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Shopify (Shopify) Cyclically Adjusted Price-to-FCF : 548.69 (As of Apr. 28, 2024)


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What is Shopify Cyclically Adjusted Price-to-FCF?

As of today (2024-04-28), Shopify's current share price is $71.33. Shopify's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was $0.13. Shopify's Cyclically Adjusted Price-to-FCF for today is 548.69.

The historical rank and industry rank for Shopify's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

SHOP' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 515.56   Med: 690.43   Max: 977.86
Current: 553.98

During the past years, Shopify's highest Cyclically Adjusted Price-to-FCF was 977.86. The lowest was 515.56. And the median was 690.43.

SHOP's Cyclically Adjusted Price-to-FCF is ranked worse than
96.57% of 670 companies
in the Software industry
Industry Median: 28.305 vs SHOP: 553.98

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Shopify's adjusted free cash flow per share data for the three months ended in Dec. 2023 was $0.332. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is $0.13 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Shopify Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Shopify's Cyclically Adjusted Price-to-FCF 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 Cyclically Adjusted Price-to-FCF Chart

Shopify Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - - 611.69

Shopify Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Cyclically Adjusted Price-to-FCF Get a 7-Day Free Trial 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 - - 883.93 576.10 611.69

Competitive Comparison of Shopify's Cyclically Adjusted Price-to-FCF

For the Software - Application subindustry, Shopify's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF 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's Cyclically Adjusted Price-to-FCF Distribution in the Software Industry

For the Software industry and Technology sector, Shopify's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Shopify's Cyclically Adjusted Price-to-FCF falls into.



Shopify Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Shopify's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=71.33/0.13
=548.69

* 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's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 is calculated as:

For example, Shopify's adjusted Free Cash Flow per Share data for the three months ended in Dec. 2023 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=0.332/125.4675*125.4675
=0.332

Current CPI (Dec. 2023) = 125.4675.

Shopify Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 -0.004 98.604 -0.005
201406 -0.006 99.473 -0.008
201409 -0.007 99.394 -0.009
201412 -0.005 98.367 -0.006
201503 0.001 99.789 0.001
201506 0.006 100.500 0.007
201509 -0.009 100.421 -0.011
201512 -0.003 99.947 -0.004
201603 -0.003 101.054 -0.004
201606 -0.003 102.002 -0.004
201609 -0.006 101.765 -0.007
201612 -0.003 101.449 -0.004
201703 0.000 102.634 0.000
201706 -0.013 103.029 -0.016
201709 -0.011 103.345 -0.013
201712 0.007 103.345 0.008
201803 -0.012 105.004 -0.014
201806 -0.014 105.557 -0.017
201809 -0.005 105.636 -0.006
201812 0.000 105.399 0.000
201903 0.012 106.979 0.014
201906 0.001 107.690 0.001
201909 -0.041 107.611 -0.048
201912 0.034 107.769 0.040
202003 -0.087 107.927 -0.101
202006 0.136 108.401 0.157
202009 0.063 108.164 0.073
202012 0.193 108.559 0.223
202103 0.103 110.298 0.117
202106 0.046 111.720 0.052
202109 0.024 112.905 0.027
202112 0.208 113.774 0.229
202203 -0.033 117.646 -0.035
202206 -0.069 120.806 -0.072
202209 -0.117 120.648 -0.122
202212 0.071 120.964 0.074
202303 0.067 122.702 0.069
202306 0.076 124.203 0.077
202309 0.213 125.230 0.213
202312 0.332 125.468 0.332

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Shopify  (NYSE:SHOP) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Shopify Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Shopify's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Shopify (Shopify) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Technology » Software » Shopify Inc (NYSE:SHOP) » Definitions » Cyclically Adjusted Price-to-FCF
Address
151 O'Connor Street, Ground Floor, Ottawa, ON, CAN, K2P2L8
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.

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