Shopify EBITDA vs. Price To Sales
| SHOP Stock | CAD 149.48 0.67 0.45% |
EBITDA | First Reported 2010-12-31 | Previous Quarter -88 M | Current Value -83.6 M | Quarterly Volatility 219.7 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.64 | 0.4979 |
|
|
For Shopify profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Shopify to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Shopify utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Shopify's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Shopify over time as well as its relative position and ranking within its peers.
Shopify |
Shopify Price To Sales vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Shopify's current stock value. Our valuation model uses many indicators to compare Shopify value to that of its competitors to determine the firm's financial worth. Shopify is currently regarded as top stock in ebitda category among its peers. It also is currently regarded as top stock in price to sales category among its peers . Shopify reported last year EBITDA of (88 Million). Comparative valuation analysis is a catch-all model that can be used if you cannot value Shopify by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Shopify's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Shopify Price To Sales vs. EBITDA
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Shopify |
| = | (88 M) |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
Shopify |
| = | 23.52 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Shopify Price To Sales Comparison
Shopify is currently under evaluation in price to sales category among its peers.
Shopify Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Shopify, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Shopify will eventually generate negative long term returns. The profitability progress is the general direction of Shopify's change in net profit over the period of time. It can combine multiple indicators of Shopify, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 4 M | 4.2 M | |
| Operating Income | -1.4 B | -1.3 B | |
| Income Before Tax | 185 M | 194.2 M | |
| Total Other Income Expense Net | 22 M | 19.7 M | |
| Net Income | 132 M | 138.6 M | |
| Income Tax Expense | 53 M | 55.6 M | |
| Net Income From Continuing Ops | 132 M | 138.6 M | |
| Net Loss | -3.1 B | -3 B | |
| Interest Income | 241 M | 228.9 M | |
| Net Interest Income | 241 M | 253.1 M | |
| Change To Netincome | 3.8 B | 4 B | |
| Net Income Per Share | 0.10 | 0.11 | |
| Income Quality | 7.15 | 7.51 | |
| Net Income Per E B T | 0.71 | 1.16 |
Shopify Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Shopify. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Shopify position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Shopify's important profitability drivers and their relationship over time.
Use Shopify in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Shopify position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Shopify will appreciate offsetting losses from the drop in the long position's value.Shopify Pair Trading
Shopify Pair Trading Analysis
The ability to find closely correlated positions to Shopify could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Shopify when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Shopify - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Shopify to buy it.
The correlation of Shopify is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Shopify moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Shopify moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Shopify can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Shopify position
In addition to having Shopify in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Large Value Funds Thematic Idea Now
Large Value Funds
Funds or Etfs that invest in the undervalued stocks of large-sized companies. The Large Value Funds theme has 43 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Large Value Funds Theme or any other thematic opportunities.
| View All Next | Launch |
Check out World Market Map. To learn how to invest in Shopify Stock, please use our How to Invest in Shopify guide.You can also try the Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
To fully project Shopify's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Shopify at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Shopify's income statement, its balance sheet, and the statement of cash flows.