Shopify Inc (SHOP) Shares Surge 7.3% — What GF Score of 85 Tells Investors
GuruFocus News
09/21/2026 16:15
On September 21, 2026, Shopify Inc SHOP shares rose 7.3% today, currently priced at $137.92. The stock has experienced considerable volatility, with a 52-week range between $94.00 and $182.19.
- GF Value™ verdict: SHOP is currently trading at 10.5% below its GF Value™ of $154.18.
- GF Score™ of 85/100 indicates a strong overall performance in various key metrics.
- Notable signal: No insider transactions have occurred in the past 12 months.
Is SHOP Overvalued or Undervalued?
Shopify Inc is currently considered to be undervalued based on its GF Value™, which suggests a fair value of $154.18. With the current price at $137.92, this indicates a margin of safety of approximately 10.5%. The GF Valuation label categorizes SHOP as modestly undervalued, presenting a potential opportunity for investors looking for stocks with favorable pricing relative to their intrinsic value.
GF Value™ is an estimate derived from a combination of historical trading multiples, the company’s past business growth, and projections for future performance. Given the current state of the market and Shopify’s business fundamentals, the slight undervaluation suggests that the stock may offer a compelling entry point for investors who align with its growth trajectory and market position.
How Does SHOP’s Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 93.1x | 85.0x |
| Forward P/E | 56.3x | N/A |
The current P/E ratio of 93.1x is above its 5-year median of 85.0x, indicating that the stock is trading at a premium compared to its historical valuation. However, the forward P/E ratio of 56.3x suggests a more favorable outlook for future earnings, which aligns with the GF Value™ assessment of modest undervaluation. This analysis indicates that while the stock is slightly overvalued based on historical P/E metrics, the expectation of growth may justify the current pricing.
What Does SHOP’s GF Score™ Tell Us?
The GF Score™ measures a stock’s overall performance based on various factors including financial strength, profitability, growth potential, valuation, and momentum. Shopify’s score of 85/100 highlights its robust overall standing, with particularly strong marks in growth and valuation.
| Metric | Rating |
|---|---|
| GF Score™ | 85 |
| Financial Strength | 8/10 |
| Profitability | 5/10 |
| Growth | 9/10 |
| Valuation | 10/10 |
| Momentum | 7/10 |
The strong growth rank of 9/10 indicates that Shopify is expected to continue expanding, while the valuation rank of 10/10 suggests that the stock is priced well compared to its intrinsic value. However, the profitability rank of 5/10 indicates potential concerns regarding margins or overall financial performance that could impact investor sentiment.
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 mixed activity among gurus reflects a cautious yet optimistic sentiment towards Shopify’s future. The lack of insider transactions in the past 12 months may suggest that insiders are currently not making significant moves, which could indicate confidence in the company’s strategy or a wait-and-see approach regarding market conditions.
The guru ownership flow, particularly the addition of positions by several premium investors, serves as a notable signal of confidence in Shopify’s long-term potential. These trends can offer valuable insights for other investors monitoring market movements and sentiment.
What This Means for Investors
Given that Shopify is currently valued at approximately 10.5% below its GF Value™, the stock appears to be undervalued. This presents a potential opportunity for investors, although caution is warranted due to the mixed signals from profitability and guru activity. For those interested in exploring more about Shopify, further details can be found on the Shopify IncSHOP stock page.
Frequently Asked Questions
What is SHOP’s GF Score™?
SHOP’s GF Score™ is 85/100, indicating a strong overall performance across key metrics, suggesting solid fundamentals and market position.
SHOP is currently considered undervalued, trading at 10.5% below its GF Value™ of $154.18.
What is SHOP’s P/E ratio?
SHOP’s P/E ratio is 93.1x, which is above its 5-year median of 85.0x, indicating it is trading at a premium based on historical valuation metrics.
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.
