Shopify Stock is currently trading at $131. Is Shopify Stock undervalued?
Shopify Inc. (NYSE:SHOP)(TSX:SH) is a Canadian multinational e-commerce company headquartered in Ottawa, Ontario. It is also the name of its proprietary e-commerce platform for online stores and retail point-of-sale systems.
Shopify offers online retailers a suite of services “including payments, marketing, shipping and customer engagement tools to simplify the process of running an online store for small merchants. ”
The company was founded in 2004 by Tobias Lütke, Daniel Weinand, and Scott Lake after attempting to open Snowdevil, an online store for snowboarding equipment. Lütke used the open source eCommerce software osCommerce to launch Snowdevil’s website, and was unsatisfied with the product. As a result, Lütke decided to write his own solution.
PRO TIP: Shopify stock may be undervalued and is not suitable for all investors. Please conduct your own research before making any investment decisions.
Shopify stock is currently trading at $131.
So, is Shopify Stock undervalued?
The current market capitalization for Shopify is around $22.7 billion. Based on the company’s most recent 12 months trailing earnings, Shopify’s Price/Earnings ratio (P/E ratio) is around 140. This means that for every $1 of earnings, investors are currently paying $140.
The industry median P/E ratio for Internet Software & Services companies is 31.5. This means that Shopify’s P/E ratio is around 4.5 times higher than the median P/E ratio for companies in its industry.
Conclusion
Shopify’s stock price has been on an incredible run over the past few years. The company’s share price has increased more than tenfold since its IPO in 2015. While the stock might appear to be expensive based on traditional valuation metrics such as price-to-earnings, when considering the company’s growth potential, Shopify might still be a bargain.
6 Related Question Answers Found
Shopify is a Canadian e-commerce company headquartered in Ottawa, Ontario. It is also the name of its proprietary e-commerce platform for online stores and retail point-of-sale systems. Shopify offers online retailers a suite of services “including payments, marketing, shipping and customer engagement” tools.
Shopify is a Canadian e-commerce company headquartered in Ottawa, Ontario. It is also the name of its proprietary e-commerce platform for online stores and retail point-of-sale systems. Shopify offers online retailers a suite of services “including payments, marketing, shipping and customer engagement tools to simplify the process of running an online store for small merchants.”
Shopify was founded in 2004 by Tobias Lütke, Daniel Weinand, and Scott Lake, who were all working on an online snowboarding store called Snowdevil.
Shopify is a profitable company. It has been profitable for years, and it shows no signs of slowing down. Shopify is a platform for businesses of all sizes to create an online store.
Shopify Inc. is a Canadian multinational e-commerce company headquartered in Ottawa, Ontario. It is also the name of its proprietary e-commerce platform for online stores and retail point-of-sale systems.
Shopify is scheduled to report its first-quarter earnings after the bell on Thursday, and analysts are expecting the ecommerce company to beat earnings. Shopify is a Canadian ecommerce company that offers online retailers a platform to sell their products. The company went public in 2015 and has since been one of the hottest stocks on the market.
Shopify is a popular e-commerce platform that allows business owners to create a custom online store. It offers a wide range of features, including a user-friendly platform, built-in marketing tools, and the ability to accept payments through a variety of payment processors. As a result, Shopify is popular with small businesses and entrepreneurs who want to start and manage their own online stores.
