Options Corner: SHOP Struggles Amid Downgrade
As a part of its internet stock analytical rebalancing, Wolfe Research downgraded Shopify (SHOP) to peer perform from outperform. That said, Rick Ducat notes the stock has done well over the past year...
Fiscal Year: January - December
Shopify Inc. (SHOP), listed on the NASDAQ, has a market capitalization of $. As of Jan 06, 2026, the stock is trading at $168.45 per share, offering investors a clear view of its current market value. Shopify Inc. is a prominent player in the industry sector, attracting both institutional and retail investors due to its performance and potential.
With a P/E ratio of 124.28, investors can assess the stock's valuation in comparison to its earnings. A P/E ratio is a crucial indicator for value investors, showing whether the stock is over or undervalued relative to its current earnings. Shopify Inc. also offers a dividend yield of N/A , making it an attractive option for income-focused investors who seek regular dividends.
Our Discounted Cash Flow (DCF) analysis reveals that Shopify Inc. (SHOP) may be overvalued compared to its intrinsic worth. However, to see the exact DCF fair value, please Login or Upgrade for access.
The proprietary SS Score for Shopify Inc. is a unique metric that analyzes the company's financial health and growth potential. The score takes into account critical factors such as revenue growth, net income, free cash flow (FCF) compound annual growth rate (CAGR), the trend of shares outstanding, and the debt-to-FCF ratio. This helps investors to make a more informed decision, as an undervalued stock might still have poor financial fundamentals.
To view the detailed SS Score for Shopify Inc., Login or Upgrade for access.
The Price to Free Cash Flow (P/FCF) ratio for Shopify Inc. is 115.24, offering insights into how much investors are paying for the company's free cash flow. A lower P/FCF ratio typically suggests that the stock is undervalued, while a higher ratio may indicate overvaluation.
In summary, Shopify Inc. (SHOP) has shown consistent financial performance, as illustrated by the financial charts above, which track its revenue growth, net income, free cash flow, and shares outstanding over the past several years. These metrics provide investors with key insights into the company's past and projected future performance. Investors should use the SS Score alongside the DCF Fair Value to make better-informed decisions about whether to buy or hold the stock.
*This analysis is for informational purposes only and does not constitute investment advice. Always read the company's 10-K filings and do your own research before making any investment decisions.
Whether Shopify Inc. (SHOP) is a good stock to buy depends on various factors, including its financial health, market conditions, and your investment strategy. Our analysis indicates that the stock may be overvalued compared to its intrinsic value. However, it is important to assess the SS Score and review the company's fundamentals before making any investment decisions.
The fair value of Shopify Inc. (SHOP) is determined through our Discounted Cash Flow (DCF) analysis. This value represents the intrinsic worth of the stock based on its expected future cash flows. To view the specific fair value, consider subscribing to our service for complete access.
The SS Score is a proprietary financial quality metric that assesses factors such as revenue growth, net income, free cash flow growth, and debt levels. It helps investors evaluate the overall financial health of Shopify Inc.. To access the full SS Score, consider upgrading your subscription.
Shopify Inc. is a significant player in the industry sector, with a market capitalization of $ and a competitive P/E ratio of 124.28. Investors should compare these metrics with industry peers to gauge whether Shopify Inc. is outperforming or underperforming within its sector.
As a part of its internet stock analytical rebalancing, Wolfe Research downgraded Shopify (SHOP) to peer perform from outperform. That said, Rick Ducat notes the stock has done well over the past year...
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Shopify Inc. (SHOP) Presents at 53rd Annual Nasdaq Investor Conference Transcript
Shopify Inc's (NASDAQ: SHOP) latest Winter 2026 Edition showcases the company's continued push to strengthen its platform across artificial intelligence, checkout, marketing, and merchant tools.
Uber has launched a collaboration with Shopify aimed at speeding delivery for merchants. The partnership makes Uber Direct available to Shopify Plus merchants in the U.S., Canada, and France, allowing...
Shopify is rated a 'Buy' with a $185 price target, implying 15% upside and continued market outperformance. Q3 2025 results showed 32% revenue growth and strong free cash flow, but a post-earnings sel...
I am reiterating my “buy” rating on Shopify with an updated price target of $195 per share as revenue continues to beat management's guidance by a huge margin. During the quarter, Shopify continued to...
AUSTIN, Texas--(BUSINESS WIRE)--Recurly, the subscription growth platform, today announced an expanded investment in the Shopify ecosystem as ecommerce brands increasingly shift toward recurring reven...
Shopify (NASDAQ: SHOP) has silently evolved into one of the most compelling turnaround stories on Wall Street. The stock has increased by nearly 47% over the last six months and is currently priced cl...
Shopify (NASDAQ: SHOP) has silently evolved into one of the most compelling turnaround stories on Wall Street. The stock has increased by nearly 47% over the last six months and is currently priced cl...
Shopify Inc. (SHOP) Presents at UBS Global Technology and AI Conference 2025 Transcript
The three major indexes broke five-day winning streaks. Apple's head of artificial intelligence is stepping down.
Internet, Everywhere--(Newsfile Corp. - December 2, 2025) - Shopify Inc. (NASDAQ: SHOP) (TSX: SHOP) announced today that merchants achieved a record $14.6 billion in sales* over Black Friday-Cyber Mon...
Shopify experienced an outage on Cyber Monday, disrupting merchant transactions. The outage mainly affected business login and point-of-sale systems.
Shopify President Harley Finkelstein discusses what shoppers around the world have been buying over Black Friday and Cyber Monday and what that has meant for the e-commerce company. He joins Caroline ...
What should have been a Cyber Monday victory lap for Shopify turned into a mid‑day nightmare as merchants worldwide lost access to their admin dashboards and point‑of‑sale systems on one of the busies...
Earlier today, Shopify faced a major outage that disrupted the operations of numerous merchants, leaving them unable to fulfill transactions.
The outage at the e-commerce host interrupted transactions for merchants who use Shopify's technology to sell products online.
Shopify President Harley Finkelstein says that Black Friday sales surged 25% to $6.2 billion, driven by nearly 70 million shoppers, strong U.S. demand, rising cross-border orders and a shift toward ho...
Below estimates were sourced from SimplyWallSt and are intended for educational purposes only as a baseline for the analysis.
| Year | FCF Estimate | % | # Analysts |
|---|---|---|---|
| 2025 | 2.11B | 32.35% | Est @32.3% |
| 2026 | 2.63B | 24.44% | Analyst x26 |
| 2027 | 3.29B | 25.04% | Analyst x16 |
| 2028 | 4.30B | 30.70% | Analyst x4 |
| 2029 | 5.56B | 29.46% | Analyst x4 |
| 2030 | 7.07B | 27.08% | Analyst x4 |
| 2031 | 7.94B | 12.26% | Est @12.3% |
| 2032 | 8.68B | 9.32% | Est @9.3% |
| 2033 | 9.31B | 7.25% | Est @7.3% |
| 2034 | 9.81B | 5.42% | Est @5.4% |
Below are the FCF estimates with the discount factor and the calculated present value with the terminal value that led the results above.
| Year | FCF | Discount Factor | PV of Future FCF |
|---|---|---|---|
| 2023A | 905.00M | 1.00 | 905.00M |
| 2024A | 1.60B | 1.00 | 1.60B |
| 2025E | 2.11B | 1.12 | 1.88B |
| 2026E | 2.63B | 1.27 | 2.08B |
| 2027E | 3.29B | 1.42 | 2.31B |
| 2028E | 4.30B | 1.60 | 2.69B |
| 2029E | 5.56B | 1.80 | 3.09B |
| 2030E | 7.07B | 2.03 | 3.49B |
| 2031E | 7.94B | 2.28 | 3.48B |
| 2032E | 8.68B | 2.56 | 3.39B |
| 2033E | 9.31B | 2.88 | 3.23B |
| 2034E | 9.81B | 3.24 | 3.03B |
| Terminal | 100.75B | 3.24 | 31.07B |
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