Shopify Inc. (SHOP) Financial Ratios
13 years of historical data (2013–2025) · Technology · Software - Application
EV/EBITDA
↓
90.43
↓-65% vs avg
5yr avg: 261.08
P/FCF
↓
68.21
↓-59% vs avg
5yr avg: 166.15
30Y Low86.7·High111.5
P/B Ratio
↓
10.21
↓-15% vs avg
5yr avg: 11.96
30Y Low5.3·High21.8
ROE
↓
9.8%
↓+73% vs avg
5yr avg: 5.7%
30Y Low-36%·High33%
Debt/EBITDA
↓
0.13
↓-92% vs avg
5yr avg: 1.55
30Y Low0.1·High5.7
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
SHOP Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Shopify Inc. trades at 112.2x earnings, 58% below its 5-year average of 269.9x, sitting at the 67th percentile of its historical range. Compared to the Technology sector median P/E of 27.2x, the stock trades at a premium of 312%. On a free-cash-flow basis, the stock trades at 68.2x P/FCF, 59% below the 5-year average of 166.2x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $136.9B | $210.1B | $138.4B | $100.9B | $44.0B | $175.4B | $139.8B | $44.9B | $14.6B | $9.7B | $3.6B |
| Enterprise Value | $135.6B | $208.7B | $138.0B | $100.7B | $43.7B | $174.1B | $138.0B | $44.4B | $14.2B | $9.5B | $3.5B |
| P/E Ratio → | 112.17 | 171.24 | 68.60 | 779.00 | — | 60.68 | 435.37 | — | — | — | — |
| P/S Ratio | 11.85 | 18.18 | 15.58 | 14.29 | 7.85 | 38.04 | 47.71 | 28.47 | 13.63 | 14.37 | 9.25 |
| P/B Ratio | 10.21 | 15.59 | 11.97 | 11.13 | 5.33 | 15.76 | 21.83 | 14.90 | 7.00 | 9.66 | 8.77 |
| P/FCF | 68.21 | 104.66 | 86.66 | 111.51 | — | 361.77 | 364.93 | 5468.12 | — | — | — |
| P/OCF | 67.34 | 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
SHOP EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Shopify Inc.'s enterprise value stands at 90.4x EBITDA, 65% below its 5-year average of 261.1x. The Technology sector median is 17.3x, placing the stock at a 423% premium on an enterprise-value basis.
| 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 | 90.43 | 139.23 | 124.23 | — | — | 519.78 | 861.13 | — | — | — | — |
| EV / EBIT | 92.34 | 142.17 | 106.00 | 1360.23 | — | 55.42 | 554.21 | — | — | — | — |
| EV / FCF | — | 103.99 | 86.42 | 111.22 | — | 359.03 | 360.25 | 5407.50 | — | — | — |
SHOP Profitability
Margins and return-on-capital ratios measuring operating efficiency
Shopify Inc. earns an operating margin of 12.7%. Operating margins have expanded from -20.1% to 12.7% over the past 3 years, signaling improving operational efficiency. ROE of 9.8% is modest. ROIC of 9.4% represents adequate returns on invested capital.
Margins
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% |
Return on Capital
| 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% |
SHOP Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Shopify Inc. carries a Debt/EBITDA ratio of 0.1x, which is very conservative (96% below the sector average of 2.9x). The company holds a net cash position — cash of $1.5B exceeds total debt of $188M, providing substantial financial flexibility for buybacks, acquisitions, or weathering downturns.
| 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)
SHOP Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
Shopify Inc.'s current ratio of 5.96x is well above the 1.0 safety threshold, indicating strong short-term liquidity with ample room to cover current liabilities. The current ratio has declined from 6.99x to 5.96x over the past 3 years.
| 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 |
SHOP Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Shopify Inc. does not currently pay a dividend and has no material buyback yield, reinvesting earnings back into the business. The earnings yield of 0.9% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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 | — | — | — | — | — | — | — | — | — | — | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 0.9% | 0.6% | 1.5% | 0.1% | — | 1.6% | 0.2% | — | — | — | — |
| FCF Yield | 1.5% | 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 |
Peer Comparison
Compare SHOP with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 SHOPYou | $137B | 112.2 | 90.4 | 68.2 | 48.1% | 12.7% | 9.8% | 9.4% | 0.1 |
 WIX | $4B | 85.0 | 162.0 | 7.1 | 68.1% | 0.1% | — | 0.2% | 47.8 |
 GDDY | $11B | 13.7 | 10.6 | 7.2 | 61.6% | 22.9% | 192.9% | 26.2% | 2.9 |
 CART | $11B | 25.4 | 16.7 | 17.1 | 75.3% | 14.5% | 13.4% | 21.9% | 0.0 |
 PYPL | $43B | 8.6 | 6.3 | 7.6 | 46.6% | 18.3% | 25.7% | 15.0% | 1.4 |
 BILL | $4B | 161.2 | 486.5 | 11.8 | 81.4% | -5.5% | 0.6% | -1.4% | 200.5 |
 GLBE | $5B | 80.1 | 54.8 | 18.8 | 45.3% | 7.4% | 7.5% | 7.7% | 0.5 |
 KVYO | $5B | -143.7 | — | 25.4 | 74.7% | -5.5% | -2.8% | -22.2% | — |
 AMZN | $3.0T | 38.3 | 20.7 | 384.3 | 50.3% | 11.2% | 22.3% | 14.7% | 1.0 |
 META | $1.6T | 26.1 | 15.7 | 33.7 | 82.0% | 41.4% | 30.2% | 27.6% | 0.8 |
 GOOGL | $4.8T | 36.8 | 32.2 | 65.7 | 59.7% | 32.1% | 35.7% | 25.1% | 0.4 |
| Technology Median | — | 27.2 | 17.3 | 19.8 | 48.9% | -0.6% | 2.5% | 3.0% | 2.9 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 13 years · Updated daily
Full SHOP Stock Analysis
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Start ComparisonSHOP — Frequently Asked Questions
Quick answers to the most common questions about buying SHOP stock.
What is Shopify Inc.'s P/E ratio?
Shopify Inc.'s current P/E ratio is 112.2x. The historical average is 100.2x. This places it at the 67th percentile of its historical range.
What is Shopify Inc.'s EV/EBITDA?
Shopify Inc.'s current EV/EBITDA is 90.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA.
What is Shopify Inc.'s ROE?
Shopify Inc.'s return on equity (ROE) is 9.8%. The historical average is -3.1%.
Is SHOP stock overvalued?
Based on historical data, Shopify Inc. is trading at a P/E of 112.2x. This is at the 67th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What are Shopify Inc.'s profit margins?
Shopify Inc. has 48.1% gross margin and 12.7% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does Shopify Inc. have?
Shopify Inc.'s Debt/EBITDA ratio is 0.1x, indicating low leverage. A ratio below 2x is generally considered financially healthy.