Latest Ratios: P/E Ratio 127.8x · EV/EBITDA 103.1x · 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 | $155.9B | $210.1B | $138.4B | $100.9B | $44.0B | $175.4B | $139.8B | $44.9B | $14.6B | $9.7B | $3.6B |
| Enterprise Value | $154.6B | $208.7B | $138.0B | $100.7B | $43.7B | $174.1B | $138.0B | $44.4B | $14.2B | $9.5B | $3.5B |
| P/E Ratio → | 127.81 | 171.24 | 68.60 | 779.00 | — | 60.68 | 435.37 | — | — | — | — |
| P/S Ratio | 13.49 | 18.18 | 15.58 | 14.29 | 7.85 | 38.04 | 47.71 | 28.47 | 13.63 | 14.37 | 9.25 |
| P/B Ratio | 11.64 | 15.59 | 11.97 | 11.13 | 5.33 | 15.76 | 21.83 | 14.90 | 7.00 | 9.66 | 8.77 |
| P/FCF | 77.68 | 104.66 | 86.66 | 111.51 | — | 361.77 | 364.93 | 5468.12 | — | — | — |
| P/OCF | 76.68 | 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 | 103.10 | 139.23 | 124.23 | — | — | 519.78 | 861.13 | — | — | — | — |
| EV / EBIT | 105.28 | 142.17 | 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 | 0.8% | 0.6% | 1.5% | 0.1% | — | 1.6% | 0.2% | — | — | — | — |
| FCF Yield | 1.3% | 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 |
Consumer discretionary spending sensitivity
Based on current market data, Shopify trades at a forward P/E of 65.80, which suggests that investors are pricing in significant long-term earnings expansion that far exceeds the multiples typically assigned to traditional software peers, despite the inherent volatility in its transactional merchant services revenue stream.
The elevated P/S ratio of 13.12 indicates that the market continues to value Shopify as a high-growth platform rather than a mature utility. This valuation appears to hinge on the assumption that the company can successfully scale its enterprise-tier offerings while maintaining its dominant position in the SMB market.
According to recent financial statements, Shopify's ROIC has shown a modest recovery to 2.5% in 2026Q1, reflecting the strategic benefit of shedding capital-intensive logistics assets that previously suppressed the company's ability to generate meaningful returns on its invested capital base over the last several years.
The transition toward an asset-light model appears to be the primary driver behind this stabilization in returns. Investors should monitor whether this trend can sustain momentum as the company shifts its focus toward higher-margin software and payment processing services.
As reported in quarterly filings, Shopify's asset turnover ratio of 0.22 in 2026Q1 highlights the company's reliance on high-volume transactional throughput, which necessitates careful management of its cash conversion cycle to ensure that payment processing delays do not impact overall liquidity or operational flexibility.
The fluctuation in DSO, which reached 40 days in the most recent quarter, suggests that the company's ability to collect on merchant services is sensitive to the underlying health of its customer base. This metric warrants further investigation to determine if these shifts are structural or merely reflective of seasonal payment cycles.
Based on reported figures, Shopify maintains a current ratio of 12.38 as of 2026Q1, providing a substantial liquidity cushion that effectively insulates the firm against potential short-term shocks in consumer discretionary spending patterns that could otherwise disrupt its transactional revenue model during periods of macroeconomic uncertainty.
This liquidity position is significantly stronger than many of its peers, suggesting that the company is well-positioned to weather potential downturns without needing to access external capital markets. Such a robust balance sheet provides management with the flexibility to continue investing in product innovation even during periods of reduced merchant activity.
The P/E ratio is frequently misapplied to Shopify's business model because it fails to account for the significant non-cash stock-based compensation expenses that distort GAAP earnings, making the company appear less profitable than its underlying cash-generating capability would otherwise suggest to a casual observer.
Analysts should instead prioritize FCF margins and adjusted operating income to better gauge the true earning power of the platform. Relying solely on P/E ratios obscures the impact of the company's strategic pivot toward high-margin software and away from capital-intensive logistics operations.
Includes 30+ ratios · 13 years · Updated daily
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
See how regular investing compounds over time.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying SHOP stock.
Shopify Inc.'s current P/E ratio is 127.8x. The historical average is 100.2x. This places it at the 67th percentile of its historical range.
Shopify Inc.'s current EV/EBITDA is 103.1x. 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 127.8x. 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.