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    NOW (PSE:NOW) Has Rebounded, Is The Stock Too Expensive?

    Simply Wall St·07/10/2026 19:37:19
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    NOW Corporation (PSE:NOW) has drawn investor interest after recent price moves, with the stock closing at ₱0.55. The company’s mixed short term and longer term returns invite closer attention to its current valuation.

    See our latest analysis for NOW.

    Recent trading has seen NOW Corporation’s 1 day share price return of 3.77% and 7 day share price return of 3.77% sit against a year to date share price decline of 21.43%. The 1 year total shareholder return of 41.03% contrasts with weaker multi year outcomes, suggesting short term momentum has picked up but longer term performance remains pressured.

    If NOW Corporation’s recent swings have you reassessing your watchlist, this could be a good time to broaden your search with 107 top founder-led companies

    Short term gains, longer term drawdowns, and a ₱0.55 share price put NOW Corporation at an interesting crossroads. How does the current valuation stack up for investors weighing the balance of risk and potential reward?

    Preferred Price-to-Earnings of 73.6x: Is it justified?

    With NOW Corporation trading at ₱0.55, the stock is currently valued at a P/E of 73.6x, which screens as expensive against both local peers and the wider Asian IT sector.

    The P/E ratio compares the share price to earnings per share and is a quick way of seeing how much investors are paying for each unit of current profit. For a company like NOW Corporation, which has only recently become profitable and reports ₱13.51m in net income on relatively modest revenue of ₱134.39m, the multiple highlights how much expectation is built into those earnings.

    NOW Corporation’s earnings have declined by an average of 12.9% per year over the past 5 years, and the company’s Return on Equity is a low 0.6%. Set against that backdrop, a 73.6x P/E sits above the peer average of 60.7x and far above the Asian IT industry average of 18.9x. This indicates the market is assigning a materially richer price to NOW’s current earnings than to many comparable IT stocks.

    Compared with other IT companies in the region, this gap in P/E is wide. The fact that NOW is described as expensive relative both to its immediate peers and to the broader Asian IT industry underlines how stretched this earnings multiple is today.

    See what the numbers say about this price — find out in our valuation breakdown.

    Result: Price-to-Earnings of 73.6x (OVERVALUED)

    However, NOW Corporation still faces risks, including high expectations embedded in its 73.6x P/E and a relatively low 0.6% Return on Equity that could be challenged by weaker earnings.

    Find out about the key risks to this NOW narrative.

    Next Steps

    With sentiment around NOW Corporation mixed, this is a moment to look past headlines, review the underlying data, and decide where you stand. To weigh both the potential upside and the concerns flagged by investors, start by checking the 1 key reward and 3 important warning signs

    Looking for more investment ideas beyond NOW Corporation?

    If NOW Corporation has you reassessing your portfolio, do not stop here. Broadening your watchlist with new ideas can help you spot opportunities others miss.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.