A Look at Shopify Inc (SHOP) After 7.6% Decline — GF Value $152.57 vs Price $134.10
GuruFocus News
09/08/2026 16:13
On September 08, 2026, Shopify Inc SHOP shares fell 7.6%, bringing the current price to $134.10. This decline is significant when considering the stock’s performance over the past year, with a 52-week range of $94.00 to $182.19.
- GF Value™ verdict: SHOP is currently trading at a 12.1% discount to its GF Value™ of $152.57.
- GF Score™ of 85/100 indicates a strong overall assessment of the company.
- Notable signal: There have been no insider transactions in the past 12 months.
Is SHOP Overvalued or Undervalued?
The current price of Shopify Inc at $134.10 suggests that the stock is undervalued according to the GF Value™, which estimates fair value at $152.57. This represents a margin of safety of 12.1%, indicating that there may be an opportunity for investors to acquire shares at a price lower than their intrinsic value. The GF Valuation label categorizes SHOP as “Modestly Undervalued,” further supporting this assessment.
GF Value™ is GuruFocus’ proprietary intrinsic-value estimate that takes into account historical trading multiples, past business growth, and future performance projections. The disparity between the current trading price and the GF Value™ suggests that investors may want to consider the potential upside when evaluating their position in SHOP.
How Does SHOP’s Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 90.6x | 83.5x |
| Forward P/E | 55.1x | N/A |
Shopify’s current P/E (TTM) of 90.6x is above its 5-year median of 83.5x, indicating that the stock is trading at a premium compared to its historical valuation. This analysis aligns with the GF Value™ verdict, suggesting that while the stock may be undervalued based on intrinsic value, the higher P/E ratio raises caution regarding future growth expectations.
What Does SHOP’s GF Score™ Tell Us?
The GF Score™ measures a company’s financial strength, profitability, growth potential, valuation, and momentum. Shopify’s score of 85/100 reflects a strong overall performance, with its strongest sub-ranks in growth (9/10) and valuation (9/10), while its weakest sub-rank is in profitability (5/10).
| Metric | Rating |
|---|---|
| GF Score™ | 85 |
| Financial Strength | 8/10 |
| Profitability | 5/10 |
| Growth | 9/10 |
| Valuation | 9/10 |
| Momentum | 7/10 |
The scores indicate that Shopify has a robust financial foundation, evidenced by its high financial strength rating. However, the lower profitability ranking suggests that while the company is growing rapidly, it may be facing challenges in translating that growth into profits. The strong growth and valuation ranks further reinforce the potential for the stock’s upside as it seeks to improve profitability.
What Are Gurus and Insiders Doing with SHOP?
Currently, 11 gurus hold shares of Shopify, with 4 increasing their positions and 7 trimming their holdings in recent quarters. This activity indicates a mixed sentiment among institutional investors. The absence of insider transactions in the past 12 months suggests that management may not be actively buying shares, which can sometimes indicate a lack of confidence in the company’s near-term prospects.
The guru ownership flow serves as a key differentiator for GuruFocus, providing insight into how institutional investors are positioning themselves in relation to Shopify. The balance of additions and trims illustrates that while some gurus see potential in the stock, others are exercising caution.
What This Means for Investors
Based on the GF Value™ assessment, Shopify appears to be undervalued at its current price of $134.10, with a potential upside to its intrinsic value of $152.57. However, investors should consider the elevated P/E ratio compared to historical averages and the mixed sentiment from industry gurus. This analysis suggests that while there are opportunities within Shopify, careful consideration of the company’s profitability and market dynamics is warranted. For a deeper dive into Shopify’s financials, visit the Shopify IncSHOP stock page.
Frequently Asked Questions
What is SHOP’s GF Score™?
SHOP has a GF Score™ of 85/100, indicating a strong overall assessment of the company’s financial health and growth potential.
SHOP is currently undervalued, trading at a 12.1% discount to its GF Value™ of $152.57.
What is SHOP’s P/E ratio?
SHOP’s P/E (TTM) is 90.6x, which is above its 5-year median of 83.5x, indicating it is trading at a premium compared to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Disclosures
I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.
