Shopify Valuation
| SHOP Stock | USD 110.95 4.53 3.92% |
At this time, the company appears to be overvalued. Shopify has a current Real Value of $95.09 per share. The regular price of the company is $110.95. Our model measures the value of Shopify from inspecting the company fundamentals such as Operating Margin of 0.14 %, return on equity of 0.15, and Shares Outstanding of 1.21 B as well as reviewing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Shopify's valuation include:
Price Book 12.937 | Enterprise Value | Enterprise Value Ebitda 131.0751 | Price Sales 16.8893 | Forward PE 75.188 |
Overvalued
Today
Please note that Shopify's price fluctuation is very steady at this time. Calculation of the real value of Shopify is based on 3 months time horizon. Increasing Shopify's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Shopify's intrinsic value may or may not be the same as its current market price of 110.95, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 110.95 | Real 95.09 | Target 108.27 | Hype 110.95 | Naive 106.48 |
The intrinsic value of Shopify's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Shopify's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Shopify helps investors to forecast how Shopify stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Shopify more accurately as focusing exclusively on Shopify's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Shopify's intrinsic value based on its ongoing forecasts of Shopify's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Shopify's closest peers.
Shopify Cash |
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Shopify Valuation Trend
Shopify's real value is important for investors to make better decisions and a more accurate overall view of Shopify's financial worth over time. Using both Shopify's enterprise value as well as its market capitalization is the best way to gauge the value of the company and is usually enough for investors to make market timing conclusions.
Shopify Total Value Analysis
Shopify is at this time estimated to have valuation of 145.62 B with market capitalization of 141.3 B, debt of 1.13 B, and cash on hands of 1.65 B. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Shopify fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
145.62 B | 141.3 B | 1.13 B | 1.65 B |
Shopify Investor Information
About 71.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 1.12. Shopify had not issued any dividends in recent years. The entity had 10:1 split on the 29th of June 2022. Based on the key measurements obtained from Shopify's financial statements, Shopify is performing exceptionally good at the present time. It has a great chance to report excellent financial results in March.Shopify Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Shopify has an asset utilization ratio of 63.77 percent. This connotes that the Company is making $0.64 for each dollar of assets. An increasing asset utilization means that Shopify is more efficient with each dollar of assets it utilizes for everyday operations.Shopify Ownership Allocation
Shopify shows a total of 1.21 Billion outstanding shares. The majority of Shopify outstanding shares are owned by institutional holders. These institutional investors are usually referred to as non-private investors looking to take positions in Shopify to benefit from reduced commissions. Consequently, institutions are subject to a different set of regulations than regular investors in Shopify. Please pay attention to any change in the institutional holdings of Shopify as this could imply that something significant has changed or is about to change at the company. On December 5, 2024, Representative Josh Gottheimer of US Congress acquired under $15k worth of Shopify's common stock.Shopify Profitability Analysis
The company reported the previous year's revenue of 8.88 B. Net Income was 2.02 B with profit before overhead, payroll, taxes, and interest of 2.75 B.About Shopify Valuation
The stock valuation mechanism determines Shopify's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Shopify based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Shopify. We calculate exposure to Shopify's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Shopify's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 4.5 B | 4.7 B | |
| Pretax Profit Margin | 0.25 | 0.26 | |
| Operating Profit Margin | 0.12 | 0.13 | |
| Net Profit Margin | 0.23 | 0.24 | |
| Gross Profit Margin | 0.50 | 0.63 |
Shopify Growth Indicators
Investing in growth stocks can be very risky. If the company such as Shopify does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 1.3 B | |
| Quarterly Earnings Growth Y O Y | 4.858 | |
| Forward Price Earnings | 75.188 |
Shopify Current Valuation Indicators
Shopify's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Shopify's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Shopify, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Shopify's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Shopify's worth.Additional Tools for Shopify Stock Analysis
When running Shopify's price analysis, check to measure Shopify's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Shopify is operating at the current time. Most of Shopify's value examination focuses on studying past and present price action to predict the probability of Shopify's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Shopify's price. Additionally, you may evaluate how the addition of Shopify to your portfolios can decrease your overall portfolio volatility.