Shopify (Shopify) Cyclically Adjusted PS Ratio : 33.02 (As of Apr. 28, 2024)

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What is Shopify Cyclically Adjusted PS Ratio?

As of today (2024-04-28), Shopify's current share price is $71.33. Shopify's Cyclically Adjusted Revenue per Share for the quarter that ended in Dec. 2023 was $2.16. Shopify's Cyclically Adjusted PS Ratio for today is 33.02.

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

SHOP' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 22.63 Med: 34.04 Max: 42
Current: 32.98

During the past years, Shopify's highest Cyclically Adjusted PS Ratio was 42.00. The lowest was 22.63. And the median was 34.04.

SHOP's Cyclically Adjusted PS Ratio is ranked worse than
98.51% of 1412 companies
in the Software industry
Industry Median: 1.87 vs SHOP: 32.98

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 PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.

Shopify's adjusted revenue per share data for the three months ended in Dec. 2023 was $1.598. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is $2.16 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation

Shopify Cyclically Adjusted PS Ratio Historical Data

The historical data trend for Shopify's Cyclically Adjusted PS 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 Cyclically Adjusted PS Ratio Chart

Shopify Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Cyclically Adjusted PS Ratio

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36.02

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 PS Ratio	Get a 7-Day Free Trial															-	-	33.14	26.61	36.02

Competitive Comparison of Shopify's Cyclically Adjusted PS Ratio

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

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

* The bar in red indicates where Shopify's Cyclically Adjusted PS Ratio falls into.

Shopify Cyclically Adjusted PS Ratio Calculation

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

Shopify's Cyclically Adjusted PS Ratio for today is calculated as

Cyclically Adjusted PS Ratio	=	Share Price	/	Cyclically Adjusted Revenue per Share
	=	71.33	/	2.16
	=	33.02

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

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

Adj_RevenuePerShare	=	Revenue per Share	/	CPI of Dec. 2023 (Change)	*	Current CPI (Dec. 2023)
	=	1.598	/	125.4675	*	125.4675
	=	1.598

Current CPI (Dec. 2023) = 125.4675.

Shopify Quarterly Data

	Revenue per Share	CPI	Adj_RevenuePerShare
201403	0.028	98.604	0.036
201406	0.019	99.473	0.024
201409	0.022	99.394	0.028
201412	0.028	98.367	0.036
201503	0.056	99.789	0.070
201506	0.085	100.500	0.106
201509	0.070	100.421	0.087
201512	0.090	99.947	0.113
201603	0.090	101.054	0.112
201606	0.107	102.002	0.132
201609	0.117	101.765	0.144
201612	0.146	101.449	0.181
201703	0.141	102.634	0.172
201706	0.161	103.029	0.196
201709	0.174	103.345	0.211
201712	0.223	103.345	0.271
201803	0.210	105.004	0.251
201806	0.231	105.557	0.275
201809	0.253	105.636	0.300
201812	0.319	105.399	0.380
201903	0.289	106.979	0.339
201906	0.323	107.690	0.376
201909	0.345	107.611	0.402
201912	0.435	107.769	0.506
202003	0.402	107.927	0.467
202006	0.582	108.401	0.674
202009	0.614	108.164	0.712
202012	0.791	108.559	0.914
202103	0.780	110.298	0.887
202106	0.878	111.720	0.986
202109	0.881	112.905	0.979
202112	1.081	113.774	1.192
202203	0.955	117.646	1.018
202206	1.026	120.806	1.066
202209	1.076	120.648	1.119
202212	1.362	120.964	1.413
202303	1.167	122.702	1.193
202306	1.323	124.203	1.336
202309	1.323	125.230	1.326
202312	1.598	125.468	1.598

Add all the adjusted revenue per share together and divide 10 will get our Cyclically Adjusted Revenue 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 PS Ratio Explanation

Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue 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 PS Ratio should give similar results to regular PS Ratio.

Shopify Cyclically Adjusted PS Ratio Related Terms

Thank you for viewing the detailed overview of Shopify's Cyclically Adjusted PS Ratio 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 PS Ratio

Comparable Companies

Traded in Other Exchanges

SHOP:Mexico 307:Germany 307:Germany SHOP:Canada S2HO34:Brazil

Address

151 O'Connor Street, Ground Floor, Ottawa, ON, CAN, K2P2L8

Website

https://www.shopify.com

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.