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Shopify (NYSE:SHOP) Enterprise Value

: $60,064 Mil (As of Today)
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Think of Enterprise Value as the theoretical takeover price. It is more comprehensive than market capitalization (Market Cap), which only includes common equity. Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.

EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, Shopify's Enterprise Value is $60,064 Mil. Shopify's EBIT for the trailing twelve months (TTM) ended in Sep. 2022 was $-3,496 Mil. Therefore, Shopify's EV-to-EBIT ratio for today is -17.18.

EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA. As of today, Shopify's Enterprise Value is $60,064 Mil. Shopify's EBITDA for the trailing twelve months (TTM) ended in Sep. 2022 was $-3,413 Mil. Therefore, Shopify's EV-to-EBITDA ratio for today is -17.60.

EV-to-Revenue is calculated as Enterprise Value divided by its Revenue. As of today, Shopify's Enterprise Value is $60,064 Mil. Shopify's Revenue for the trailing twelve months (TTM) ended in Sep. 2022 was $5,245 Mil. Therefore, Shopify's EV-to-Revenue ratio for today is 11.45.


Shopify Enterprise Value Historical Data

The historical data trend for Shopify's Enterprise Value 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.

* Premium members only.

Shopify Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Enterprise Value
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9,166.06 13,339.11 43,986.35 133,221.63 166,814.66

Shopify Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
Enterprise Value Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 163,833.56 166,814.66 79,212.30 33,689.18 30,625.67

Competitive Comparison

For the Software - Application subindustry, Shopify's Enterprise Value, along with its competitors' market caps and Enterprise Value 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 Enterprise Value Distribution

For the Software industry and Technology sector, Shopify's Enterprise Value distribution charts can be found below:

* The bar in red indicates where Shopify's Enterprise Value falls in comparison to its industry or sector. The grey bar indicates the Enterprise Value's extreme value range as defined by GuruFocus.



Shopify Enterprise Value Calculation

Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.

Shopify's Enterprise Value for the fiscal year that ended in Dec. 2021 is calculated as

Shopify's Enterprise Value for the quarter that ended in Sep. 2022 is calculated as

* 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  (NYSE:SHOP) Enterprise Value Explanation

When an investor buy a company, the investor needs to pay not only the common shares, he/she also needs to pay the shareholders of Preferred Stocks. He also assumes the debt of the company, and receives the cash on the company's balance sheet.

If a company has more cash than debt, the investor actually pays less than the Market Cap because he immediately owns the cash once the transaction goes through.

The market value of Preferred Stock needs to be added to the market value of common stocks in the calculation of Enterprise Value.

For the companies with the same Market Cap, the smaller the Enterprise Value is, the cheaper the company is.

Enterprise Value can be negative when the company's net cash is more than its Market Cap. In this case the investor is basically getting the company for free and get paid for that.

1. EV-to-EBIT is calculated as Enterprise Value divided by its EBIT.

Shopify's EV-to-EBIT for today is

EV-to-EBIT=Enterprise Value (Today)/EBIT (TTM)
=60063.678/-3495.809
=-17.18

Shopify's current Enterprise Value is $60,064 Mil.
Shopify's EBIT for the trailing twelve months (TTM) ended in Sep. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $-3,496 Mil.

2. EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA.

Shopify's EV-to-EBITDA for today is:

EV-to-EBITDA=Enterprise Value (Today)/EBITDA(TTM)
=60063.678/-3412.87
=-17.60

Shopify's current Enterprise Value is $60,064 Mil.
Shopify's EBITDA for the trailing twelve months (TTM) ended in Sep. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $-3,413 Mil.

3. EV-to-Revenue is calculated as Enterprise Value divided by its Revenue.

Shopify's EV-to-Revenue for today is:

EV-to-Revenue=Enterprise Value (Today)/Revenue (TTM)
=60063.678/5244.91
=11.45

Shopify's current Enterprise Value is $60,064 Mil.
Shopify's Revenue for the trailing twelve months (TTM) ended in Sep. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $5,245 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 Enterprise Value Related Terms

Thank you for viewing the detailed overview of Shopify's Enterprise Value provided by GuruFocus.com. Please click on the following links to see related term pages.


Shopify (NYSE:SHOP) Business Description

Shopify logo
Traded in Other Exchanges
Address
151 O'Connor Street, Ground Floor, Ottawa, ON, CAN, K2P2L8
Shopify offers an e-commerce platform primarily to small and midsize businesses. The firm has two segments: subscription solutions (43% of fiscal 2018 revenue) and merchant solutions (57% of fiscal 2018 revenue). 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. Merchant solutions are add-on products for the platform that facilitate e-commerce and include Shopify Payments, Shopify Shipping, and Shopify Capital.

Shopify (NYSE:SHOP) Headlines

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