Shopify (SHOP) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Shopify

NasdaqGS•Technology•Software - Application

$128.79+2.19(0.02%)Market closed

Market Cap

$166.18B

P/E

86.2x

P/S

12.5x

P/B

13.1x

Shopify Inc., a commerce technology company, provides tools to start, scale, market, and run a business of various sizes in Canada, the United States, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The Company offers Shopify platform that enables merchants to manage products and inventory, process orders and payments, fulfill and ship orders, build customer relationships, source products, leverage analytics, and reporting and access financing for running their business across all of their sales channels, including web and mobile storefronts, physical retail locations, social media storefronts, and marketplaces. It also provides Shopify Payments, a fully integrated payment processing service that allows merchants to accept and process payment cards online and offline. In addition, the company engages in the sale of themes and apps; shipping labels through Shopify Shipping; point-of-sale hardware; advertising on the Shopify App Store; and Shop Campaigns for buyer acquisitions, as well as registration of domain names. The company was formerly known as Jaded Pixel Technologies Inc. and changed its name to Shopify Inc. in November 2011. Shopify Inc. was incorporated in 2004 and is based in Ottawa, Canada.

How this company scores

GoodMetricSide Score: 73/100

Strongest: Profitability (22/25); weakest: Balance Sheet & Red Flags (15/25).

Profitability22/25

Growth18/25

Balance Sheet & Red Flags15/25

Cash & Earnings Quality18/25

Strengths

High ROERising earningsInterest easily coveredConsistent growth

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 86.2x5y range 77.3x – 173.3x

Currently near its 4-quarter median.

P/S · 12.5x5y range 11.6x – 18.5x

Currently near its 4-quarter median.

P/B · 13.1x5y range 11.2x – 15.8x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

Some Concerns

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.

Price & Volume

Market Cap $166.18B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $13.27B
Q. Revenue: $3.58B
TTM EBITDA: $1.86B
TTM Op. Income: $1.84B
Q. Op. Income: $488.00M
TTM Net Income: $1.93B
Q. Net Income: $1.50B
EPS: $1.16
Shares Out.: $1.30B

$13.27B in TTM revenue grew from zero YoY, reaching $3.58B last quarter. TTM EBITDA of $1.86B and TTM operating income of $1.84B show growth is flowing through to the bottom line. TTM net income of $1.93B means revenue is converting into profit. Across the last 7 quarters, TTM revenue has risen for 2 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 47.7%
EBITDA Margin: 13.8%
Op. Margin: 13.6%
Net Margin: 41.9%

Op. margin of 13.6% is up 2.8% YoY — cost efficiency is improving. Net margin at 41.9% and gross margin of 47.7% show how much of each revenue dollar survives to profit. Over the past year, operating margin is up 25% — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 86.2x
P/S Ratio: 12.5x
P/B Ratio: 13.1x

At 86.2x P/E, the stock trades above typical market levels — the market expects above-average growth. P/S of 12.5x and P/B of 13.1x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Across the last 4 quarters, P/E has fallen for 2 consecutive quarters — an improving trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $14.47B
Cash: $1.66B
Long-Term Debt: N/A
Book Value: $12.68B
D/E Ratio: N/A
Debt/EBITDA: 0.0

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $658.00M
TTM Free Cash Flow: $2.35B
FCF Margin: 17.7%
FCF / Net Income: 1.2

TTM FCF of $2.35B on $658.00M in operating cash flow. The FCF / Net Income ratio of 1.2x means free cash flow covers net income — earnings are backed by cash. Across the last 7 quarters, free cash flow has risen for 2 consecutive quarters — an improving trend.