Shopify Inc (SHOP) Stock Down 5.5% — Now Undervalued? GF Score: 86/100
GuruFocus News
09/09/2026 16:06
On September 09, 2026, Shopify Inc SHOP shares fell 5.5% to a current price of $126.79. This drop comes amid a challenging market environment, with SHOP’s shares experiencing a significant decline over the past month, dropping 16.4%. The stock has fluctuated within a 52-week range of $94.00 to $182.19.
- GF Value™ verdict: Currently priced at $126.79, SHOP is estimated to be 17.0% undervalued compared to a fair value of $152.69.
- GF Score™ of 86/100 indicates a strong overall grade, suggesting solid fundamentals.
- Notable signal: SHOP has seen no insider transactions in the past 12 months, indicating stable insider sentiment.
Is SHOP Overvalued or Undervalued?
According to GF Value™, Shopify Inc SHOP is currently undervalued at a price of $126.79, which is 17.0% below its estimated fair value of $152.69. This presents a margin of safety for potential investors, suggesting there may be room for growth if the market recognizes the underlying value of the company. GF Value™ is GuruFocus’ proprietary intrinsic-value estimate that considers historical trading multiples, past business growth, and projections for future performance.
This undervaluation is further supported by the GF Valuation label, which classifies SHOP as “Modestly Undervalued.” However, while this presents an opportunity, it is important to consider market conditions and the company’s performance metrics, which could impact its recovery and growth trajectory in the near future.
How Does SHOP’s Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 85.7x | 85.0x |
| Forward P/E | 52.1x | N/A |
Currently, SHOP’s P/E (TTM) stands at 85.7x, which is slightly above its 5-year median P/E of 85.0x, indicating that the stock is trading at a premium compared to its historical valuation. However, the forward P/E of 52.1x suggests a more favorable outlook for earnings relative to current price levels. This P/E analysis aligns with the GF Value™ verdict of modest undervaluation, indicating potential upside if the company can capitalize on growth opportunities.
What Does SHOP’s GF Score™ Tell Us?
The GF Score™ measures a company’s financial strength, profitability, growth potential, valuation, and momentum to provide an overall assessment of its investment quality. Shopify Inc’s GF Score™ of 86/100 reflects strong fundamentals, with notable strengths in growth and valuation metrics.
| Metric | Rating |
|---|---|
| GF Score™ | 86/100 |
| Financial Strength | 8/10 |
| Profitability | 5/10 |
| Growth | 9/10 |
| Valuation | 10/10 |
| Momentum | 8/10 |
The strongest areas for Shopify are its growth (9/10) and valuation (10/10) ranks, indicating robust growth prospects and attractive current pricing. Conversely, the profitability rank of 5/10 suggests that while the company is managing its financial health well, there may be room for improvement in generating consistent profits.
What Are Gurus and Insiders Doing with SHOP?
Currently, 11 gurus hold shares of Shopify Inc SHOP, with 4 adding to their positions and 7 trimming their holdings in recent quarters. This activity reflects a mixed sentiment among institutional investors, but the net positive activity indicates confidence in the company’s prospects.
Moreover, the absence of insider transactions in the past 12 months suggests a stable outlook from company executives, which can be interpreted as a sign of confidence in the company’s future performance. The lack of insider selling could indicate that insiders expect the stock price to appreciate, further supporting the notion of a potential rebound from its current valuation.
What This Means for Investors
In summary, Shopify Inc SHOP appears to be undervalued based on the GF Value™ assessment, suggesting that the stock may present a buying opportunity for investors looking for growth potential. However, it is essential to consider the overall market conditions and company performance trends before making any investment decisions. For further insights on Shopify Inc, you can visit the Shopify Inc (SHOP) stock page and explore additional resources like the GF Value™ page.
Frequently Asked Questions
What is SHOP’s GF Score™?
SHOP’s GF Score™ is 86/100, indicating a strong overall grade based on various financial metrics and fundamentals.
SHOP is currently undervalued, with a GF Value™ estimate indicating a 17.0% upside potential from its current price.
What is SHOP’s P/E ratio?
SHOP’s P/E (TTM) is 85.7x, which is slightly above its 5-year median of 85.0x, suggesting 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.
