Latest Ratios: P/E Ratio 90.4x · EV/EBITDA 91.5x · ROE 9.8%. (2013–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $193.2B | $210.1B | $138.4B | $100.9B | $44.0B | $175.4B | $139.8B | $44.9B | $14.6B | $9.7B | $3.6B |
| Enterprise Value | $191.9B | $208.7B | $138.0B | $100.7B | $43.7B | $174.1B | $138.0B | $44.4B | $14.2B | $9.5B | $3.5B |
| P/E Ratio → | 90.41 | 171.24 | 68.60 | 779.00 | — | 60.68 | 435.37 | — | — | — | — |
| P/S Ratio | 13.64 | 18.18 | 15.58 | 14.29 | 7.85 | 38.04 | 47.71 | 28.47 | 13.63 | 14.37 | 9.25 |
| P/B Ratio | 14.42 | 15.59 | 11.97 | 11.13 | 5.33 | 15.76 | 21.83 | 14.90 | 7.00 | 9.66 | 8.77 |
| P/FCF | 72.62 | 104.66 | 86.66 | 111.51 | — | 361.77 | 364.93 | 5468.12 | — | — | — |
| P/OCF | 95.05 | 103.32 | 85.64 | 106.91 | — | 327.47 | 328.87 | 636.37 | 1569.10 | 1224.31 | 256.87 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 18.06 | 15.54 | 14.26 | 7.80 | 37.75 | 47.09 | 28.16 | 13.27 | 14.18 | 9.07 |
| EV / EBITDA | 91.51 | 139.23 | 124.23 | — | — | 519.78 | 861.13 | — | — | — | — |
| EV / EBIT | 130.71 | 109.96 | 110.68 | 1360.23 | — | 55.42 | 554.21 | — | — | — | — |
| EV / FCF | — | 103.99 | 86.42 | 111.22 | — | 359.03 | 360.25 | 5407.50 | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 48.1% | 48.1% | 50.4% | 49.8% | 49.2% | 53.8% | 52.6% | 54.9% | 55.6% | 56.5% | 53.8% |
| Operating Margin | 12.7% | 12.7% | 12.1% | -20.1% | -14.7% | 5.8% | 3.1% | -8.9% | -8.6% | -7.3% | -9.5% |
| Net Profit Margin | 10.7% | 10.7% | 22.7% | 1.9% | -61.8% | 63.2% | 10.9% | -7.9% | -6.0% | -5.9% | -9.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 9.8% | 9.8% | 19.6% | 1.5% | -35.7% | 33.2% | 6.8% | -4.9% | -4.2% | -5.7% | -11.7% |
| ROA | 8.5% | 8.5% | 16.0% | 1.2% | -28.7% | 27.6% | 5.7% | -4.3% | -3.8% | -5.0% | -9.6% |
| ROIC | 9.4% | 9.4% | 8.1% | -12.7% | -6.9% | 2.8% | 1.9% | -5.0% | -5.3% | -6.1% | -12.8% |
| ROCE | 11.4% | 11.4% | 9.6% | -14.0% | -7.3% | 2.7% | 1.7% | -5.3% | -5.9% | -6.8% | -11.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.01 | 0.01 | 0.10 | 0.13 | 0.17 | 0.11 | 0.14 | 0.05 | 0.01 | 0.02 | 0.03 |
| Debt / EBITDA | 0.13 | 0.13 | 1.01 | — | — | 3.50 | 5.70 | — | — | — | — |
| Net Debt / Equity | — | -0.10 | -0.03 | -0.03 | -0.03 | -0.12 | -0.28 | -0.17 | -0.18 | -0.13 | -0.17 |
| Net Debt / EBITDA | -0.90 | -0.90 | -0.33 | — | — | -3.97 | -11.18 | — | — | — | — |
| Debt / FCF | — | -0.67 | -0.23 | -0.29 | — | -2.74 | -4.68 | -60.62 | — | — | — |
| Interest Coverage | — | — | — | — | -597.39 | 907.49 | 26.03 | — | — | — | — |
Net cash position: cash ($1.5B) exceeds total debt ($188M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 5.96 | 5.96 | 3.71 | 6.99 | 7.07 | 12.15 | 15.69 | 8.67 | 15.35 | 10.82 | 6.36 |
| Quick Ratio | 5.94 | 5.94 | 3.70 | 6.97 | 7.07 | 12.15 | 15.69 | 8.67 | 15.35 | 10.82 | 6.36 |
| Cash Ratio | 4.14 | 4.14 | 2.80 | 5.58 | 5.90 | 11.05 | 14.57 | 7.76 | 14.20 | 9.90 | 5.90 |
| Asset Turnover | — | 0.76 | 0.64 | 0.62 | 0.52 | 0.35 | 0.38 | 0.45 | 0.48 | 0.60 | 0.79 |
| Inventory Turnover | 285.76 | 285.76 | 169.54 | 186.58 | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 74.86 | 68.03 | 59.71 | 55.89 | 52.79 | 52.52 | 55.67 | 45.31 | 37.43 | 20.15 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.1% | 0.6% | 1.5% | 0.1% | — | 1.6% | 0.2% | — | — | — | — |
| FCF Yield | 1.4% | 1.0% | 1.2% | 0.9% | — | 0.3% | 0.3% | 0.0% | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $1.3B | $1.3B | $1.3B | $1.3B | $1.3B | $1.2B | $1.1B | $1.1B | $958M | $840M |
Includes 30+ ratios · 13 years · Updated daily
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Quick answers to the most common questions about buying SHOP stock.
Shopify Inc.'s current P/E ratio is 90.4x. The historical average is 100.2x. This places it at the 67th percentile of its historical range.
Shopify Inc.'s current EV/EBITDA is 91.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA.
Shopify Inc.'s return on equity (ROE) is 9.8%. The historical average is -3.1%.
Based on historical data, Shopify Inc. is trading at a P/E of 90.4x. This is at the 67th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Shopify Inc. has 48.1% gross margin and 12.7% operating margin. Operating margin between 10-20% is typical for established companies.
Shopify Inc.'s Debt/EBITDA ratio is 0.1x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Volatile GAAP earnings and multiple compression
Metrics are mathematically derived from official filings.
Premium Multiples Price in Sustained Growth
Based on the supplied valuation data, Shopify trades at a trailing P/E of 152.93, a forward P/E of 74.73, and EV/EBITDA of 123.54, multiples that require growth well beyond the recent deceleration in reported revenue to be justified.
The compression from trailing to forward P/E suggests the market is capitalizing an expected earnings recovery rather than current reported profit. A PEG of 5.22 indicates investors are paying a steep premium per unit of expected growth, which leaves limited margin for error if growth continues to moderate. Investors should monitor whether forward earnings revisions keep pace with the multiple, since the current pricing appears to leave little room for disappointment.
Operating Margin Recovery Masks Earnings Volatility
As reported in the quarterly figures, Shopify's operating margin rose from 8.6% in 2025Q1 to 15.2% in 2026Q3, while net margin swung between -28.9% and 46.0%, indicating GAAP results are driven largely by non-operating items.
Operating margin expansion across the period suggests underlying operational scaling is occurring despite a gross margin held in a 46% to 52% band. The large net margin swings appear disconnected from operating performance, which warrants further investigation into the composition of non-operating gains. Operating margin appears to be the more reliable reflection of earning power here, and investors should monitor whether the 12% to 17% operating band can be sustained.
ROIC Rebuilding Slowly From a Low Base
According to the supplied ratio data, Shopify's ROIC improved from 1.4% in 2025Q1 to 3.8% in 2026Q3, a modest recovery that remains far below the 20.7% to 26.2% ROIC reported by peers GoDaddy and Maplebear.
The ROIC trend suggests returns are rebuilding from a depressed level, with the large equity base of $12.7B likely diluting capital efficiency. ROE volatility, ranging from -6.0% to 11.9%, appears driven by non-operating items rather than core capital deployment. Investors should monitor whether ROIC can sustainably approach peer levels, as current returns do not yet demonstrate durable compounding.
Near Debt-Free Structure Limits Financial Risk
Based on reported figures, Shopify's debt-to-equity ratio fell from 0.12 in 2024Q2 to 0.01 in 2026Q3, and interest coverage is unavailable for recent periods given minimal debt outstanding.
The deleveraging trajectory suggests the balance sheet has shifted toward a structure with little refinancing exposure. Interest coverage figures are unavailable for most recent quarters, so no conclusion can be drawn about debt service comfort beyond the low absolute debt level. The current position appears to carry minimal covenant or refinancing risk based on reported figures.
Liquidity Strong but Trending Lower
According to recent filings, Shopify's current ratio declined from 7.32 in 2024Q2 to 4.86 in 2026Q3, remaining well above 1.0 even as the liability base has expanded relative to current assets.
The downward drift in the current ratio suggests current liabilities are growing faster than current assets, though the absolute level still indicates strong short-term coverage. The quick ratio tracking the current ratio closely implies inventory is not a meaningful component of current assets, consistent with an asset-light software model. Under severe stress, the cash-heavy liquidity position would likely hold, though investors should monitor the continued trend in the ratio.
Ratio Misapplication Obscures True Economics
Based on reported figures, the trailing P/E of 152.93 is the ratio most commonly misapplied to Shopify, since GAAP net income swings from a $581.0M loss to a $1.5B gain make the denominator unreliable.
Applying P/E to a company whose net income is dominated by non-operating items may obscure the underlying cash economics, which are better reflected in free cash flow margin and operating income. Stock-based compensation added back in operating cash flow may also flatter cash generation, so an adjusted FCF yield net of SBC would be a more conservative alternative. Investors should monitor whether operating margin and SBC-adjusted free cash flow converge toward the headline multiples over time.