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Shopify PB Ratio

: 5.34 (As of Today)
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The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. As of today (2022-08-19), Shopify's share price is $36.86. Shopify's Book Value per Share for the quarter that ended in Jun. 2022 was $6.90. Hence, Shopify's PB Ratio of today is 5.34.

The historical rank and industry rank for Shopify's PB Ratio or its related term are showing as below:

SHOP' s PB Ratio Range Over the Past 10 Years
Min: 4.53   Med: 12.44   Max: 31.81
Current: 5.42

During the past 10 years, Shopify's highest PB Ratio was 31.81. The lowest was 4.53. And the median was 12.44.

SHOP's PB Ratio is ranked worse than
77.31% of 2547 companies
in the Software industry
Industry Median: 2.70 vs SHOP: 5.42

During the past 12 months, Shopify's average Book Value Per Share Growth Rate was -14.90% per year. During the past 3 years, the average Book Value Per Share Growth Rate was 67.10% per year. During the past 5 years, the average Book Value Per Share Growth Rate was 77.40% per year.

During the past 10 years, the highest 3-Year average Book Value Per Share Growth Rate of Shopify was 98.00% per year. The lowest was 67.10% per year. And the median was 75.70% per year.

Back to Basics: PB Ratio


Shopify PB Ratio Historical Data

The historical data trend for Shopify's PB Ratio 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
PB Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.08 7.31 15.35 21.67 15.58

Shopify Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
PB Ratio 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 18.01 14.97 15.58 8.71 4.53

Competitive Comparison

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

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

* The bar in red indicates where Shopify's PB Ratio falls into.



Shopify PB Ratio Calculation

The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. It is a ratio widely used to value stocks.

Shopify's PB Ratio for today is calculated as follows:

PB Ratio=Share Price/Book Value per Share (Q: Jun. 2022)
=36.86/6.903
=5.34

* 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.

It can also be calculated from the numbers for the whole company:

A closely related ratio is called Price-to-Tangible-Book. The difference between Price-to-Tangible-Book and PB Ratio is that book value other than intangibles are used in the calculation.


Shopify  (NYSE:SHOP) PB Ratio Explanation

Unlike valuation ratios relative to the earning power such as PE Ratio, PE Ratio without NRI, PS Ratio, Price-to-Operating-Cash-Flow , or Price-to-Free-Cash-Flow, the PB Ratio measures the valuation of the stock relative to the underlying asset of the company.

The PB Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.


Be Aware

Some businesses have very light assets, such as software companies or insurance agencies. The PB Ratio does not work well for these companies. Some companies even have negative equity, so the PB Ratio cannot be applied to them.


Shopify PB Ratio Related Terms

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


Shopify 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 Headlines

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