Latest Ratios: P/E Ratio 157.2x · EV/EBITDA 127.0x · 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 | $191.7B | $210.1B | $138.4B | $100.9B | $44.0B | $175.4B | $139.8B | $44.9B | $14.6B | $9.7B | $3.6B |
| Enterprise Value | $190.4B | $208.7B | $138.0B | $100.7B | $43.7B | $174.1B | $138.0B | $44.4B | $14.2B | $9.5B | $3.5B |
| P/E Ratio → | 157.17 | 171.24 | 68.60 | 779.00 | — | 60.68 | 435.37 | — | — | — | — |
| P/S Ratio | 16.59 | 18.18 | 15.58 | 14.29 | 7.85 | 38.04 | 47.71 | 28.47 | 13.63 | 14.37 | 9.25 |
| P/B Ratio | 14.31 | 15.59 | 11.97 | 11.13 | 5.33 | 15.76 | 21.83 | 14.90 | 7.00 | 9.66 | 8.77 |
| P/FCF | 95.52 | 104.66 | 86.66 | 111.51 | — | 361.77 | 364.93 | 5468.12 | — | — | — |
| P/OCF | 94.30 | 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 | 127.00 | 139.23 | 124.23 | — | — | 519.78 | 861.13 | — | — | — | — |
| EV / EBIT | 129.68 | 138.31 | 106.00 | 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 | 0.6% | 0.6% | 1.5% | 0.1% | — | 1.6% | 0.2% | — | — | — | — |
| FCF Yield | 1.0% | 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 157.2x. The historical average is 100.2x. This places it at the 67th percentile of its historical range.
Shopify Inc.'s current EV/EBITDA is 127.0x. 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 157.2x. 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
Margin compression from mix
Metrics are mathematically derived from official filings.
Premium Pricing for Accelerating Growth
Shopify trades at 156.9x trailing earnings and 80.5x forward earnings, per recent filings, implying investors expect sustained high growth. The PEG of 5.35 suggests the market prices in aggressive expansion beyond current fundamentals.
The forward P/E of 80.5x is more than double the sector median, indicating the market is paying a substantial premium for Shopify's growth trajectory. This premium appears justified only if revenue growth remains above 30% and operating margins continue to expand. Investors should monitor whether the current valuation leaves room for error if growth decelerates or margins compress further.
Margin Mix Shift Pressures Gross Profit
Gross margin declined from 51.4% in 2024Q1 to 47.7% in 2026Q2, as reported in financial statements, reflecting a shift toward lower-margin merchant solutions. Operating margin improved to 13.6%, but net margin volatility obscures true earning power.
The 370 basis point gross margin erosion suggests a structural mix shift toward payments and other lower-margin services, which may continue as Shopify scales. Operating leverage is evident as operating margin expanded from 4.6% to 13.6% over the same period, but net margin swings from -28.9% to 41.9% indicate non-operating items distort reported profitability. Adjusted operating income may be a more reliable measure of core earning power.
ROIC Lags Despite Strong ROE
ROE reached 11.9% in 2026Q2, but ROIC remains low at 3.3%, according to reported figures, indicating that returns on invested capital are not yet compounding at a rate commensurate with the company's growth. The gap suggests capital efficiency is still developing.
ROE has improved from negative levels in early 2024 to double digits, driven by retained earnings turning positive and minimal leverage. However, ROIC has hovered between 0.7% and 4.1% over the past ten quarters, reflecting a large cash and investment base that earns relatively low returns. As Shopify scales, investors should watch whether ROIC converges toward ROE, which would signal more efficient capital deployment.
Working Capital Efficiency Improves
Cash conversion cycle improved to 22 days in 2025Q4 from 22 days in 2024Q4, per reported data, with DSO declining from 56 to 37 days by 2026Q2. This suggests better receivables management, though DPO remains volatile.
The reduction in DSO from 70 days in 2026Q1 to 37 days in 2026Q2 indicates improved collection efficiency, possibly due to changes in payment processing. DPO has fluctuated between 31 and 57 days, suggesting variable supplier payment terms. Asset turnover remains low at 0.25, consistent with an asset-light model, but the improving CCC indicates working capital is becoming less of a drag on cash flow.
Minimal Debt Masks Convertible Risk
Debt-to-equity fell to 0.01 in 2026Q2 from 0.13 in 2024Q1, with D/EBITDA at 0.36, as per balance sheet data, indicating a nearly debt-free balance sheet. However, the remaining debt may carry conversion features that could dilute shareholders.
Total debt declined from $1.1B to $178M, dramatically reducing leverage and interest coverage risk. The low D/EBITDA suggests ample capacity to service debt, but the presence of convertible notes could lead to dilution if converted. Investors should monitor the terms of any outstanding converts, as conversion could offset the benefits of low leverage.
Liquidity Buffer Remains Robust
Current ratio improved to 5.35 in 2026Q2 from 3.71 in 2024Q4, with cash at $1.7B, according to balance sheet data, indicating a strong liquidity position. Quick ratio equals current ratio, reflecting minimal inventory dependence.
The high current ratio and negligible inventory suggest Shopify can easily meet short-term obligations even under stress. The improvement from 3.71 to 5.35 indicates a growing cash cushion, likely from operating cash flow and buyback activity. This liquidity provides flexibility for investments or weathering economic downturns.
P/E Misleads on Shopify's Value
The trailing P/E of 156.9x is often misapplied to Shopify because net income is heavily influenced by non-operating items, as seen in volatile net margins. EV/Sales or EV/EBITDA may better capture the company's growth and cash generation.
Shopify's net income swings from large losses to large profits due to fair value changes and other non-operating items, making P/E unreliable. EV/EBITDA of 126.7x still appears high, but it reflects the market's pricing of future growth. Investors should focus on forward EV/Sales or price-to-FCF, which are more stable and better reflect the underlying business economics.