Shopify Inc. Class A subordinate voting shares (SHOP) Valuation
Historical valuation analysis based on 1279 data points (2021-09-14 to 2026-10-16)
Shopify offers an e-commerce platform primarily to small and medium-size businesses. The firm has two segments. The subscription solutions segment allows Shopify merchants to conduct e-commerce on...
Shopify Inc. Class A subordinate voting shares (SHOP) currently trades at a P/E ratio of 113.13 (historical range: 11.60–210.22, median: 62.76), placing it at the 86th percentile — expensive relative to its history, P/S ratio of 16.44 (range: 4.44–188.92, 73th percentile — above its historical average), EV/EBITDA of 115.70 (range: 26.36–9706.69, 57th percentile).
Over the historical period (2021-09-14 to 2026-10-16), Shopify Inc. Class A subordinate voting shares's P/E ratio has expanded by 84% over the observed period (from an average of 47.9 to 88.2).
Shopify Inc. Class A subordinate voting shares trades above its historical valuation range, with most metrics above their median levels.
Historical Valuation Metrics
| Metric | Current | Median | %ile | Assessment |
|---|---|---|---|---|
| P/E Ratio | 113.13 | 62.76 | 86th | expensive relative to its history |
| P/S Ratio | 16.44 | 13.46 | 73th | above its historical average |
| EV/EBITDA | 115.70 | 102.11 | 57th | near its historical average |
| FCF Yield | 1.08% | 0.97% | 59th | near its historical average |
Shopify Inc. Class A subordinate voting shares (SHOP) Valuation & P/E History
Shopify Inc. Class A subordinate voting shares (SHOP) is a US-listed stock operating in the Technology sector, specifically the Services-Prepackaged Software industry currently trading at $169.34 with a market capitalization of $217.9 billion. This page provides historical valuation analysis for SHOP based on 1279 data points covering 2021-09-14 to 2026-10-16. The P/E ratio of 113.13 is above the historical median of 62.76, placing SHOP at the 86th percentile of its valuation range. The P/S ratio of 16.44 compares to a median of 13.46.
SHOP Valuation Metrics & Historical Range
The valuation table above shows Shopify Inc. Class A subordinate voting shares's current and historical valuation multiples, including P/E ratio, P/S ratio, EV/EBITDA, FCF yield, and dividend yield. Each metric is compared to its own historical range to determine whether SHOP is currently trading above or below its typical valuation levels.
- P/E ratio: Price-to-earnings measures how much investors pay per dollar of earnings. A P/E above the historical median suggests SHOP is expensively valued; below the median suggests it is cheap.
- P/S ratio: Price-to-sales is useful for companies with volatile or negative earnings. Lower P/S relative to history may indicate value.
- EV/EBITDA: Enterprise value to EBITDA adjusts for debt and cash, providing a capital-structure-neutral valuation measure for Shopify Inc. Class A subordinate voting shares.
- FCF yield: Free cash flow yield shows the cash return relative to market price. Higher yields may indicate undervaluation.
Is SHOP Overvalued or Undervalued?
Shopify Inc. Class A subordinate voting shares trades above its historical valuation range, with most metrics above their median levels. The overall valuation percentile of 72 combines P/E, P/S, and EV/EBITDA percentiles into a single measure of how expensive SHOP is relative to its own history. A percentile below 25 suggests the stock may be undervalued, while a percentile above 75 suggests it may be overvalued.
However, valuation is only one factor in investment decisions. A stock can remain "overvalued" for years if growth accelerates, or "undervalued" if the business deteriorates. Always combine valuation analysis with financial statement analysis and the full SHOP analysis page for a complete picture.
Valuation data is computed from historical price and fundamental data via Polygon.io and Finnhub.SHOP trades on NYSE/NASDAQ. This page is for informational purposes only and is not financial advice.