Shopify Inc. (SHOP) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-87.8%

$19.51

vs $160.49 price

Levered DCF

$16.50

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

72.17

Safe zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	169.44×	68.16×	779×	-12.71×	59.37×	419.24×	-361.44×	-226.6×
P/B	15.52×	11.91×	11.01×	5.33×	15.42×	21.15×	14.9×	7×
P/S	18.09×	15.5×	14.14×	7.85×	37.23×	46.2×	28.47×	13.63×
EV / EBITDA	107.7×	107×	691.46×	-73.57×	53.11×	418.67×	-738.63×	-219.59×
Gross margin	48.1%	50.4%	49.8%	49.2%	53.8%	52.6%	54.9%	55.6%
Operating margin	12.7%	12.1%	-20.1%	-14.7%	5.8%	3.1%	-8.9%	-8.6%
Net margin	10.7%	22.7%	1.9%	-61.8%	63.2%	10.9%	-7.9%	-6.0%
Current ratio	5.96×	3.71×	6.99×	7.07×	12.15×	15.69×	8.67×	15.35×
Debt / equity	0.01×	0.1×	0.13×	0.17×	0.11×	0.14×	0.05×	0.01×
Interest coverage	0×	0×	0×	-714.78×	77.6×	9.43×	0×	0×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	9.1%	17.5%	1.5%	-42.0%	26.2%	5.0%	-4.1%	-3.1%
Return on invested capital	8.7%	7.5%	-9.7%	-7.9%	2.0%	1.2%	-4.4%	-4.3%
Return on assets	8.1%	14.5%	1.2%	-32.2%	21.8%	4.1%	-3.6%	-2.9%
Free cash flow yield	1.0%	1.2%	0.9%	-0.4%	0.3%	0.3%	0.0%	-0.2%
Earnings yield	0.6%	1.5%	0.1%	-7.9%	1.7%	0.2%	-0.3%	-0.4%
Enterprise value	$207.7B	$137.3B	$99.6B	$43.7B	$170.4B	$133.6B	$44.4B	$14.2B
Net debt / EBITDA	-0.7×	-0.29×	-1.83×	0.43×	-0.41×	-5.61×	8.28×	5.95×
Cash conversion cycle (days)	41	40	24	9	4	8	9	-2