Shopify Valuation
| 307 Stock | EUR 106.88 2.30 2.20% |
At this time, the company appears to be overvalued. Shopify has a current Real Value of €93.69 per share. The regular price of the company is €106.88. Our model measures the value of Shopify from inspecting the company fundamentals such as Return On Equity of 0.0984, operating margin of 0.20 %, and Shares Outstanding of 1.23 B as well as reviewing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Shopify's valuation include:
Price Book 11.0103 | Enterprise Value | Enterprise Value Ebitda 73.9767 | Price Sales 11.9649 | Forward PE 60.241 |
Overvalued
Today
Please note that Shopify's price fluctuation is very steady at this time. Calculation of the real value of Shopify is based on 3 months time horizon. Increasing Shopify's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Shopify stock is determined by what a typical buyer is willing to pay for full or partial control of Shopify. Since Shopify is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Shopify Stock. However, Shopify's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 106.88 | Real 93.69 | Hype 105.54 | Naive 113.8 |
The real value of Shopify Stock, also known as its intrinsic value, is the underlying worth of Shopify Company, which is reflected in its stock price. It is based on Shopify's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Shopify's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of Shopify helps investors to forecast how Shopify stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Shopify more accurately as focusing exclusively on Shopify's fundamentals will not take into account other important factors: When choosing an evaluation method for Shopify, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using all methods to arrive at a better estimate.
Shopify Cash |
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Shopify Total Value Analysis
Shopify is presently estimated to have takeover price of 119.44 B with market capitalization of 138.27 B, debt of 918 M, and cash on hands of 6.95 B. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Shopify fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
119.44 B | 138.27 B | 918 M | 6.95 B |
Shopify Investor Information
About 74.0% of the company shares are owned by institutions such as pension funds. The company has Price/Earnings To Growth (PEG) ratio of 1.12. Shopify had not issued any dividends in recent years. The entity had 10:1 split on the 29th of June 2022. Based on the key measurements obtained from Shopify's financial statements, Shopify is performing exceptionally good at the present time. It has a great chance to report excellent financial results in March.Shopify Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Shopify has an asset utilization ratio of 63.77 percent. This implies that the Company is making €0.64 for each dollar of assets. An increasing asset utilization means that Shopify is more efficient with each dollar of assets it utilizes for everyday operations.Shopify Profitability Analysis
Based on the key profitability measurements obtained from Shopify's financial statements, Shopify is performing exceptionally good at the present time. It has a great chance to showcase excellent profitability results in March. Profitability indicators assess Shopify's ability to earn profits and add value for shareholders.Net Income | First Reported 2019-03-31 | Previous Quarter 906 M | Current Value 264 M | Quarterly Volatility 739.2 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.62 | 0.4807 |
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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 Earnings per Share Projection vs Actual
By analyzing Shopify's earnings estimates, investors can diagnose different trends across Shopify's analyst sentiment over time as well as compare current EPS estimates against different timeframes. Please be aware that the consensus of earnings estimates for Shopify is based on EPS before non-recurring items and includes expenses related to employee stock options.Shopify Ownership Allocation
Shopify shows a total of 1.23 Billion outstanding shares. The majority of Shopify outstanding shares are owned by institutional holders. These institutional investors are usually referred to as non-private investors looking to take positions in Shopify to benefit from reduced commissions. Consequently, institutions are subject to a different set of regulations than regular investors in Shopify. Please pay attention to any change in the institutional holdings of Shopify as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company owns, if the real value of the company is less than the current market value, you may not be able to make money on it.Shopify Profitability Analysis
The company reported the revenue of 8.88 B. Net Income was 2.02 B with profit before overhead, payroll, taxes, and interest of 5.55 B.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Shopify's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Shopify and how it compares across the competition.
About Shopify Valuation
The stock valuation mechanism determines Shopify's current worth on a weekly basis. Our valuation model uses a comparative analysis of Shopify. We calculate exposure to Shopify's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Shopify's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 5.1 B | 5.4 B | |
| Pretax Profit Margin | 0.13 | 0.14 | |
| Operating Profit Margin | 0.13 | 0.13 | |
| Net Profit Margin | 0.11 | 0.11 | |
| Gross Profit Margin | 0.48 | 0.62 |
Complementary Tools for Shopify Stock analysis
When running Shopify's price analysis, check to measure Shopify's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Shopify is operating at the current time. Most of Shopify's value examination focuses on studying past and present price action to predict the probability of Shopify's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Shopify's price. Additionally, you may evaluate how the addition of Shopify to your portfolios can decrease your overall portfolio volatility.
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