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Is Shopify stock overvalued?

Last updated on September 25, 2022 @ 2:11 am

Shopify Inc. (SHOP) is a Canadian multinational e-commerce company.

The company provides a platform for entrepreneurs and small businesses to create online stores. Shopify is headquartered in Ottawa, Ontario.

The company has a market capitalization of $11.8 billion as of March 2019.

PRO TIP: Shopify stock may be overvalued and is not suitable for all investors. This note is for informational purposes only and does not constitute investment advice. Please consult a financial advisor before making any investment decisions.

Shopify was founded in 2006 by Tobias Lütke and Daniel Weinand. The company went public in June 2017 and was listed on the Toronto Stock Exchange under the ticker symbol SHOP.

Shopify has been criticized for being overvalued. Shopify’s stock has been trading at a multiple of earnings that is greater than 25 times normalized earnings.

This is a high valuation, and it is possible that the stock is overvalued.

Dale Leydon

Dale Leydon

Sysadmin turned Javascript developer. Owner of 20+ apps graveyard, and a couple of successful ones.