SHOP Valuation

Shopify Inc

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166.430

+5.15(3.193%)1D

Overview
Forecast
Valuation
Earnings

SHOP Relative Valuation

SHOP's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, SHOP is overvalued; if below, it's undervalued.

Historical Valuation

Shopify Inc (SHOP) is now in the Undervalued zone, suggesting that its current forward PS ratio of 0.00 is considered Undervalued compared with the five-year average of -33.38. The fair price of Shopify Inc (SHOP) is between +Inf to +Inf according to relative valuation methord. Compared to the current price of 164.94 USD , Shopify Inc is Undervalued By Fair.

Relative Value

Fair Zone

+Inf-+Inf

Current Price：164.94

Fair

Undervalued

103.12

Trailing

Forward

98.27

EV/EBITDA

Shopify Inc. (SHOP) has a current EV/EBITDA of 98.27. The 5-year average EV/EBITDA is 15.78. The thresholds are as follows: Strongly Undervalued below -951.64, Undervalued between -951.64 and -467.93, Fairly Valued between 499.48 and -467.93, Overvalued between 499.48 and 983.19, and Strongly Overvalued above 983.19. The current Forward EV/EBITDA of 98.27 falls within the Historic Trend Line -Fairly Valued range.

100.08

EV/EBIT

Shopify Inc. (SHOP) has a current EV/EBIT of 100.08. The 5-year average EV/EBIT is 99.34. The thresholds are as follows: Strongly Undervalued below -606.10, Undervalued between -606.10 and -253.38, Fairly Valued between 452.06 and -253.38, Overvalued between 452.06 and 804.78, and Strongly Overvalued above 804.78. The current Forward EV/EBIT of 100.08 falls within the Historic Trend Line -Fairly Valued range.

17.26

Shopify Inc. (SHOP) has a current PS of 17.26. The 5-year average PS is 16.61. The thresholds are as follows: Strongly Undervalued below -4.23, Undervalued between -4.23 and 6.19, Fairly Valued between 27.03 and 6.19, Overvalued between 27.03 and 37.45, and Strongly Overvalued above 37.45. The current Forward PS of 17.26 falls within the Historic Trend Line -Fairly Valued range.

93.68

P/OCF

Shopify Inc. (SHOP) has a current P/OCF of 93.68. The 5-year average P/OCF is 88.56. The thresholds are as follows: Strongly Undervalued below -293.14, Undervalued between -293.14 and -102.29, Fairly Valued between 279.42 and -102.29, Overvalued between 279.42 and 470.27, and Strongly Overvalued above 470.27. The current Forward P/OCF of 93.68 falls within the Historic Trend Line -Fairly Valued range.

95.21

P/FCF

Shopify Inc. (SHOP) has a current P/FCF of 95.21. The 5-year average P/FCF is 73.82. The thresholds are as follows: Strongly Undervalued below -350.27, Undervalued between -350.27 and -138.22, Fairly Valued between 285.86 and -138.22, Overvalued between 285.86 and 497.91, and Strongly Overvalued above 497.91. The current Forward P/FCF of 95.21 falls within the Historic Trend Line -Fairly Valued range.

Shopify Inc (SHOP) has a current Price-to-Book (P/B) ratio of 17.28. Compared to its 3-year average P/B ratio of 10.33 , the current P/B ratio is approximately 67.32% higher. Relative to its 5-year average P/B ratio of 11.89, the current P/B ratio is about 45.43% higher. Shopify Inc (SHOP) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 0.72%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 0.57% , the current FCF yield is about -100.00% lower.

17.28

P/B

Median3y

10.33

Median5y

11.89

0.85

FCF Yield

Median3y

0.72

Median5y

0.57

Competitors Valuation Multiple

The average P/S ratio for SHOP's competitors is 6.29, providing a benchmark for relative valuation. Shopify Inc Corp (SHOP) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 31.05%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of SHOP increased by 106.21% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 8.36 to 33.81.

The secondary factor is the Revenue Growth, contributed 31.05%to the performance.

Overall, the performance of SHOP in the past 1 year is driven by Margin Expansion. Which is more sustainable.

31.05%

2.05B → 2.68B

Revenue Growth

304.43%

8.36 → 33.81

Margin Expansion

-229.27%

-69.85 → 90.30

P/E Change

106.21%