GF ScoreTM? NOW’s GF ScoreTM is 88 out of 100, reflecting a high-quality company with strong growth and momentum, solid profitability, and financial strength.

Is NOW overvalued or undervalued? NOW is significantly undervalued according to GF ValueTM, trading at $138.51 versus an intrinsic value estimate of $244.60, indicating a 43.4% undervaluation. What is NOW's P/E ratio compared to historical?

NOW’s trailing P/E ratio is 86.52x, which is below its 5-year median P/E of 133.03x, suggesting the stock is trading at a relatively cheaper valuation compared to its historical norm. This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting.

This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected] . Disclosures I/We may personally own shares in some of the companies mentioned above.

However, those positions are not material to either the company or to my/our portfolios.