Shopify (SHOP) stock has risen 34.3% over the past three months, while the S&P 500 gained 2.8%. On September 22, the shares rose about 8% in early trading after Meta connected its Muse AI agent to Shopify’s Shop Pay checkout. Investors buying the stock today pay for all of it. So how much does a buyer pay for Shopify’s business after that rise?
Shopify Costs Far More Than The Market
The stock trades at 16.7 times its sales over the past twelve months, compared with a multiple of 3.1 for the S&P 500. Over the past ten years, this multiple has ranged from 6.5 to 54.2. Today’s valuation remains well below the top of that historical range.
Shopify also costs far more than the market based on profit and cash. The stock trades at 114.8 times earnings, against 21.9 for the S&P 500. It also trades at 93.1 times operating cash flow, compared with 14.7 for the broader index.
Investors paying that price are acquiring a business that converts a larger portion of each sale into operating profit. Over the past twelve months, Shopify recorded an operating margin of 17.8%, up from 15.3% a year earlier. This marks the highest operating margin for the company in ten years. Payments are also contributing a growing share of the business. During the second quarter of 2026, Shopify’s payments service handled 68% of the value of goods sold through its merchants’ stores, up 3 points from a year earlier.
How Fast Does Shopify Have To Keep Growing?
Shopify has increased its revenue by more than 30% from a year earlier in each of its last four quarters. For the second quarter of 2026, revenue growth came in at 33.7%.
The company generates more revenue as its merchants increase their own sales. In the second quarter, the value of goods sold through merchant stores rose 32%. That marked the fifth straight quarter with growth above 30%.
Current share prices appear to assume that Shopify will continue growing its sales by more than 30% a year. Management has only guided to that pace for one quarter, the third quarter, which ended on September 30 and has not been reported yet. During their August 5, 2026 earnings call, executives said they expected third-quarter revenue growth in the low 30s.
Executives were less definitive regarding cash generation. When asked on the call whether a free cash flow margin of roughly 20% represented a new normal, management declined to confirm it. They pointed instead to their third-quarter guide, which forecasts a margin in the high teens to low 20s.
Shopify Stock Has Gone Both Ways On Its Results
