Shopify Inc. (SHOP) P/E Ratio History
Historical price-to-earnings valuation from 2020 to 2026
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SHOP Valuation Context
How does the current P/E compare to historical and market benchmarks?
P/E Ratio Analysis
As of May 6, 2026, Shopify Inc. (SHOP) trades at a price-to-earnings ratio of 114.5x, with a stock price of $107.61 and trailing twelve-month earnings per share of $1.02.
The current P/E is 48% below its 5-year average of 221.6x. 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 63th percentile of its historical range.
Compared to the Technology sector median P/E of 26.7x, SHOP trades at a 328% premium to its sector peers. The sector includes 358 companies with P/E ratios ranging from 0.0x to 197.6x.
The PEG ratio of 3.91 (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 25.1x. 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 P/E vs Peers
P/E ratio compared to closely matched public peers
| Company | Market Cap | P/E Ratio | PEG Ratio | EPS Growth (1Y) |
|---|---|---|---|---|
| $4B | 87.5 | - | -63% | |
| $12B | 14.0 | - | -3% | |
| $12B | 27.7 | - | +113% | |
| $43B | 8.6Lowest | 0.97 | +36% | |
| $4B | 166.6 | - | +185% | |
| $5B | 81.1 | 0.62Best | +187%Best | |
| $2.9T | 38.1 | 1.36 | +30% | |
| $1.5T | 25.8 | 1.40 | -2% | |
| $4.7T | 35.9 | 1.20 | +34% |
Peers sorted by market capitalization. P/E below peers may indicate undervaluation or lower growth expectations. Consider PEG ratio for growth-adjusted comparison.
SHOP Historical P/E Data (2020–2026)
Quarterly P/E ratios calculated from closing price and TTM EPS
| Quarter | Date | Price | TTM EPS | P/E Ratio | vs Avg |
|---|---|---|---|---|---|
| FY2026 Q1 | $118.62 | $1.02 | 116.3x | -48% | |
| FY2025 Q4 | Wed Dec 31 2025 00:00:00 GM | $160.97 | $0.94 | 171.2x | -23% |
| FY2025 Q3 | $148.61 | $1.36 | 109.3x | -51% | |
| FY2025 Q2 | Mon Jun 30 2025 00:00:00 GM | $115.35 | $1.80 | 64.1x | -71% |
| FY2025 Q1 | Mon Mar 31 2025 00:00:00 GM | $95.48 | $1.24 | 77.0x | -65% |
| FY2024 Q4 | $106.33 | $1.56 | 68.2x | -69% | |
| FY2024 Q3 | Mon Sep 30 2024 00:00:00 GM | $80.14 | $1.07 | 74.9x | -66% |
| FY2024 Q2 | Sun Jun 30 2024 00:00:00 GM | $66.05 | $0.98 | 67.4x | -70% |
| FY2023 Q4 | Sun Dec 31 2023 00:00:00 GM | $77.90 | $0.09 | 841.3x | +280% |
| FY2022 Q1 | $67.60 | $0.12 | 563.3x | +154% | |
| FY2021 Q4 | Fri Dec 31 2021 00:00:00 GM | $137.74 | $2.28 | 60.4x | -73% |
| FY2021 Q3 | $135.58 | $2.68 | 50.6x | -77% |
Average P/E for displayed period: 221.6x
Full SHOP Stock Analysis
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Start ComparisonSHOP — Frequently Asked Questions
Quick answers to the most common questions about buying SHOP stock.
Is SHOP stock overvalued or undervalued?
SHOP trades at 114.5x P/E, below its 5-year average of 221.6x. At the 63th percentile of historical range, the stock is priced at a discount to its own history.
How does SHOP's valuation compare to peers?
Shopify Inc. P/E of 114.5x compares to sector median of 26.7x. The premium reflects expected growth above peers.
What is SHOP's PEG ratio?
SHOP PEG ratio is 3.91. Above 2.0 indicates premium valuation relative to growth rate. Historical P/E data spans 2020-2026.