On May 28, 2026, Shopify Inc SHOP shares rose 7.9% today, bringing the current price to $115.03. The stock has experienced a 52-week range between $94.00 and $182.19, highlighting significant volatility in its price performance.
- GF Valueâ„¢ verdict indicates that the stock is priced at $115.03, which represents a 17.6% upside to its GF Valueâ„¢ of $139.66.
- GF Scoreâ„¢ stands at 85/100, suggesting a strong overall assessment based on key financial metrics.
- Notable signal includes a Financial Strength rating of 8/10, indicating robust financial health.
Is SHOP Overvalued or Undervalued?
With a current price of $115.03 and a GF Valueâ„¢ of $139.66, Shopify Inc appears to be undervalued by approximately 17.6%. This margin of safety provides an opportunity for potential gains, particularly as the stock trades below its intrinsic value. The GF Valuation label describes Shopify as "Modestly Undervalued," which suggests that there is room for price appreciation as market conditions evolve. GF Valueâ„¢ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
While the undervaluation indicates potential upside, it is essential to note that market conditions and investor sentiment can influence stock prices significantly. Thus, while the opportunity exists, potential investors should remain cautious of the risks involved in the current market climate.
How Does SHOP's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 113.9x | 81.4x |
| Forward P/E | 62.8x | N/A |
Shopify's current P/E ratio of 113.9x is significantly above its 5-year median P/E of 81.4x, indicating that the stock is trading at a premium compared to its historical valuation. This analysis aligns with the GF Valueâ„¢ verdict, suggesting that while the stock may be undervalued based on intrinsic value, it is priced higher than historical norms, which could indicate overvaluation in terms of earnings multiples.
What Does SHOP's GF Scoreâ„¢ Tell Us?
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 85/100 |
| Financial Strength | 8/10 |
| Profitability | 5/10 |
| Growth | 9/10 |
| Valuation | 8/10 |
| Momentum | 7/10 |
The GF Scoreâ„¢ of 85/100 indicates that Shopify is positioned favorably in terms of financial metrics. Its strongest area is Growth, with a score of 9/10, suggesting significant potential for revenue and earnings expansion. Financial Strength also stands out with a rating of 8/10, reflecting solid fundamentals. However, Profitability at 5/10 is relatively weaker, indicating that while Shopify is growing, it faces challenges in converting that growth into profits effectively.
What Are Insiders Doing with SHOP Stock?
In the last three months, there have been no insider transactions reported for Shopify Inc. This lack of insider activity might suggest that company executives and board members are not currently making personal investments in the stock, which can sometimes indicate a lack of confidence in the company’s short-term prospects. However, it can also mean that insiders believe the stock is fairly valued and are biding their time before making any transactions.
What This Means for Investors
Based on the GF Valueâ„¢ assessment, Shopify Inc is currently undervalued, presenting a potential opportunity for investment. However, investors should consider the high P/E ratio compared to historical values as a risk factor. Overall, the stock offers both potential rewards and risks that must be carefully evaluated.
For the complete analysis, visit the Shopify Inc SHOP stock page. You can also explore the GF Valueâ„¢ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions
What is SHOP's GF Scoreâ„¢?
SHOP's GF Scoreâ„¢ is 85/100, indicating a strong overall assessment based on financial strength, growth potential, valuation, and momentum.
Is SHOP overvalued or undervalued?
According to GF Valueâ„¢, SHOP is undervalued, with a current price that is 17.6% below its estimated intrinsic value.
What is SHOP's P/E ratio?
SHOP's P/E (TTM) is 113.9x, which is significantly above its 5-year median P/E of 81.4x, indicating that it is trading at a premium compared to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
