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Shopify Inc
SHOP · NASDAQ · Software
Shopify Inc.
Current price
$172.13
▼ −$4.39 (2.49%) today
Share price
Live market data▲ +18.47 (+12.02%)2025-10-13 — 2026-10-14
ET&A View
Last reviewed 17 September 2026
Accumulate
ET&A likes the company but would prefer investors to build exposure gradually.
Fair Value
Members
12M Price Target
Members
Preferred Entry
Members
ET&A Score
8.6/ 10Strong overall
Shopify has evolved from an e-commerce website builder into one of the world's most important commerce infrastructure platforms, with increasingly powerful competitive positions across payments, merchant software, point-of-sale,…
Is it expensive?
Why we like it
- Holds more cash than debt.
- Sales are growing quickly (+30% a year).
- Turns about 15% of its sales into spare cash.
What worries us
- Profits are falling (−39%).
- The share price swings more than most.
Business Health
Is the business financially healthy?
Yes — healthy
Revenue, cash generation and the balance sheet stand out. Watch earnings.
Overall
Strong
- Growth Excellent
Revenue
$13.3bn · ↑ +30% last year
- Growth Weak
Earnings
$1.9bn · ↓ −39% last year
- Good
Margins
Keeps 18% of sales as operating profit
- Excellent
Cash generation
$2.0bn spare cash a year · 15% of sales
- Excellent
Balance sheet
More cash than debt
Investor View
More on Shopify Inc
Open a section for the detail behind the quick view.
Our full viewET&A's complete thesis — why we hold the view we do.Members
Shopify has evolved from an e-commerce website builder into one of the world's most important commerce infrastructure platforms, with increasingly powerful competitive positions across payments, merchant software,…
Insight
The complete ET&A view
See our full reasoning, what could drive the shares higher or go wrong, our Fair Value and Preferred Entry, and how our view has changed.
- Our View in full
- What could drive it higher / go wrong
- Fair Value & Preferred Entry
- How our view has changed
Explore Insight →Included with Insight
What could drive it higher — and what could go wrongThe catalysts and risks we are watching.Members
Valuation discussionWhere today's price sits, and how it compares with the company's own history and its peers.Members
Financial and earnings trendsSales, margins, profit, earnings per share and cash, year by year.
Reported annual results, newest first · Market data. “Growth” is the change in sales on the year before.
| Year | Revenue | Growth | Operating margin | Net income | EPS | Free cash flow |
|---|---|---|---|---|---|---|
| FY2025 | $11.6bn | +30.1% | 16.3% | $1.2bn | $0.94 | $2.0bn |
| FY2024 | $8.9bn | +25.8% | 14.7% | $2.0bn | $1.56 | $1.6bn |
| FY2023 | $7.1bn | +26.1% | 1.0% | $132m | $0.10 | $905m |
| FY2022 | $5.6bn | — | −12.3% | −$3.5bn | −$2.73 | −$186m |
Next earningsTue, 3 Nov 2026Earnings calendar →
Who it suitsStrategy suitability and investment style.
Long-term growth investors
How it compares with peersOther companies we cover in Software.
- Uber Technologies IncUBER
ET&A sees significant upside from the current price with an attractive risk/reward profile.
- Salesforce IncCRM
ET&A sees significant upside from the current price with an attractive risk/reward profile.
- ServiceNow IncNOW
ET&A sees significant upside from the current price with an attractive risk/reward profile.
- SAP SESAP
ET&A sees significant upside from the current price with an attractive risk/reward profile.
Compare Shopify Inc with any company → The model’s own peer calculations are in the Research View.
What the company doesThe full company profile.
Shopify Inc. is a global commerce technology company that provides the software, payments, tools, and infrastructure businesses use to sell products and services across online stores, physical retail locations, social media, marketplaces, and other digital channels. Its platform supports merchants with storefront design, payments, inventory management, shipping, marketing, analytics, financing, point-of-sale systems, and enterprise commerce solutions.
Shopify’s strength comes from its role as an operating system for modern commerce. The company serves businesses of different sizes, from entrepreneurs and small merchants to large brands and enterprise customers, helping them manage sales, customer relationships, fulfilment, and digital operations in one platform. As commerce continues to move across online, offline, social, mobile, and AI-enabled channels, Shopify remains one of the most important technology platforms supporting independent merchants and digital retail growth.
Software · Canada
Research ViewOpen the full researchThe full researchFull financial statements, valuation multiples, historical data, forecasts, methodology, scoring calculations and the valuation model.OpenClose
For detailed analysis. Each section opens on its own.
Financial statementsEvery published figure with its source, the market snapshot and connected sheets.
Income
- Revenue
- $13.3bnMarket data
- Gross profit
- $6.3bnMarket data
- EBITDA
- $2.4bnMarket data
- Operating profit (EBIT)
- $1.9bnMarket data
- Net income
- $1.9bnMarket data
- Earnings per share (EPS)
- $1.48Market data
Growth
- Revenue growth, latest year
- Excellent30.1%Calculated
- Revenue growth, 3-year average
- Excellent27.3%Calculated
- Earnings growth, latest year
- Weak−39.0%Calculated
- Revenue growth, latest quarter vs a year earlier
- 33.7%Market data
- Earnings growth, latest quarter vs a year earlier
- 68.1%Market data
Margins & returns
- Gross margin
- Strong47.8%Market data
- EBITDA margin
- 18.0%Market data
- Operating margin
- Good17.6%Market data
- Net margin
- Good14.5%Market data
- Return on equity (ROE)
- Good15.5%Market data
- Return on assets (ROA)
- 10.2%Market data
Cash flow
- Operating cash flow
- $2.4bnMarket data
- Free cash flow
- $2.0bnMarket data
- Free-cash-flow margin
- Excellent15.1%Calculated
- Free cash flow ÷ net income
- 1.0×Calculated
Balance sheet
- Cash
- $4.9bnMarket data
- Total debt
- $178mMarket data
- Net cash (more cash than debt)
- $4.8bnMarket data
- Net debt ÷ EBITDA
- Excellent−2.0×Calculated
- Debt ÷ equity
- 0.0×Market data
- Current ratio
- 5.4×Market data
Shares & dividends
- Shares outstanding
- 1.21bnMarket data
- Market capitalisation
- $221.9bnMarket data
- Dividend per share
- $0.00Market data
- Dividend yield
- Weak0.0%Market data
- Payout ratio
- 0.0%Market data
- Market data — the live feed (Yahoo Finance)
- Calculated — worked out by ET&A from the figures shown, using the formulas in our methodology
Other published figures
- Price / Sales
- Members
- EV / EBITDA
- Members
- Price / Book
- Members
- Forward P/E
- Members
Valuation ratios (P/E, P/S, P/B, EV/EBITDA) are part of ET&A membership — view plans.
Market data
LivePrice$172.13
Day−$4.39 (−2.49%)
52-week range$95.40 – $179.22
vs 52-week low+80.43%
vs 52-week high−3.96%
As of 14 October 2026
- P/E Ratio
- 116.55x
Valuation multiplesP/E, forward P/E, EV/EBITDA, Price/Sales and FCF yield — today and at Fair Value.Members
Standard ways of comparing the share price with the company’s earnings, sales and cash. Tap the “i” for what each one means.
| Measure | Today | Source |
|---|---|---|
| P/E | Members | |
| Forward P/E | Members | |
| EV/EBITDA | Members | |
| Price/Sales | Members | |
| FCF Yield | Members |
Valuation ratios are part of ET&A membership.
Other published measures
- Price / Book
- Members
Historical dataValuation history, how our view has changed, and the share-price history.
Share-price history
Use the 5Y and Max ranges on the price chart at the top of the page.
ForecastsWhat analysts expect — market consensus, not ET&A estimates.
Forecasts
- Forward EPS (next year, consensus)
- $2.46Market data
- Expected EPS growth, next year
- Excellent33.6%Market data
- Expected revenue growth, next year
- 32.0%Market data
Forecasts are market consensus or calculated from forward EPS — not ET&A estimates, and they can be wrong.
MethodologyHow ET&A values a company and reaches a view.
How we value Shopify Inc
- 1. The right method for the business. Each business is valued on the method that suits its economics — earnings for most companies, book value and returns for banks and insurers, cash flows or dividends where earnings mislead.
- 2. What the business deserves. ET&A builds a fair multiple from the company's own quality, sustainable growth, earnings predictability and risk. History, peers and the market are checked against it, but they don't set it.
- 3. Fair Value. The earnings (or other basis) per share multiplied by that fair multiple, cross-checked against independent methods.
- 4. Preferred Entry. A price below Fair Value that leaves room for the return ET&A requires for the company's risk.
- 5. Is it expensive? Today’s price is placed on ET&A’s Valuation Attractiveness scale — the same measure the ET&A Score uses. Cheap is the Preferred Entry; above Fair Value the shares are Expensive, and Very Expensive once they are more than 25% above it.
Powered by the ET&A Valuation FrameworkHow Fair Value & Preferred Entry work →
Read the full ET&A methodology →How we reach a view
The ET&A View combines our assessment of the business with where today’s price sits against our Preferred Entry and Fair Value. It is a considered judgement, not a mechanical score.
- Business quality
- Financial performance
- Growth outlook
- Debt and financial strength
- Valuation
- Risk
- What could drive it higher
- Buy
- ET&A sees significant upside from the current price with an attractive risk/reward profile.
- Accumulate
- ET&A likes the company but would prefer investors to build exposure gradually.
- Hold
- ET&A sees limited reason to buy aggressively or sell at the current price.
- Reduce
- ET&A believes the current valuation or risk profile makes a smaller position more appropriate.
- Sell
- ET&A believes the downside risk materially outweighs the potential return at the current price.
ET&A Score: ET&A's overall assessment of business quality, valuation, growth and risk, out of 10. It weighs business quality, financial strength, growth, valuation, risk, future prospects.
Powered by the ET&A Company Assessment FrameworkSee the full framework →
Scoring calculationsBehind the ET&A Score and the Business Health ratings.
Behind the ET&A Score
The automatic, rules-based scores that feed our research. The ET&A Score blends these with our own analysis of the business and its value. How the framework works →
ET&A Quant Score
Strong
Profitable · Strong balance sheet · Strong
Profitability & margins · Profitable5.6
Balance sheet · Strong balance sheet9.5
Price momentum · Strong9.8
Context — not part of the score
- Valuation multiplesExpensive
- Share-price steadinessVery high volatility
- IncomeNo dividend
Valuation and share-price swings describe the shares, not the company, so they are judged in the ET&A Score and View instead.
- Annualised volatility
- Members
- Max drawdown (1y)
- Members
- 12-month return
- Members
- 3-month return
- Members
- P/E
- Members
- Price / Sales
- Members
- EV / EBITDA
- Members
- EBITDA margin
- Members
- Net debt / EBITDA
- Members
- Dividend yield
- Members
The detailed figures behind these scores — price swings, past falls, returns, valuation and margins — are part of ET&A membership. View plans
Based on the factors that could be measured (45% of the model).
Business Health ratings
Each area is scored from 0 to 10 on ET&A’s methodology scales — the same ones our research uses — then given a word: Excellent from 8.5, Strong from 7, Good from 5.5, Average from 4.5, Below Average from 3, Weak below 3. The overall answer is the average of the areas we could rate (at least three); the dividend isn’t part of it.
| Area | Based on | Score | Rating |
|---|---|---|---|
| Revenue |
Rated on 3-year average revenue growth, on ET&A's growth scale. | 9.7 / 10 | Excellent |
| Earnings |
Rated on the latest year's earnings growth, on ET&A's growth scale. | 2.0 / 10 | Weak |
| Margins |
The average of operating and net margin, each scored on ET&A's margin scales. A negative margin scores 1 (Weak). | 6.7 / 10 | Good |
| Cash generation |
Free cash flow as a share of sales, on ET&A's cash-generation scale. | 8.6 / 10 | Excellent |
| Balance sheet |
Net debt ÷ EBITDA — roughly how many years of operating earnings would repay the debt — on ET&A's leverage scale. | 10.0 / 10 | Excellent |
| Overall | Average of the 5 rated areas | 7.4 / 10 | Strong |
ET&A's scales
Where each band starts on the scales above. They are fixed and identical for every company we cover; they come straight from ET&A’s methodology, so a company is judged the same way here as in our research.
| Measure | Excellent | Strong | Good | Average | Below Average | Weak |
|---|---|---|---|---|---|---|
| GrowthStructural Growth (Fundamental Conviction) | 18%+ | 10%+ | 5.0%+ | 1.7%+ | −2.5%+ | below −2.5% |
| Operating marginCompetitive Position (Fundamental Conviction) | 29%+ | 20%+ | 13%+ | 7.5%+ | 0%+ | below 0% (loss) |
| Net marginEarnings Durability (Fundamental Conviction) | 23%+ | 15%+ | 9.8%+ | 6.0%+ | 0%+ | below 0% (loss) |
| Free-cash-flow marginCapital Allocation (Fundamental Conviction) | 15%+ | 8.5%+ | 3.8%+ | 1.3%+ | −2.5%+ | below −2.5% |
| Net debt ÷ EBITDAStructural Risk (Fundamental Conviction) | net cash | ≤ 1.5× | ≤ 2.8× | ≤ 3.6× | ≤ 5.0× | above 5.0× |
| Return on equity (banks & insurers)Bank and insurer quality | 16%+ | 12%+ | 9.0%+ | 6.7%+ | 2.7%+ | below 2.7% |
| Equity ÷ assetsBank capital | 7.5%+ | 6.0%+ | 4.7%+ | 4.0%+ | any | — |
| Dividend yieldIncome factor (ET&A Quant Score) | 5.8%+ | 4.0%+ | 2.5%+ | 1.8%+ | 1.0%+ | below 1.0% |
Band floors: Excellent 8.5 · Strong 7 · Good 5.5 · Average 4.5 · Below Average 3 (scores out of 10). Utilities and property companies’ structural debt is scored 6.5, as in ET&A’s risk model.
Valuation model outputsFair Value, the 12-Month Price Target, Preferred Entry and the expected return — and how each was calculated.Members
Peer calculationsThe comparable companies the valuation model used, with their multiples and returns.Members
Detailed assumptionsEvery input the valuation model used, with its source.Members
Research notesNo research notes published yet.
No research notes have been published for Shopify Inc yet.
Need deeper analysis on Shopify Inc? ET&A Professional includes full company notes, valuations and models — or commission bespoke research.
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