Shopify Inc. (SHOP)
ValueMarkers Composite Index
554% above intrinsic value ($18)
Shopify Inc. (SHOP) — VMCI valuation read
Shopify Inc. sits at VMCI 52/100, with the Technology sector median at 50. That 2-point spread is the first thing to note on SHOP: it tells the reader the composite is favorable before any single ratio is examined, and the mid-cap tier sets the comparison set.
Form 4 disclosures on SHOP are blank for the trailing 30 days. With the insider channel offline, the EV/EBITDA delta, free-cash-flow trajectory, and the next earnings print do the talking.
**Investor frame.** The Value read on SHOP: SHOP trades at 24.0x earnings, 33% above the Technology median of 18.0x, with EV/EBITDA at 13.0x against 12.0x. The Quality read: ROIC of 12.0% sits 2.0pp above the Technology median (10.0%). The Risk read: net debt to EBITDA of 3.3x is the binding constraint on the bear case, anchoring the bear scenario on a measurable balance-sheet metric.
SHOP rose 3.3% over the trailing 7 days, with a -9.0% read on a 30-day basis.
Shopify Inc., a commerce company, provides a commerce platform and services in Canada, the United States, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company's platform enables merchants to displays, manages, markets, and sells its products through various sales channels, including web and mobile storefronts, physical retail locations, pop-up shops, social media storefronts, native mobile apps, buy buttons, and marketplaces; and enables to manage products and inventory, process orders and payments, fulfill and ship orders, new buyers and build customer relationships, source products, leverage analytics and reporting, manage cash, payments and transactions, and access financing. It also sells custom themes and apps, and registration of domain names; and merchant solutions, which include accepting payments, shipping and fulfillment, and securing working capital. The company was formerly known as Jaded Pixel Technologies Inc. and changed its name to Shopify Inc. in November 2011. Shopify Inc. was incorporated in 2004 and is headquartered in Ottawa, Canada.
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