Shopify Inc.

NYSE:SHOP Stock Report

Market Cap: US$92.3b

Shopify Valuation

Is SHOP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SHOP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SHOP ($71.31) is trading below our estimate of fair value ($85.15)

Significantly Below Fair Value: SHOP is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SHOP?

Other financial metrics that can be useful for relative valuation.

SHOP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue11.4x
Enterprise Value/EBITDA89.2x
PEG Ratio3.7x

Price to Earnings Ratio vs Peers

How does SHOP's PE Ratio compare to its peers?

The above table shows the PE ratio for SHOP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average43.3x
GDDY GoDaddy
12x-7.3%US$21.3b
VRSN VeriSign
20.8x2.8%US$17.8b
AKAM Akamai Technologies
23.4x11.4%US$14.6b
WIX Wix.com
117.1x32.0%US$8.6b
SHOP Shopify
72.3x19.7%US$92.3b

Price-To-Earnings vs Peers: SHOP is expensive based on its Price-To-Earnings Ratio (72.3x) compared to the peer average (43.3x).

Price to Earnings Ratio vs Industry

How does SHOP's PE Ratio compare vs other companies in the US IT Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a13.6%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a13.6%
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Price-To-Earnings vs Industry: SHOP is expensive based on its Price-To-Earnings Ratio (72.3x) compared to the US IT industry average (35.5x).

Price to Earnings Ratio vs Fair Ratio

What is SHOP's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SHOP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio72.3x
Fair PE Ratio50.9x

Price-To-Earnings vs Fair Ratio: SHOP is expensive based on its Price-To-Earnings Ratio (72.3x) compared to the estimated Fair Price-To-Earnings Ratio (50.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst SHOP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$71.31
US$79.22
+11.1%
11.0%US$105.00US$65.00n/a43
Sep ’25US$74.07
US$78.11
+5.5%
9.9%US$100.00US$65.00n/a41
Aug ’25US$58.17
US$76.76
+32.0%
11.1%US$100.00US$63.00n/a41
Jul ’25US$64.63
US$76.50
+18.4%
11.3%US$100.00US$63.00n/a40
Jun ’25US$59.15
US$76.60
+29.5%
11.1%US$100.00US$63.00n/a40
May ’25US$70.40
US$83.08
+18.0%
12.7%US$105.00US$63.00n/a40
Apr ’25US$78.19
US$82.53
+5.5%
12.4%US$100.00US$63.00n/a39
Mar ’25US$76.59
US$81.90
+6.9%
12.9%US$100.00US$63.00n/a39
Feb ’25US$76.72
US$75.67
-1.4%
14.5%US$100.00US$56.00n/a39
Jan ’25US$77.90
US$72.69
-6.7%
13.6%US$100.00US$53.00n/a39
Dec ’24US$73.86
US$68.21
-7.7%
10.5%US$82.00US$53.00n/a39
Nov ’24US$48.79
US$66.42
+36.1%
11.4%US$80.00US$50.00n/a42
Oct ’24US$54.57
US$67.94
+24.5%
10.8%US$80.00US$52.00n/a40
Sep ’24US$66.71
US$67.74
+1.5%
11.1%US$80.00US$52.00US$74.0740
Aug ’24US$67.45
US$64.32
-4.6%
14.2%US$80.00US$41.00US$58.1739
Jul ’24US$64.60
US$63.14
-2.3%
14.9%US$80.00US$41.00US$64.6340
Jun ’24US$57.94
US$60.76
+4.9%
17.6%US$80.00US$36.00US$59.1543
May ’24US$47.28
US$48.31
+2.2%
17.8%US$65.00US$34.00US$70.4043
Apr ’24US$47.94
US$47.68
-0.5%
17.4%US$65.00US$34.00US$78.1943
Mar ’24US$40.10
US$47.75
+19.1%
17.6%US$65.00US$34.00US$76.5942
Feb ’24US$50.26
US$41.77
-16.9%
16.9%US$60.00US$28.00US$76.7241
Jan ’24US$34.71
US$40.06
+15.4%
16.2%US$60.00US$28.00US$77.9041
Dec ’23US$43.40
US$39.69
-8.5%
16.0%US$60.00US$28.00US$73.8639
Nov ’23US$34.79
US$39.95
+14.8%
16.0%US$60.00US$28.00US$48.7939
Oct ’23US$26.94
US$40.85
+51.6%
20.7%US$75.00US$29.00US$54.5737
Sep ’23US$31.27
US$40.99
+31.1%
20.4%US$75.00US$29.00US$66.7139

Analyst Forecast: Target price is less than 20% higher than the current share price.

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