Question 1

What is Shopify's P/E ratio?

Accepted Answer

Shopify (SHOP) P/E ratio is 115.9× as of July 22, 2026. The ratio is calculated by dividing market capitalisation by trailing twelve-month earnings (net income), using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/E ratio calculated?

Accepted Answer

P/E = Share Price ÷ Trailing Twelve-Month (TTM) Diluted EPS, or equivalently Market Capitalisation ÷ TTM Net Income. All inputs are sourced from audited GAAP/IFRS filings and translated to USD using period-end exchange rates so the multiple is comparable across companies and currencies.

Question 3

What is the P/E ratio?

Accepted Answer

The price-to-earnings (P/E) ratio, also called the earnings multiple, measures how much investors pay per dollar of a company's trailing twelve-month (TTM) earnings. It is calculated as share price ÷ TTM diluted EPS (equivalent to market capitalisation ÷ TTM net income). A higher P/E implies the market is pricing in stronger future earnings growth or lower risk; a lower P/E can signal slower expected growth, higher risk, or potential undervaluation.

Question 4

What is a good P/E ratio for Shopify?

Accepted Answer

There is no universal "good" P/E. As a rule of thumb, the S&P 500 has historically averaged a P/E in the mid-to-high teens; mature, slow-growth businesses commonly trade in the 10–18× range, while high-growth or asset-light companies often trade at 25–50×+. What matters is the comparison to sector peers and to the company's own historical range. For Shopify specifically, the relevant sector benchmark is the current sector median of 29.4×.

Question 5

Is Shopify's P/E ratio high or low?

Accepted Answer

Shopify's P/E ratio of 115.9× is below its own 5-year average of 165.6× and above the sector median of 29.4×. That places the current reading at the 73th percentile of its 10-year history. A higher multiple usually reflects stronger expected growth, lower perceived risk, or higher returns on capital; a lower multiple reflects the opposite.

Question 6

What is Shopify's historical P/E ratio range?

Accepted Answer

In the available daily series, Shopify (SHOP) P/E ratio has ranged from a low of 18.0× in 2022 to a high of 825.6× in 2024. The 5-year average is 165.6× and the 5-year median is 74.8×.

Question 7

What was Shopify's P/E ratio in 2025?

Accepted Answer

Shopify (SHOP) P/E ratio at the end of 2025 was 169.9×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month earnings figure available at that date.

Question 8

Why does Shopify's P/E ratio change over time?

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (earnings). Share-price changes — driven by interest rates, earnings expectations, risk appetite, and broader market sentiment — typically dominate short-term moves, while changes in the underlying fundamental drive the longer-term trend. As a result, the ratio can rise during stock-price rallies even if the business itself has not become more valuable, and fall during sell-offs even when fundamentals are improving.


2025	$209B	$1.23B	169.9×	+101.7×	Dec 31, 2025
2024	$138B	$2.02B	68.2×	-690.5×	Dec 31, 2024
2023	$100B	$132M	758.6×	—	Dec 31, 2023
2022	$44.2B	-$3.46B	—	—	Dec 31, 2022
2021	$173B	$2.91B	59.4×	-385.0×	Dec 31, 2021
2020	$142B	$320M	444.5×	—	Dec 31, 2020
2019	$46.1B	-$125M	—	—	Dec 31, 2019
2018	$14.9B	-$64.6M	—	—	Dec 31, 2018
2017	$10.5B	-$40M	—	—	Dec 31, 2017
2016	$3.82B	-$35.4M	—	—	Dec 31, 2016
2015	$2.01B	-$18.8M	—	—	Dec 31, 2015
2014	$1.13B	-$22.3M	—	—	Dec 31, 2014


Dell Technologies (DELL)	16.2×
Western Digital (WDC)	15.7×
Accenture (ACN)	15.4×
Gartner (IT)	14.9×
CDW (CDW)	14.5×
Adobe (ADBE)	14.4×
Leidos Holdings (LDOS)	14.1×
Zoom Communications (ZM)	13.8×
QUALCOMM (QCOM)	13.7×
PTC (PTC)	13.5×
Paycom Software (PAYC)	13.2×
Elastic N.V. (ESTC)	13.2×
Cognizant (CTSH)	13.1×
First Solar (FSLR)	12.7×
GoDaddy (GDDY)	12.7×
Gen Digital (GEN)	11.7×
Duolingo (DUOL)	10.9×
Super Micro Computer (SMCI)	10.9×
Science Applications International (SAIC)	10.3×
Fiserv (FISV)	9.3×
Fidelity National Information Services (FIS)	9.0×
HP (HPQ)	7.5×
Sunrun (RUN)	5.6×
Lyft (LYFT)	1.8×
IBM (IBM)	0.0×

P/E Ratio for Shopify (SHOP) 2020-2026

P/E Ratio daily chart for Shopify (SHOP)

Historical P/E Ratio for Shopify (SHOP) from 2014 to 2025

About P/E Ratio at Shopify (SHOP)

Shopify P/E Ratio by Year

Shopify P/E Ratio 2025: 169.9×

Shopify P/E Ratio 2024: 68.2×

Shopify P/E Ratio 2023: 758.6×

Shopify P/E Ratio 2021: 59.4×

Shopify P/E Ratio 2020: 444.5×

Sector peers by P/E Ratio — chart

Sector peers by P/E Ratio — table

Frequently asked questions

Shopify (SHOP) Key Financials