Shopify Inc. (SHOP) P/E Ratio History
UndervaluedTrading at 158.4x vs 5Y avg 206.2x · 72th percentile · Below historical baseline · Data 2020–2026
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P/E Ratio Analysis
As of November 7, 2026, Shopify Inc. (SHOP) trades at a price-to-earnings ratio of 158.4x, with a stock price of $148.91 and trailing twelve-month earnings per share of $1.65.
The current P/E is 23% below its 5-year average of 206.2x. Over the past five years, SHOP's P/E has ranged from a low of 50.6x to a high of 841.3x, placing the current valuation at the 72th percentile of its historical range.
Compared to the Technology sector median P/E of 28.8x, SHOP trades at a 451% premium to its sector peers. The sector includes 337 companies with P/E ratios ranging from 0.0x to 199.3x.
The PEG ratio of 5.40 (P/E divided by -39% EPS growth) suggests the stock may be expensive relative to its earnings growth. Peter Lynch popularized the rule that a PEG below 1.0 indicates an attractive entry point.
Relative to the broader market, SHOP commands a significant premium over the S&P 500 median P/E of 26.3x. Investors should consider the company's growth prospects, competitive position, and earnings quality when evaluating whether the current valuation is justified.
For a comprehensive intrinsic value estimate using discounted cash flow analysis, see our SHOP DCF Valuation Calculator →
Note: P/E ratio is just one valuation metric. It does not account for balance sheet strength, cash flow quality, or growth sustainability. Always conduct comprehensive due diligence before making investment decisions.
SHOP Cross-Benchmark Valuation
How does the current P/E compare to sector peers and the broader market?
SHOP P/E vs Peers
Commerce and Web Platforms peers sorted by market cap
| Company | Market Cap | P/E Ratio | PEG Ratio | EPS Growth (1Y) |
|---|---|---|---|---|
| $4B | 86.5 | - | -63% | |
| $15B | 18.4 | - | -3% | |
| $14B | 36.3 | - | +1% | |
| $52B | 11.0Lowest | 1.24 | +36% | |
| $7B | 110.2 | 0.84Best | +187%Best | |
| $2.8T | 36.2 | 1.29 | +30% | |
| $1.6T | 26.0 | 1.41 | -2% | |
| $3.4T | 26.3 | 0.88 | +34% |
Lower P/E can signal a discount or weaker growth expectations; PEG adds growth context.
SHOP Historical P/E Data (2020–2026)
Quarterly P/E ratios calculated from closing price and TTM EPS
| Quarter | Period End | Price | TTM EPS | P/E Ratio | vs Avg |
|---|---|---|---|---|---|
| FY2026 Q3 | Sep 30 2026 | $148.30 | $1.65 | 89.9x | -56% |
| FY2026 Q2 | - | $114.18 | $1.49 | 76.6x | -63% |
| FY2026 Q1 | - | $118.62 | $1.02 | 116.3x | -44% |
| FY2025 Q4 | Dec 31 2025 | $160.97 | $0.94 | 171.2x | -17% |
| FY2025 Q3 | - | $148.61 | $1.36 | 109.3x | -47% |
| FY2025 Q2 | Jun 30 2025 | $115.35 | $1.80 | 64.1x | -69% |
| FY2025 Q1 | Mar 31 2025 | $95.48 | $1.24 | 77.0x | -63% |
| FY2024 Q4 | - | $106.33 | $1.56 | 68.2x | -67% |
| FY2024 Q3 | Sep 30 2024 | $80.14 | $1.07 | 74.9x | -64% |
| FY2024 Q2 | Jun 30 2024 | $66.05 | $0.98 | 67.4x | -67% |
| FY2023 Q4 | Dec 31 2023 | $77.90 | $0.09 | 841.3x | +308% |
| FY2022 Q1 | - | $67.60 | $0.12 | 563.3x | +173% |
| FY2021 Q4 | Dec 31 2021 | $137.74 | $2.28 | 60.4x | -71% |
| FY2021 Q3 | - | $135.58 | $2.68 | 50.6x | -75% |
| FY2021 Q2 | Jun 30 2021 | $146.10 | $1.93 | 75.7x | -63% |
| FY2021 Q1 | Mar 31 2021 | $110.65 | $1.27 | 87.3x | -58% |
| FY2020 Q4 | - | $113.19 | $0.25 | 450.8x | +119% |
| FY2020 Q3 | Sep 30 2020 | $102.30 | $0.15 | 668.2x | +224% |
Average P/E for displayed period: 206.2x
SHOP Chart Terminal
Live VCP patterns, Cup & Handle overlays, support/resistance, and AI trade plans.
Live Breakouts Feed
High-probability breakout stocks crossing their pivot across 5 pattern engines.
SHOP Stock Analysis
Bull/bear thesis, analyst target revisions, and earnings execution.
Intrinsic Valuation
DCF models, multiple analysis, and analyst estimates.
Historical Returns
6+ years return with dividends reinvested.
Peer Comparison
Compare growth, multiples, and margins vs sector.
SHOP — Frequently Asked Questions
Quick answers to the most common questions about buying SHOP stock.
What is SHOP's P/E ratio?
Shopify Inc. (SHOP) trailing twelve-month P/E ratio is 158.4x, based on TTM diluted EPS of $1.65. The 5-year average P/E is 206.2x and the historical range spans 50.6x to 841.3x.
Is SHOP stock overvalued or undervalued?
SHOP trades at 158.4x P/E, below its 5-year average of 206.2x. At the 72th percentile of its historical range (50.6x–841.3x), the stock is priced at a discount to its own history.
Is SHOP stock expensive?
No, SHOP is not expensive on a historical basis. The current P/E of 158.4x is below the 5-year average of 206.2x and sits at the 72th percentile of its valuation range.
What is SHOP's historical P/E range?
Over the past 5 years, SHOP's P/E ratio has ranged from 50.6x to 841.3x, with a median of 87.3x and an average of 206.2x. The current P/E of 158.4x places the stock at the 72th percentile of this range. Full historical data spans 2020–2026.
How does SHOP's P/E compare to the S&P 500?
SHOP trades at 158.4x P/E versus the S&P 500 median of 26.3x. The 502% premium to the market typically reflects higher expected earnings growth or quality.
How does SHOP's valuation compare to Technology peers?
Shopify Inc. P/E of 158.4x compares to the Technology sector median of 28.8x. The premium reflects expected growth above peers or stronger fundamentals. See the peer comparison table on this page for ticker-by-ticker P/E and PEG.
What is SHOP's PEG ratio?
SHOP PEG ratio is 5.40, based on a P/E of 158.4x and EPS growth of -39.4%. A PEG above 2.0 indicates a premium valuation relative to earnings growth — typically considered expensive.
What is SHOP's earnings yield?
SHOP earnings yield is 0.63%, the inverse of its 158.4x P/E ratio. Earnings yield represents the percentage of each dollar invested that the company earns. It can be compared directly to bond yields to assess relative attractiveness of stocks versus fixed income.