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Shopify (Shopify) EV-to-FCF

: 94.60 (As of Today)
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EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Shopify's Enterprise Value is $85,614 Mil. Shopify's Free Cash Flow for the trailing twelve months (TTM) ended in Dec. 2023 was $905 Mil. Therefore, Shopify's EV-to-FCF for today is 94.60.

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

SHOP' s EV-to-FCF Range Over the Past 10 Years
Min: -5594.55   Med: -251.38   Max: 7221.95
Current: 94.6

During the past 12 years, the highest EV-to-FCF of Shopify was 7221.95. The lowest was -5594.55. And the median was -251.38.

SHOP's EV-to-FCF is ranked worse than
87.93% of 1516 companies
in the Software industry
Industry Median: 21.53 vs SHOP: 94.60

EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.

As of today (2024-04-19), Shopify's stock price is $69.67. Shopify's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 was $0.090. Therefore, Shopify's PE Ratio for today is 774.11.


Shopify EV-to-FCF Historical Data

The historical data trend for Shopify's EV-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 Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
EV-to-FCF
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5,352.44 347.87 344.00 -218.29 106.48

Shopify Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
EV-to-FCF 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 -218.29 -980.46 633.61 120.74 106.48

Competitive Comparison

For the Software - Application subindustry, Shopify's EV-to-FCF, along with its competitors' market caps and EV-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 EV-to-FCF Distribution

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

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



Shopify EV-to-FCF Calculation

Shopify's EV-to-FCF for today is calculated as:

EV-to-FCF=Enterprise Value (Today)/Free Cash Flow (TTM)
=85614.396/905
=94.60

Shopify's current Enterprise Value is $85,614 Mil.
Shopify's Free Cash Flow for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $905 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  (NYSE:SHOP) EV-to-FCF Explanation

EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.

Shopify's PE Ratio for today is calculated as:

PE Ratio=Share Price (Today)/Earnings per Share (Diluted) (TTM)
=69.67/0.090
=774.11

Shopify's share price for today is $69.67.
Shopify's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $0.090.

* 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.

Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.


Shopify EV-to-FCF Related Terms

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


Shopify (Shopify) Business Description

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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