Stock Valuation / SHOP
Is Shopify Inc. (SHOP) Overvalued? Fair Value & 5-Year Target
Shopify Inc. trades at $176.52 (P/E 118.47). Our reference model estimates a fair value of $138.32 at its recent average P/E of 92.83.
| Current price | $176.52 |
|---|---|
| Current EPS | $1.49 |
| Current P/E | 118.47 |
| Average P/E | 92.83 |
| Fair value (at avg P/E) | $138.32 |
| Upside to fair value | -21.6% |
| Illustrative 5-yr target (25× P/E, 15% growth) | $74.92 |
What drives SHOP's valuation
Changing either assumption moves the target: a higher P/E multiple or faster EPS growth raises fair value, a lower multiple or slower growth lowers it. The interactive dashboard lets you edit both and re-run the model instantly.
About Shopify Inc.
Shopify Inc., a commerce technology company, provides tools to start, scale, market, and run a business of various sizes in Canada, the United States, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The Company offers Shopify platform that enables merchants to manage products and inventory, process orders and payments, fulfill and ship orders, build customer relationships, source products, leverage analytics, and reporting and access financing for running their business across all of their sales channels, including web and mobile storefronts, physical retail locations, social media storefronts, and marketplaces. It also provides Shopify Payments, a fully integrated paym
Frequently asked questions
What is SHOP's fair value?
At its recent average P/E of 92.83, Shopify Inc. (SHOP) has a reference fair value of about $138.32, which is -21.6% versus the current price of $176.52.
Is Shopify Inc. (SHOP) overvalued or undervalued?
Based on the average-P/E reference model, Shopify Inc. looks overvalued relative to fair value by roughly +21.6%. This is a model output, not investment advice — change the P/E and growth assumptions in the dashboard for your own view.
What is a 5-year price target for SHOP?
Under an illustrative model of 25× P/E and 15% annual EPS growth, the implied 5-year target is $74.92. Adjust both inputs on the interactive page to match your assumptions.
Open the interactive SHOP valuation dashboard →
Figures are for informational purposes only and are not investment advice. Data as of 2026-10-14.