Stock AnalizShopify Inc. SHOP
Computer Software: Prepackaged Software · data as of November 13, 2026
Shopify Inc. (SHOP) is a technology company listed in the US with a market value of about $189.2B. In the twelve months to September 30, 2026 it had revenue of $14.2B and net income of $2.1B, a net margin of 15.0%.
Its overall Stock Analiz score is 2.2 out of 5 (weak). The strongest part is financial health (5/5); the weakest is value (0/5).
Key numbers: a P/E of 89.7, a price to free cash flow of 71.1, 5-year revenue growth of 32% a year, a 5-year average ROIC of 0%. A discounted cash flow model with moderate assumptions puts its intrinsic value about 46% below the current price.
Score: 2.2 / 5
Checks passed
- Revenue growth above 10% last year
- 3-year revenue growth above 10% a year
- Strong R&D investment or growth above 20%
- 5-year EPS growth above 10% a year
- 5-year revenue growth above 8% a year
- More cash than debt, or low debt to equity
- Positive free cash flow
- Interest covered more than 5 times
Checks not passed
- P/E below 25
- P/E below the industry median
- P/FCF below 20
- Price below intrinsic value (DCF, moderate assumptions)
- PEG below 1.5
- Profit margin improving
- 3-year free cash flow growth above 10% a year
- 5-year average ROIC above 12%
Valuation
Growth and quality
Financials, last 10 years
| Fiscal year | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $14.2B | $11.6B | $8.9B | $7.1B | $5.6B | $4.6B | $2.9B | $1.6B | $1.1B | $673M | $389M |
| Net income | $2.1B | $1.2B | $2.0B | $132M | -$3.5B | $2.9B | $320M | -$125M | -$65M | -$40M | -$35M |
| Free cash flow | $2.7B | $2.0B | $1.6B | $905M | -$186M | $485M | $383M | $14M | -$19M | -$12M | -$10M |
| EPS (diluted) | $1.64 | $0.96 | $1.57 | $0.10 | $-2.69 | $2.27 | $0.25 | $-0.10 | $-0.05 | $-0.03 | $-0.03 |
| Net margin | 15.0% | 10.7% | 22.7% | 1.9% | -61.8% | 63.2% | 10.9% | -7.9% | -6.0% | -5.9% | -9.1% |
| ROIC | — | 8.8% | 8.3% | -9.9% | -6.7% | 1.7% | 1.0% | -3.5% | -3.4% | -3.9% | -7.1% |
From the company’s 10-K and 10-Q filings with the SEC. TTM = trailing twelve months.
What analysts expect
The average 12-month price target from 49 analysts is $177.29, 21% above the current price; targets range from $120.00 to $220.00; the consensus rating is “Buy”; expected EPS is $1.91 for the fiscal year ending December 31, 2026.
Frequently asked questions
What is Shopify’s P/E ratio?
About 89.7, based on the last twelve months of diluted earnings per share (forward P/E about 63.8).
Is Shopify stock undervalued?
Our DCF model with moderate assumptions puts its intrinsic value about 46% below the current market value. A model is a range, not a promise; try your own assumptions in the DCF calculator.
Does Shopify pay a dividend?
Not currently.
Is Shopify a good stock to buy?
We do not give buy or sell advice. Shopify scores 2.2 out of 5 on our five checks (value, growth, track record, financial health and shareholder returns); the checks above show why.
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Generated from SEC filings, analyst consensus estimates and market prices, rebuilt every day. Educational information, not investment advice.