Historical Valuation
Shopify Inc (SHOP) is now in the Fair zone, suggesting that its current forward PS ratio of 15.34 is considered Fairly compared with the five-year average of -42.59. The fair price of Shopify Inc (SHOP) is between 66.89 to 230.43 according to relative valuation methord.
Relative Value
Fair Zone
66.89-230.43
Current Price：165.83
Fair
P/E
EV/EBITDA
EV/EBIT
P/S
P/OCF
P/FCF
1Y
3Y
5Y
Trailing
Forward
Shopify Inc (SHOP) has a current Price-to-Book (P/B) ratio of 16.35. Compared to its 3-year average P/B ratio of 11.29 , the current P/B ratio is approximately 44.77% higher. Relative to its 5-year average P/B ratio of 11.66, the current P/B ratio is about 40.19% higher. Shopify Inc (SHOP) has a Forward Free Cash Flow (FCF) yield of approximately 0.93%. Compared to its 3-year average FCF yield of 0.80%, the current FCF yield is approximately 16.07% lower. Relative to its 5-year average FCF yield of 0.61% , the current FCF yield is about 52.74% lower.
P/B
Median3y
11.29
Median5y
11.66
FCF Yield
Median3y
0.80
Median5y
0.61
Competitors Valuation Multiple
AI Analysis for SHOP
The average P/S ratio for SHOP competitors is 5.44, providing a benchmark for relative valuation. Shopify Inc Corp (SHOP.N) exhibits a P/S ratio of 15.34, which is 181.81% above the industry average. Given its robust revenue growth of 31.54%, this premium appears sustainable.
Performance Decomposition
AI Analysis for SHOP
1Y
3Y
5Y
Market capitalization of SHOP increased by 0.00% over the past 1 year. The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.
The secondary factor is the Unknown, contributed 0.00%to the performance.
Overall, the performance of SHOP in the past 1 year is driven by Unknown.
People Also Watch
Frequently Asked Questions
Is SHOP currently overvalued or undervalued?
Shopify Inc (SHOP) is now in the Fair zone, suggesting that its current forward PS ratio of 15.34 is considered Fairly compared with the five-year average of -42.59. The fair price of Shopify Inc (SHOP) is between 66.89 to 230.43 according to relative valuation methord.
What is Shopify Inc (SHOP) fair value?
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. The fair price of Shopify Inc (SHOP) is between 66.89 to 230.43 according to relative valuation methord.
How does SHOP's valuation metrics compare to the industry average?
The average P/S ratio for SHOP's competitors is 5.44, providing a benchmark for relative valuation. Shopify Inc Corp (SHOP) exhibits a P/S ratio of 15.34, which is 181.81% above the industry average. Given its robust revenue growth of 31.54%, this premium appears sustainable.
What is the current P/B ratio for Shopify Inc (SHOP) as of Jan 09 2026?
As of Jan 09 2026, Shopify Inc (SHOP) has a P/B ratio of 16.35. This indicates that the market values SHOP at 16.35 times its book value.
What is the current FCF Yield for Shopify Inc (SHOP) as of Jan 09 2026?
As of Jan 09 2026, Shopify Inc (SHOP) has a FCF Yield of 0.93%. This means that for every dollar of Shopify Inc’s market capitalization, the company generates 0.93 cents in free cash flow.
What is the current Forward P/E ratio for Shopify Inc (SHOP) as of Jan 09 2026?
As of Jan 09 2026, Shopify Inc (SHOP) has a Forward P/E ratio of 93.67. This means the market is willing to pay $93.67 for every dollar of Shopify Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Shopify Inc (SHOP) as of Jan 09 2026?
As of Jan 09 2026, Shopify Inc (SHOP) has a Forward P/S ratio of 15.34. This means the market is valuing SHOP at $15.34 for every dollar of expected revenue over the next 12 months.