Shopify Inc (SHOP) Stock Down 3.6% — Now Undervalued? GF Score: 85/100
GuruFocus News
08/31/2026 16:03
On August 31, 2026, Shopify Inc SHOP shares fell 3.6% to a current price of $147.37, which brings the stock’s performance into the context of its 52-week range of $94.00 to $182.19. The recent decline follows a 25.8% increase over the past month, but year-to-date, the shares are still down 8.4%.
- GF Value™ verdict: Current price is $147.37, compared to GF Value of $151.60, indicating the stock is 2.8% undervalued.
- GF Score™ stands at 85/100, signifying a strong overall assessment of the company.
- Notable signal: No insider transactions have occurred in the past 12 months, suggesting stability in management ownership.
Is SHOP Overvalued or Undervalued?
Shopify’s current share price of $147.37 is slightly below its GF Value™ estimate of $151.60, suggesting that the stock is undervalued by approximately 2.8%. This margin of safety provides an opportunity for potential buyers, as the current market price allows for a small buffer against overvaluation risk. The GF Valuation label indicates that the stock is fairly valued, which aligns with its current pricing trend above the GF Value™ threshold.
GF Value™ is GuruFocus’s proprietary intrinsic-value estimate, which incorporates historical trading multiples, past business growth, and future performance estimates. In the current market environment, this valuation suggests that Shopify’s stock could be an appealing option for those looking for investments with a favorable risk-to-reward ratio, especially considering its recent price performance.
How Does SHOP’s Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 99.6x | 83.2x |
| Forward P/E | 78.0x | N/A |
Shopify’s current P/E ratio of 99.6x is 20% above its 5-year median of 83.2x, indicating that the stock is trading at a higher valuation compared to its historical norms. This analysis suggests that the P/E data may disagree with the GF Value™ verdict, indicating potential overvaluation when viewed through the lens of historical performance.
What Does SHOP’s GF Score™ Tell Us?
The GF Score™ measures the overall quality of a company based on various factors, including financial strength, profitability, growth, valuation, and momentum. With a score of 85/100, Shopify demonstrates strong metrics, particularly in growth and valuation, while its profitability rank is relatively moderate.
| Metric | Rating |
|---|---|
| GF Score™ | 85 |
| Financial Strength | 8/10 |
| Profitability | 5/10 |
| Growth | 9/10 |
| Valuation | 9/10 |
| Momentum | 7/10 |
Shopify’s strongest area is its growth rank at 9/10, indicating a robust potential for future expansion. However, its profitability rank of 5/10 shows that while it is healthy, there is room for improvement. Overall, the GF Score™ reflects a strong investment quality, although it also highlights the need for careful consideration of profitability metrics.
What Are Gurus and Insiders Doing with SHOP?
Currently, 11 gurus hold positions in Shopify Inc, with 4 adding to their holdings and 7 trimming their positions in recent quarters. This mixed activity suggests a cautious approach among investment professionals regarding the stock’s future performance. The lack of insider transactions in the past 12 months indicates a stable management team, which can be viewed positively.
The mixed guru activity could imply that while there is some confidence in the company’s prospects, certain investors may be recalibrating their positions in light of recent price fluctuations. This pattern of holding and adjusting positions can indicate varying degrees of optimism regarding Shopify’s future performance.
What This Means for Investors
Based on the analysis of GF Value™, Shopify Inc appears to be slightly undervalued at its current price of $147.37 compared to a GF Value of $151.60. However, caution is warranted due to the high P/E ratio relative to its historical averages. While the growth potential is strong, the valuation metrics suggest that investors should proceed with an awareness of possible overvaluation risks. For more detailed information, you can visit the Shopify IncSHOP stock page and explore further insights on its GF Value™.
Frequently Asked Questions
What is SHOP’s GF Score™?
Shopify has a GF Score™ of 85/100, indicating a strong overall quality assessment of the company.
According to GF Value™, Shopify is currently undervalued at a price of $147.37 versus a GF Value of $151.60.
What is SHOP’s P/E ratio?
The current P/E ratio for Shopify is 99.6x, which is above its 5-year median of 83.2x, indicating a higher valuation compared to its historical performance.
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.
