Competitive Comparison

ServiceNow vs. Salesforce vs. Workday

Three enterprise workflow-automation platforms, one held, two watched — compared on growth-adjusted valuation in a software category increasingly selling its own AI story.

Metric	ServiceNow (NOW)	Salesforce (CRM)	Workday (WDAY)
PEG ratio	0.60	0.32	0.55
EBITDA	$762M (quarterly)	$9.5B (FY26)	n/a (EV/EBITDA 19.55–22.84x)
Capex (TTM/FY)	$804.00M	$594.0M (FY26)	n/a

PEG ratio, compared

NOW

0.60

CRM

0.32

WDAY

0.55

Same PEG ratio figures as the table above, plotted for a direct read. Bold = held in this book.

Market cap, P/E, PEG, EV/EBITDA, and capex sourced via public filings and financial-data aggregators (GuruFocus, StockAnalysis, company earnings releases), as of July 2026. PEG ratio sourced primarily from GuruFocus where available; different providers use different growth-rate assumptions, so figures elsewhere for the same stock can vary by several multiples. Gold-highlighted column(s) indicate the name(s) actually held in this book.

Why ServiceNow over Salesforce and Workday

On PEG alone, Salesforce (0.32) actually screens cheaper than ServiceNow (0.60), which is worth being honest about rather than papering over. I hold ServiceNow specifically for the switching-cost mechanism: once a company's IT service management runs on it, expanding into HR, security, and AI-driven workflow modules is a genuinely sticky wallet-share expansion within an existing customer base, distinct from Salesforce's broader but more competitive CRM category. Workday, cheapest of the three on PEG at 0.55, is a real candidate I'm watching rather than holding — its narrower HR/finance focus gives it less room for the kind of multi-module expansion that's core to the ServiceNow thesis.