SHOP

Shopify Inc.

Fundamental data last updated:June 1, 2026

We may earn a commission from partner links. This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate.

company profile

SECTOR

Technology

industry

Software - Application

Exchange

NASDAQ

County of HQ

CA

Next Earnings Date

08/05/2026

Business Summary

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. The company's platform enables merchants to displays, manages, markets, and sells its products through various sales channels, including web and mobile storefronts, physical retail locations, pop-up shops, social media storefronts, native mobile apps, buy buttons, and marketplaces; and enables to manage products and inventory, process orders and payments, fulfill and ship orders, new buyers and build customer relationships, source products, leverage analytics and reporting, manage cash, payments and transactions, and access financing. It also sells custom themes and apps, and registration of domain names; and merchant solutions, which include accepting payments, shipping and fulfillment, and securing working capital. The company was formerly known as Jaded Pixel Technologies Inc. and changed its name to Shopify Inc. in November 2011. Shopify Inc. was incorporated in 2004 and is headquartered in Ottawa, Canada.

 


VALUATION

P/E

116.24

Market Cap ($M USD)

$154.15B

Forward P/E

28.70

PEG

0.09

PRICE TO SALES

12.47

PRICE TO BOOK

12.34

EV / EBITDA

95.60

5-Year Average P/E

Free Cash Flow Yield

1.38%

DCF Value

$19.61

Graham Number

$14.88

Price to FCF

72.44

EV to FCF

71.66

Earnings Yield

0.86%

FCF Yield

1.38%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$1.02

Next Year EPS Growth Estimate

$4.14

Next Year Revenue Growth Estimate

$3.04T

Return on Equity (ROE)

10.52%

FREE CASH FLOW

Operating Margin

13.32%

Debt-to-Equity

0.01

Piotroski F-Score

6

Altman Z-Score

57.17

Return on Invested Capital (ROIC)

12.88%

Current Ratio

6.20

Quick Ratio

6.20

Net Debt to EBITDA

-1.05

Interest Coverage

0.00

Gross Profit margin

47.97%

FCF PER SHARE

$1.63

REVENUE PER SHARE

$9.49

Gainseekers Quantitative Analysis

Summary

Shopify’s valuation paints a complex picture. With a Forward P/E of 25.24, the market anticipates robust growth, yet the stock traded significantly above its DCF Value, suggesting potential overvaluation. The Altman Z-score of 51.41 indicates financial stability, but the Earnings Yield of just 0.98% raises questions about immediate returns. Despite a high Price/Book ratio of 10.85, the company’s safety net is bolstered by its low Debt/Equity ratio of 0.01. Investors must weigh these factors carefully, as the market may be pricing in perfection.

AI Exposure / Tech Reliance

Operating in the Software - Application industry, Shopify is well-positioned to leverage AI and modern tech shifts. Its platform can integrate AI-driven tools to enhance e-commerce capabilities, offering merchants advanced analytics and automation. This adaptability ensures Shopify remains at the forefront of technological innovation.

The Bull Case

For GARP investors, Shopify offers compelling reasons to buy. The ROIC of 12.88% reflects strong capital efficiency, while a Piotroski F-Score of 6 suggests solid financial health. Despite a modest FCF Yield of 1.57%, the company's operating margin of 13.32% indicates effective cost management and pricing power. These metrics underscore Shopify's ability to generate sustainable growth and returns.

The Bear Case

However, Shopify's high valuation multiples cannot be ignored. A Price/Sales ratio of 10.96 and an EV to EBITDA of 83.89 suggest the stock is priced for perfection. The stock's proximity to its 52-week high, with a mere 9.97% distance to the low, signals potential overextension. While its debt levels are commendably low, the market's lofty expectations could lead to volatility if growth falters.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$156.79

Institutional Ownership %

1-Year Beta

2.64

Insider Buying % (6 Mo)

Distance to 52-Week High

53.37%

Distance to 52-Week Low

20.87%

EARNINGS SURPRISE %

10.36%

50-DAY SMA

$115.52

200-DAY SMA

$139.78

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.