Stock Analysis

How to Research Shopify's (NYSE:SHOP) Valuation on Simply Wall St

  •  Updated

Like many other eCommerce and tech stocks, Shopify's stock and underlying business performed incredibly well over 2020 and the majority of 2021. However since November of 2021, the stock has declined more than almost 60%.

The business reported Q4 and FY results recently and had a solid performance for the period, but provided lower guidance going forward. It appears the guidance was lower than what the market was expecting, and so the stock has declined considerably since then. This short term pessimism around the stock's medium term outlook might provide an opportunity for those investors with a longer term horizon if the underlying business fundamentals are still solid and set to improve.

In this video above, one of our equity analysts shows us how he uses Simply Wall St to learn more about Shopify's current valuation, latest results and future prospects and shows us the useful insights that can be gained from the report, and what he'd look at next.

If you'd like to view Shopify's latest analysis on Simply Wall St you can check out its Company Report which is updated every day!

Alternatively, if you'd like to view our industry wide analysis of similar companies within the tech space, check out the US IT Industry analysis!

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Find out whether Shopify is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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Simply Wall St analyst Michael Paige and Simply Wall St have no position in any of the companies mentioned. This article 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.

Michael Paige

Michael Paige

Michael is the Content Lead at Simply Wall St. With over 7 years of experience analysing and researching companies, Michael contributes to the creation of our analytical content and has done so as an equity analyst since 2020. He previously worked as an Associate Adviser at Ord Minnett, helping build and manage clients' portfolios, and has been investing personally since 2015.



Shopify Inc., a commerce company, provides a commerce platform and services in Canada, the United States, Europe, the Middle East, Africa, the Asia Pacific, and Latin America.

High growth potential with mediocre balance sheet.