SHOP Shopify PE ratio, current and historical analysis
- Stocks
- Technology
- NYSE: SHOP
- PE Ratio
The P/E ratio for Shopify stock stands at 82.63 as of May 22, 2025. This takes into account the latest EPS of $1.25 and stock price of $103.29. An increase of 16% has been observed in the PE ratio compared to its average of 71.4 of the past four quarters.
SHOP PE ratio history
Over the last five years, the average PE ratio of Shopify has been 234.32. The current 82.63 price-to-earnings ratio is 65% less than the historical average. Analyzing the last five years, SHOP's PE ratio reached its highest point in the Dec 2023 quarter at 779, with a price of $77.9 and an EPS of $0.1. The Sep 2021 quarter saw the lowest point at 49.3, with a price of $135.58 and an EPS of $2.75.
Shopify PE ratio by year
Maximum annual decrease: -91.31% in 2024
| Year | PE ratio | PE change | Price | EPS |
|---|---|---|---|---|
| 2024 | 67.73 | -91.31% | $106.33 | $1.57 |
| 2023 | 779 | N/A | $77.9 | $0.1 |
| 2022 | N/A | N/A | $34.71 | -$2.73 |
| 2021 | 58.86 | -85.96% | $137.74 | $2.34 |
| 2020 | 419.24 | N/A | $113.2 | $0.27 |
| 2019 | N/A | N/A | $39.76 | -$0.11 |
| 2018 | N/A | N/A | $13.85 | -$0.06 |
| 2017 | N/A | N/A | $10.1 | -$0.04 |
| 2016 | N/A | N/A | $4.29 | -$0.04 |
| 2015 | N/A | N/A | $2.58 | -$0.03 |
| 2014 | N/A | N/A | N/A | -$0.06 |
| 2013 | N/A | N/A | N/A | -$0.01 |
| 2012 | N/A | N/A | N/A | $0 |
Shopify PE ratio by quarter (TTM)
| Year | PE ratio | PE change | Price | EPS |
|---|---|---|---|---|
| Mar 2025 | 76.38 | 12.77% | $95.48 | $1.25 |
| Dec 2024 | 67.73 | -9.57% | $106.33 | $1.57 |
| Sep 2024 | 74.9 | 12.26% | $80.14 | $1.07 |
| Jun 2024 | 66.72 | N/A | $66.05 | $0.99 |
| Mar 2024 | N/A | N/A | $77.17 | -$0.16 |
| Dec 2023 | 779 | N/A | $77.9 | $0.1 |
| Sep 2023 | N/A | N/A | $54.57 | -$0.9 |
| Jun 2023 | N/A | N/A | $64.6 | -$1.58 |
| Mar 2023 | N/A | N/A | $47.94 | -$1.51 |
| Dec 2022 | N/A | N/A | $34.71 | -$2.73 |
| Sep 2022 | N/A | N/A | $26.94 | -$2.54 |
| Jun 2022 | N/A | N/A | $31.24 | -$1.5 |
| Mar 2022 | 422.48 | 617.77% | $67.6 | $0.16 |
| Dec 2021 | 58.86 | 19.39% | $137.74 | $2.34 |
| Sep 2021 | 49.3 | -32.85% | $135.58 | $2.75 |
SHOP Price vs fair value
You can ether set your own Fair P/E multiple or use one of the automatically calculated Fair P/E multiples.
Fair P/E calculation
PE Ratio is an attempt to estimate a fair PE ratio of a stock based on its earnings and growth rate.
This formula is a modified version of the classic Graham-Dodd Formula (V= EPS x (8.5+2g)), originally developed by Benjamin Graham, to calculate the fair price of a stock based on its earnings and growth rate.
The formula we have created is an adaptation of this approach, designed to maintain a balance between simplicity and growth sensitivity.
It is calculated using the following formula:
IF g < 5: Fair PE = b
IF g >= 5: Fair PE = m × g
Here’s what each part of the formula means:
g: Growth is calculated as the average of the three-year average EPS growth rate and the one-year EPS growth rate (annually). This approach provides a balanced measure of growth by factoring in both the long-term growth trend and the most recent annual growth performance. If one of the growth metrics is not available, the remaining metric is used to determine growth. The fair P/E value is capped at 100 to prevent distortions caused by extreme EPS growth rates, such as those resulting from large percentage increases from a low base.
m: This is the long term historical median PEG (Price/Earnings to Growth) ratio of the overall market. It serves as a benchmark, adjusting the Fair PE based on typical market conditions.
b: Base PE (static value set to 8). If the company's growth rate is less than 5, the Fair PE is set at a conservative baseline of 8. This is because declining companies generally deserve a lower PE ratio.
Fixed vs Dynamic
Fixed: The Fair PE ratio for all data points is calculated using a single, constant average EPS growth rate, determined based on the most recent period. This means that the same growth rate is applied to all historical data points. Dynamic: The Fair PE ratio for each historical data point is calculated using the trailing average EPS growth rate specific to that point in time. This means that for each data point, the corresponding trailing EPS growth rate is used, ensuring that the Fair PE ratio reflects the growth conditions that were relevant at that specific point in history.
SHOP average PE ratio chart
The current PE ratio of SHOP is under its 3, 5 and 10-year averages.
SHOP PE vs peers
SHOP's PE ratio is above its peer stocks AMZN and MELI.
| Stock name | PE ratio | Market cap |
|---|---|---|
| ETSY Etsy Inc | 29.6 | $5B |
| AMZN Amazon Com Inc | 32.39 | $2.16T |
| MELI Mercadolibre Inc | 64.11 | $132.12B |
| SHOP Shopify Inc | 82.63 | $134.01B |
| EVLV Evolv Technologies Holdings Inc | N/A | $985.62M |
- Market
- Price
- Valuation
- Dividend
- Earnings
- Per share
- Balance sheet
- Liquidity
- Margins
- Efficiency
- Growth
- Market
- Price
- Valuation
- Dividend
- Earnings
- Per share
- Balance sheet
- Liquidity
- Margins
- Efficiency
- Growth
- Market
- Price
- Valuation
- Dividend
- Earnings
- Per share
- Balance sheet
- Liquidity
- Margins
- Efficiency
- Growth
Frequently asked questions
What is Shopify's PE ratio?
The price to earnings ratio for SHOP stock is 82.63 as of May 22, 2025.
What is the 3-year average PE ratio for Shopify (SHOP)?
The 3-year average PE ratio for SHOP stock is 212.95.
What is the 5-year average PE ratio for Shopify (SHOP)?
The 5-year average PE ratio for SHOP stock is 234.32.
What is the highest PE ratio for SHOP?
The highest quarterly PE ratio in the last five years has been 779 and it was in the Dec 2023 quarter.
How does the current PE ratio for SHOP compare to its historical average?
SHOP's price to earnings ratio is currently 65% below its 5-year historical average.
Why is Shopify's PE ratio so high?
A company with a higher PE ratio may indicate that the market has higher growth expectations for the company's future earnings or profitability.
How is SHOP's PE ratio calculated (Shopify PE ratio formula)?
The P/E ratio is calculated by taking the latest stock price and dividing it by the earnings per share(EPS) for the last 12 months. As of today (May 22, 2025), Shopify's share price is $103.29. The company's earnings per share for the trailing twelve months (TTM) ending Mar 2025 is $1.25. Therefore, Shopify's price to earnings ratio for today is 82.63. PE RATIO(82.63) = STOCK PRICE($103.29) / TTM EPS($1.25)
All PE ratio stats are based on quarterly TTM periods, unless otherwise specified.