Shopify Inc. (SHOP) is a publicly traded company in the Technology — Software - Application industry listed on NASDAQ. This overview shows the latest price, key valuation ratios, profitability metrics and financial-health indicators used by fundamental investors.
Shopify Inc. functions as a premier commerce technology company, providing an extensive platform and associated services to empower businesses worldwide. Its reach extends across Canada, the United States, Europe, the Middle East, Africa, the Asia Pacific region, and Latin America. The company's robust platform equips merchants to effectively display, organize, market, and sell their merchandise through a multitude of sales avenues.
Is Shopify Inc. stock overvalued or undervalued in 2026?
Shopify Inc. (SHOP) trades at 113× earnings (P/E), above the median of the 314 technology companies over $2bn in Kaplio's universe. At its sector median (32.0×) $48 (-72 %).
Kaplio overview: Shopify Inc.
Market cap $219B · 52 weeks $95 – $179 (6 % below the high) · P/E 113× · 2027 expected P/E 67.8× · Dividend none · Next earnings November 3, 2026 · expected EPS $0.46 · Closing price, Oct 28 · accounts published Aug 5.
- Valuation: P/E 113.2× (expensive).
- Business: ROIC 12 % (fair).
- Balance sheet: Net cash/EBITDA 0.9× (solid).
- Earnings: 6 of 8 (uneven).
What would it be worth at its usual multiples?
At its sector median (32.0×) $48 (-72 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.
What matters in technology: 5 of 8 pass
- Gross margin 48.1 %, fails.
- FCF / Revenue 17.4 %, fails.
- ROIC 11.7 %, fails.
- 3y revenue growth 26.2 %, passes.
- Rule of 40 (SaaS only) 44, passes.
- SBC / Revenue 3.9 %, passes.
- Net debt / EBITDA −0.9×, passes.
- EV/EBITDA vs own 5y 90.5×, passes.
Against its peers (reference peers) — Shopify Inc.: P/E 113×; EV/EBITDA 90.5×; ROIC 11.7 %; $219B. Alibaba Group Holding Limited (P/E 21.7×; EV/EBITDA 11.2×; ROIC 2.0 %; $248B), MercadoLibre, Inc. (P/E 49.3×; EV/EBITDA 27.8×; ROIC 11.4 %; $91.8B), eBay Inc. (P/E 24.4×; EV/EBITDA 18.3×; ROIC 15.5 %; $52.5B).
Profitability
| Return on Equity | 15.06% |
| Return on Invested Capital | 11.66% |
| Return on Assets | 13.32% |
| Gross Margin | 47.77% |
| Operating Margin | 13.90% |
| Net Margin | 14.53% |
Financial Health
| Debt / Equity | 0.01 |
| Current Ratio | 5.35 |
| Piotroski F-Score | 5 |
| Altman Z-Score | 75.00 |
Price Performance
| 1 month | +13.46% |
| 3 months | +43.59% |
| Year-to-date | +4.50% |
| 1 year | -6.03% |
| 3 years | +258.53% |
| 5 years | +14.69% |
| 10 years | +3958.38% |
Related companies: AMZN · MELI · EBAY · BABA
Explore sector: Technology · Software - Application
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