SHOP
Shopify Inc
$152.78
▲ 3.6%Updated Aug 7, 11:30 AM ET
SHOP at a glance — five pillars scored 0–100 from real filed financials.
Overall: Neutral · 43/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
Market Cap
$155.02B
P/E
148.84x
Forward P/E (est.)
180.17x
ROE
10.5%
Revenue Growth
31.9%
EPS Growth
-17.4%
Profit Margin
10.8%
FCF Yield
-0.7%
Debt / Equity
0x
ROIC
9.0%
Interest Coverage
419.55x
Current Ratio
6.2x
Dividend Yield
—
Implied Growth (rev. DCF)
7.6%
Rating Score
43/100
Shopify Inc (SHOP) is a large-cap company in the Technology industry, part of the Information Technology sector of the S&P 500, with a market value around $155.02B.
In its latest reported year it generated about $11.56B in revenue and $1.23B in net profit.
Our model rates SHOP Neutral (43/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
3Y CAGR
27.3%
Revenue moved from $5.60B in 2022 to $11.56B in 2025, a 27.3% compound annual growth rate. The most recent year grew a strong 31.9% year over year. Consistent top-line growth is one sign of healthy demand.
Gross Margin
48.1%
Operating Margin
12.7%
Net Margin
10.7%
ROE
10.5%
Shopify Inc keeps about 10.8% of each sales dollar as net profit, with a 48.1% gross margin and 12.7% operating margin. Return on equity is 10.5% and return on invested capital about 9.0%. Margins are moderate — typical of a competitive but profitable business.
Total Debt
—
Net Debt
—
Net Debt / EBITDA
—
Debt / Equity
0x
Leverage: debt-to-equity is 0.0x, and operating profit covers interest about 419.6x, with a current ratio of 6.2x. That is a conservative balance sheet — a cushion in downturns.
Operating CF
$2.03B
Free Cash Flow
$2.01B
FCF Margin
17.4%
In the latest year Shopify Inc produced about $2.03B of operating cash flow and $2.01B of free cash flow after capital spending. That is a free-cash-flow yield of about -0.7% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.
P/E
148.84x
P/S
13.41x
P/B
19.89x
EV / EBITDA
—
SHOP trades at 148.8x trailing earnings (about 180.2x on estimated forward earnings), 13.4x sales, and 19.9x book value. Reverse-engineering today's price implies the market expects roughly 7.6% long-term free-cash-flow growth. That is a rich multiple that prices in a lot of future growth.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
—
Current price
$152.78
Starting FCF (latest 10-K)
$2.01B
Growth, years 1–5
20.0%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where SHOP sits versus its Information Technology sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 98 Information Technology companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How SHOP stacks up against its Information Technology peers — valuation, profitability, and growth versus the sector median.
In the Information Technology sector (230 S&P 500 companies), SHOP ranks #81 of 230 by our overall rating. It trades at a premium versus the sector on earnings (148.8x P/E vs. 38.9x median) with a lower return on equity (10.5% vs. 17.5%) and faster revenue growth (31.9% vs. 17.7%).
P/E vs sector
148.8x
median 38.9x
ROE vs sector
10.5%
median 17.5%
Growth vs sector
31.9%
median 17.7%
Sector rank
#81
of 230 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Information Technology companies by sub-industry and size. Sector median is across all 230 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $152.78 today · expected CAGR 24% – 37%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $15.25B | $20.14B | $26.58B | $35.08B | $46.31B |
| Net income | $1.68B | $2.21B | $2.92B | $3.86B | $5.09B |
| EPS | $1.65 | $2.18 | $2.88 | $3.80 | $5.02 |
| Share price (low) | $147.18 | $194.28 | $256.45 | $338.51 | $446.83 |
| Share price (high) | $246.40 | $325.25 | $429.33 | $566.72 | $748.07 |
| CAGR (low–high) | -4% / 61% | 13% / 46% | 19% / 41% | 22% / 39% | 24% / 37% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for SHOP:
- Revenue is growing 31.9% a year, a sign of real demand.
- A conservative balance sheet (debt/equity 0.0x) lowers risk.
The case against SHOP:
- A rich 148.8x earnings multiple prices in a lot of growth.
- Limited free cash flow at today's price.
Valuation risk — at 148.8x earnings, disappointing results could compress the multiple.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the picture is mixed: Shopify Inc is a large-cap information technology business still growing nicely, with modest profitability, and a sound balance sheet. It trades at 148.8x earnings, which our model scores Neutral (43/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 53 Wall Street analysts covering SHOP recommend (August 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Latest SEC Filings
SHOP's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
In the Idea Lab
SHOP — frequently asked questions
Is SHOP a good stock to buy?
We don't give buy or sell advice. Our model rates Shopify Inc Neutral (43/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is SHOP's rating on The Stocks School?
Shopify Inc currently scores 43/100 (Neutral) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does SHOP's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Shopify Inc's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for SHOP calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this SHOP analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell SHOP. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.