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ShopifySHOP +3.83%85 EV-to-OCF is 70.84 as of Aug. 04, 2026, which is 74% below its 10-year median of 269.23. GuruFocus rates SHOP with a GF Score™ of 85/100 and a GF Value™ of $146.48 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 2,879 Software companies, Shopify ranks worse than 93.09% on this metric.
EV-to-OCF is calculated as enterprise value divided by its cash flow from operations. As of today, Shopify's Enterprise Value is $152,088 Mil.
Shopify's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was $2,147 Mil. Therefore, Shopify's EV-to-OCF for today is 70.84.
The historical rank and industry rank for Shopify's EV-to-OCF or its related term are showing as below:
SHOP'
s EV-to-OCF Range Over the Past 10 Years
Min: -7283.7 Med: 269.23 Max: 7717.84
Current: 70.84
During the past 13 years, the highest EV-to-OCF of Shopify was 7717.84. The lowest was -7283.70. And the median was 269.23.
SHOP's EV-to-OCF is ranked worse than 93.09% of 2879
companies
in the Software industry
Industry Median: 6.68
vs SHOP: 70.84
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Shopify's share price for today is $121.49.
Shopify's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $1.013.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Shopify EV-to-OCF Related Terms
Shopify EV-to-OCF Historical Data
* Premium members only.
The historical data trend for Shopify's EV-to-OCF can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Software - Application subindustry, Shopify's EV-to-OCF, along with its competitors' market caps and EV-to-OCF data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Shopify EV-to-OCF vs Software Industry
For the Software industry and Technology sector, Shopify's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where Shopify's EV-to-OCF falls into.
Shopify's current Enterprise Value is $152,088 Mil.
Shopify's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $2,147 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Shopify (SHOP) has a EV-to-OCF of 70.84 as of Aug. 04, 2026. This is 74% below median its historical median of 269.23. According to the industry distribution chart, Shopify ranks #2680 out of 2879 companies in the Software industry, placing it in the top 93.1%.
Is Shopify's EV-to-OCF too high?
Shopify's current EV-to-OCF of 70.84 is 74% below median its 10-year median of 269.23. The Software industry median EV-to-OCF is 6.68. Shopify's value of 70.84 is 960.5% above this industry median. Based on the distribution chart, Shopify ranks #2680 out of 2879 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Shopify has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shopify's EV-to-OCF compare to UBER and CRM?
According to the Software industry distribution chart, Shopify ranks #2680 out of 2879 companies for EV-to-OCF. This places Shopify in the lower half of its industry. The industry median EV-to-OCF is 6.68. Shopify's value of 70.84 is 960.5% above this benchmark. While the company's 10-year median is 269.23 vs. the industry median of 6.68, Shopify has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-OCF for a Software company?
The median EV-to-OCF among Software companies is 6.68, based on 2,879 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-OCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-OCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Shopify's current EV-to-OCF of 70.84 is 960.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the Software industry, the median EV-to-OCF is 6.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shopify's current EV-to-OCF is 70.84, which is 74% below median its own 10-year median of 269.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shopify stock overvalued right now?
Based on GuruFocus' analysis, Shopify (SHOP) is currently considered Modestly Undervalued. The stock's GF Value™ is $146.48, compared to a current price of $121.49 — trading 17.1% below its estimated fair value. The current EV-to-OCF is 70.84, which is 74% below median its 10-year median of 269.23 and 960.5% above the Software industry median of 6.68. Shopify's overall GF Score™ is 85/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For Shopify (SHOP), the current EV-to-OCF is 70.84 as of Aug. 04, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Shopify (SHOP) Overvalued in 2026?
Based on GuruFocus' analysis, Shopify stock appears to be undervalued.
The current stock price of $121.49 is trading 17.1% below its estimated GF Value™ of $146.48.
GuruFocus considers Shopify to be Modestly Undervalued.
Key valuation signals for SHOP:
EV-to-OCF: 70.84 (74% below median its 10-year median of 269.23)
GF Value™: $146.48 vs. price of $121.49 (17.1% below fair value)
Industry Position: 960.5% above the Software median (#2680 of 2879)
No single metric tells the full story. See the SHOP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shopify offers an e-commerce platform primarily to small and medium-size businesses. The firm has two segments. The subscription solutions segment allows Shopify merchants to conduct e-commerce on a variety of platforms, including the company's website, physical stores, pop-up stores, kiosks, social networks (Facebook), and Amazon. The merchant solutions segment offers add-on products for the platform that facilitate e-commerce and include Shopify Payments, Shopify Shipping, and Shopify Capital.
85GF Score
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