Shopify Valuation
| SHOP Stock | CAD 157.67 2.41 1.55% |
At this time, the company appears to be undervalued. Shopify has a current Real Value of C$164.36 per share. The regular price of the company is C$157.67. Our model measures the value of Shopify from inspecting the company fundamentals such as Shares Outstanding of 1.21 B, operating margin of 0.14 %, and Return On Equity of 0.15 as well as reviewing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Shopify's valuation include:
Price Book 14.2288 | Enterprise Value 195.4 B | Enterprise Value Ebitda 149.64 | Price Sales 24.4291 | Forward PE 76.3359 |
Undervalued
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.
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 157.67 | Real 164.36 | Hype 154.55 |
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, news, and other external factors that may influence Shopify's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
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: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Shopify's intrinsic value based on its ongoing forecasts of Shopify's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Shopify's closest peers.
Shopify Cash |
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Shopify Valuation Trend
Knowing Shopify's actual value is paramount for traders when making sound investment determinations. Using both Shopify's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Shopify Total Value Analysis
Shopify is at this time estimated to have takeover price of 195.38 B with market capitalization of 196.74 B, debt of 1.15 B, and cash on hands of 1.65 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 |
195.38 B | 196.74 B | 1.15 B | 1.65 B |
Shopify Investor Information
About 71.0% of the company shares are owned by institutional investors. 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 doing better financially today then in previous quarter. It has a moderate chance of reporting better financial numbers in December.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 62.48 percent. This suggests that the Company is making C$0.62 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 Ownership Allocation
Shopify shows a total of 1.21 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 7.06 B. Net Income was 132 M with profit before overhead, payroll, taxes, and interest of 2.75 B.About Shopify Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Shopify. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Shopify based exclusively on its fundamental and basic technical indicators. By analyzing Shopify's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Shopify's intrinsic value. As compared to an absolute model, our relative 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 | 3.5 B | 3.7 B | |
| Pretax Profit Margin | 0.03 | 0.03 | |
| Operating Profit Margin | 0.04 | 0.04 | |
| Net Profit Margin | 0.02 | 0.02 | |
| Gross Profit Margin | 0.50 | 0.64 |
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Shopify. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. To learn how to invest in Shopify Stock, please use our How to Invest in Shopify guide.You can also try the Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.