Shopify Inc Intrinsic Value Calculation – Shopify Selling at Record High Premium Compared to Peer Block
June 17, 2023
🌧️Trending News
Shopify Inc ($NYSE:SHOP). is a leading e-commerce platform that has seen incredible success in recent times. Shopify is now a global leader in the e-commerce sector, offering businesses a comprehensive platform that makes it easy to design, set up, and manage their online stores. With its intuitive design and powerful features, Shopify has become the go-to choice for businesses looking to expand their reach. The company also provides a wide range of services such as website development, marketing, payment processing, and customer support. The success of Shopify has been powered by the growing demand for digital commerce solutions.
The pandemic has accelerated the digital transformation of businesses worldwide and Shopify’s platform has been at the forefront of this change. With increasing adoption of its services, Shopify has become one of the fastest-growing companies in the world. Its success has led to its stock being sold at a premium compared to that of Block Inc., which is indicative of its continued success and potential for further growth.
Price History
Shopify Inc. had a record-breaking week on the stock market, with its stock opening at $67.0 and closing at $64.7 on Friday. The impressive stock performance of Shopify Inc. is a testament to the success of the company and its ability to remain competitive in the e-commerce industry. Despite the recent drop in stock prices, Shopify Inc. is still trading at a premium compared to Block Inc., indicating that investors are confident in the continued success of the company.
Overall, Shopify Inc. is selling at a record-high premium compared to Block Inc., and this is indicative of the company’s strong position in the e-commerce industry. With its reliable products and services, Shopify Inc. has created a loyal customer base and established itself as a leader in the space. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Shopify Inc. More…
| Total Revenues | Net Income | Net Margin |
| 5.9k | -1.92k | -21.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Shopify Inc. More…
| Operations | Investing | Financing |
| -11.45 | -705.57 | 17.55 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Shopify Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 10.96k | 2.51k | 6.46 |
Key Ratios Snapshot
Some of the financial key ratios for Shopify Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 50.6% | – | -63.0% |
| FCF Margin | ROE | ROA |
| -1.0% | -27.8% | -21.2% |
Analysis – Shopify Inc Intrinsic Value Calculation
GoodWhale has conducted an analysis of SHOPIFY INC‘s wellbeing. Our proprietary Valuation Line has determined that the fair value of SHOPIFY INC’s shares is around $127.8. However, currently SHOPIFY INC’s stock is being traded at $64.7, indicating that it is undervalued by 49.4%. This presents an opportunity for investors to purchase the stock at below market value. More…
Peers
It is also the name of its proprietary e-commerce platform for online stores and retail point-of-sale systems. Shopify offers online retailers a suite of services “including payments, marketing, shipping and customer engagement tools to simplify the process of running an online store for small merchants. Shopify was founded in 2004 by Tobias Lütke, Daniel Weinand, and Scott Lake after attempting to open Snowdevil, an online store for snowboarding equipment. Shopify was initially written in Ruby on Rails by Lütke.
– BigCommerce Holdings Inc ($NASDAQ:BIGC)
BigCommerce Holdings Inc is a publicly traded company with a market capitalization of 695.55 million as of 2022. The company has a return on equity of -116.92%. BigCommerce Holdings Inc is a provider of eCommerce software-as-a-service solutions. The company offers a platform that enables businesses to create online stores and sell products and services.
– Riskified Ltd ($NYSE:RSKD)
Riskified Ltd is a technology company that uses data and machine learning to help businesses approve more orders and prevent fraud. The company has a market cap of 897.11M as of 2022 and a Return on Equity of -14.29%. Riskified was founded in 2013 and is headquartered in Tel Aviv, Israel.
– Vtex ($NYSE:VTEX)
Vtex has a market cap of 751.26M as of 2022, a Return on Equity of -11.41%. The company provides an e-commerce platform that helps businesses with their online stores.
Summary
Shopify Inc. is an e-commerce platform that enables merchants to build and manage their own online stores. It has become a popular investment option and is currently trading for a hefty premium compared to its peer Block Inc. Investors have increasingly shown interest in Shopify due to its strong financial performance, wide range of features, and ability to offer an easy-to-use platform for merchants. Shopify also offers several features including a website builder, payment processing, inventory management, and more.
These features allow merchants to easily set up and manage their own stores, which can prove to be a great asset in the long run. Overall, Shopify is a great option for investors looking for a well-performing platform with an amazing range of features.
Related Posts
Recent Posts
Investing Everyone Can Do.
Investing shouldn’t be exclusive to a select few. We believe everyone should have the opportunity to grow their wealth. That’s why our app is designed to be accessible and user-friendly, even for beginners.
