Shopify Inc (SHOP) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Shopify Inc stock (SHOP) is currently trading at $118.42. Shopify Inc PE ratio is 123.56. Shopify Inc PS ratio (Price-to-Sales) is 13.12. Analyst consensus price target for SHOP is $160.15. WallStSmart rates SHOP as Underperform.
Shopify Inc (SHOP) stock price prediction for 2030: Base case $51.21. Bull case $64.01. Bear case $38.41. See full SHOP 2030 price forecast and methodology on WallStSmart.
- SHOP PE ratio analysis and historical PE chart
- SHOP PS ratio (Price-to-Sales) history and trend
- SHOP intrinsic value — DCF, Graham Number, EPV models
- SHOP stock price prediction 2025 2026 2027 2028 2029 2030
- SHOP fair value vs current price
- SHOP insider transactions and insider buying
- Is SHOP undervalued or overvalued?
- Shopify Inc financial analysis — revenue, earnings, cash flow
- SHOP Piotroski F-Score and Altman Z-Score
- SHOP analyst price target and Smart Rating
Shopify Inc
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SHOP Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Shopify Inc (SHOP)
SHOP trades 1730% above its Graham fair value of $6.39, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Shopify Inc (SHOP) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, operating margin, revenue growth. Concerns around peg ratio and return on equity. Mixed signals suggest waiting for clearer direction before acting.
Shopify Inc (SHOP) Key Strengths (4)
Revenue surging 30.60% year-over-year
74.23% of shares held by major funds and institutions
Large-cap company with substantial market presence
Strong operational efficiency: $20 kept per $100 revenue
Supporting Valuation Data
Shopify Inc (SHOP) Areas to Watch (6)
Earnings declining -42.30%, profits shrinking
Very expensive relative to growth, significant premium
Very expensive at 13.1x annual revenue
Very expensive at 11.2x book value
Low profitability relative to shareholder equity
Decent profitability, keeps $11 per $100 revenue
Supporting Valuation Data
Shopify Inc (SHOP) Detailed Analysis Report
Overall Assessment
This company scores 48/100 in our Smart Analysis, earning a D+ grade. Out of 10 metrics analyzed, 4 register as strengths (avg 9.3/10) while 6 fall into concern territory (avg 2.5/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Revenue Growth, Institutional Own., Market Cap. Profitability is solid with Operating Margin at 20.30%. Growth metrics are encouraging with Revenue Growth at 30.60%.
The Bear Case
The primary concerns are EPS Growth, PEG Ratio, Price/Sales. Some valuation metrics including PEG Ratio (9.56), Price/Sales (13.12), Price/Book (11.24) suggest expensive pricing. Growth concerns include EPS Growth at -42.30%, which may limit upside. Profitability pressure is visible in Return on Equity at 9.84%, Profit Margin at 10.60%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether EPS Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 9.84% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 30.60% strong but requiring continuation.
Risk Considerations
Based on the metric profile, this is a higher risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Fundamental challenges outweigh strengths at current levels. EPS Growth and PEG Ratio are the primary drags. Consider waiting for meaningful improvement before committing capital.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
SHOP Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
SHOP's Price-to-Sales ratio of 13.12x trades 38% below its historical average of 21.06x (29th percentile). The current valuation is 79% below its historical high of 61.52x set in Jun 2020, and 101% above its historical low of 6.52x in Sep 2022.
Compare SHOP with Competitors
Top SOFTWARE - APPLICATION stocks by market cap
Compare any two stocks →WallStSmart Analysis Synopsis
Data-driven financial summary for Shopify Inc (SHOP) · TECHNOLOGY › SOFTWARE - APPLICATION
The Big Picture
Shopify Inc is a strong growth company balancing expansion with improving profitability. Revenue reached 11.6B with 31% growth year-over-year. Profit margins of 10.6% are healthy, with room for further expansion as the business scales.
Key Findings
Revenue growing at 31% YoY, reaching 11.6B. This pace significantly outperforms most SOFTWARE - APPLICATION peers.
ROE of 984.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Earnings fell 42% YoY while revenue grew 31%. This gap usually reflects one-time items (tax benefits, write-offs) in the prior period, not an operational decline.
What to Watch Next
Margin expansion: can Shopify Inc push profit margins above 15% as the business scales?
Growth sustainability: can Shopify Inc maintain 31%+ revenue growth, or will competition slow it down?
Valuation compression risk at a P/E of 123.6x. Any growth miss could trigger a sharp correction.
Volatility is elevated with a beta of 2.90, so expect amplified moves relative to the broader market.
Bottom Line
Shopify Inc offers an attractive blend of growth (31% revenue expansion) and improving fundamentals. The company is transitioning from pure growth to profitable growth, a critical inflection point. Watch for sustained margin expansion as the key signal.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
Data sourced from SEC Form 4 filings
Last updated: 8:23:04 AM
About Shopify Inc(SHOP)
NASDAQ
TECHNOLOGY
SOFTWARE - APPLICATION
USA
Shopify Inc., a commerce company, offers a commerce and service platform in Canada, the United States, the United Kingdom, Australia, Latin America, and internationally. The company is headquartered in Ottawa, Canada.