Intrinsic value of Shopify Inc. Class A Subordinate Voting - SHOP

Previous Close

$142.55

  Intrinsic Value

$2.55

stock screener

  Rating & Target

str. sell

-98%

Previous close

$142.55

 
Intrinsic value

$2.55

 
Up/down potential

-98%

 
Rating

str. sell

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of SHOP stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  89.89
  60.00
  54.50
  49.55
  45.10
  41.09
  37.48
  34.23
  31.31
  28.68
  26.31
  24.18
  22.26
  20.53
  18.98
  17.58
  16.32
  15.19
  14.17
  13.26
  12.43
  11.69
  11.02
  10.42
  9.87
  9.39
  8.95
  8.55
  8.20
  7.88
  7.59
Revenue, $m
  526
  842
  1,300
  1,945
  2,821
  3,981
  5,472
  7,346
  9,645
  12,411
  15,676
  19,467
  23,800
  28,687
  34,131
  40,132
  46,684
  53,776
  61,397
  69,535
  78,178
  87,315
  96,935
  107,032
  117,601
  128,641
  140,152
  152,140
  164,613
  177,582
  191,061
Variable operating expenses, $m
 
  914
  1,410
  2,108
  3,058
  4,313
  5,929
  7,958
  10,448
  13,444
  16,980
  21,082
  25,775
  31,068
  36,965
  43,464
  50,559
  58,240
  66,493
  75,307
  84,668
  94,563
  104,982
  115,917
  127,363
  139,319
  151,786
  164,769
  178,277
  192,322
  206,921
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  576
  914
  1,410
  2,108
  3,058
  4,313
  5,929
  7,958
  10,448
  13,444
  16,980
  21,082
  25,775
  31,068
  36,965
  43,464
  50,559
  58,240
  66,493
  75,307
  84,668
  94,563
  104,982
  115,917
  127,363
  139,319
  151,786
  164,769
  178,277
  192,322
  206,921
Operating income, $m
  -50
  -72
  -110
  -164
  -236
  -333
  -456
  -612
  -803
  -1,032
  -1,303
  -1,616
  -1,976
  -2,381
  -2,833
  -3,331
  -3,875
  -4,464
  -5,096
  -5,772
  -6,489
  -7,248
  -8,046
  -8,884
  -9,762
  -10,678
  -11,634
  -12,629
  -13,664
  -14,741
  -15,860
EBITDA, $m
  -31
  -50
  -77
  -116
  -168
  -236
  -325
  -436
  -573
  -737
  -931
  -1,156
  -1,414
  -1,704
  -2,028
  -2,384
  -2,773
  -3,195
  -3,647
  -4,131
  -4,644
  -5,187
  -5,759
  -6,359
  -6,986
  -7,642
  -8,326
  -9,038
  -9,779
  -10,550
  -11,350
Interest expense (income), $m
  0
  1
  3
  6
  11
  17
  25
  35
  48
  64
  84
  107
  133
  164
  198
  236
  278
  324
  374
  427
  484
  545
  609
  676
  747
  821
  898
  979
  1,063
  1,150
  1,241
Earnings before tax, $m
  -48
  -73
  -113
  -170
  -247
  -349
  -481
  -647
  -851
  -1,097
  -1,387
  -1,723
  -2,109
  -2,545
  -3,031
  -3,567
  -4,153
  -4,788
  -5,470
  -6,199
  -6,973
  -7,792
  -8,655
  -9,561
  -10,509
  -11,499
  -12,532
  -13,608
  -14,727
  -15,891
  -17,101
Tax expense, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Net income, $m
  -48
  -73
  -113
  -170
  -247
  -349
  -481
  -647
  -851
  -1,097
  -1,387
  -1,723
  -2,109
  -2,545
  -3,031
  -3,567
  -4,153
  -4,788
  -5,470
  -6,199
  -6,973
  -7,792
  -8,655
  -9,561
  -10,509
  -11,499
  -12,532
  -13,608
  -14,727
  -15,891
  -17,101

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  546
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  663
  187
  289
  433
  628
  885
  1,217
  1,634
  2,145
  2,761
  3,487
  4,330
  5,294
  6,380
  7,592
  8,926
  10,383
  11,961
  13,656
  15,466
  17,388
  19,421
  21,560
  23,806
  26,157
  28,612
  31,173
  33,839
  36,613
  39,498
  42,496
Adjusted assets (=assets-cash), $m
  117
  187
  289
  433
  628
  885
  1,217
  1,634
  2,145
  2,761
  3,487
  4,330
  5,294
  6,380
  7,592
  8,926
  10,383
  11,961
  13,656
  15,466
  17,388
  19,421
  21,560
  23,806
  26,157
  28,612
  31,173
  33,839
  36,613
  39,498
  42,496
Revenue / Adjusted assets
  4.496
  4.503
  4.498
  4.492
  4.492
  4.498
  4.496
  4.496
  4.497
  4.495
  4.496
  4.496
  4.496
  4.496
  4.496
  4.496
  4.496
  4.496
  4.496
  4.496
  4.496
  4.496
  4.496
  4.496
  4.496
  4.496
  4.496
  4.496
  4.496
  4.496
  4.496
Average production assets, $m
  62
  99
  153
  229
  333
  470
  646
  867
  1,138
  1,465
  1,850
  2,297
  2,808
  3,385
  4,028
  4,736
  5,509
  6,346
  7,245
  8,205
  9,225
  10,303
  11,438
  12,630
  13,877
  15,180
  16,538
  17,953
  19,424
  20,955
  22,545
Working capital, $m
  481
  -101
  -156
  -233
  -339
  -478
  -657
  -881
  -1,157
  -1,489
  -1,881
  -2,336
  -2,856
  -3,442
  -4,096
  -4,816
  -5,602
  -6,453
  -7,368
  -8,344
  -9,381
  -10,478
  -11,632
  -12,844
  -14,112
  -15,437
  -16,818
  -18,257
  -19,754
  -21,310
  -22,927
Total debt, $m
  19
  79
  171
  300
  476
  708
  1,006
  1,381
  1,842
  2,395
  3,049
  3,808
  4,675
  5,653
  6,743
  7,945
  9,256
  10,676
  12,201
  13,830
  15,561
  17,390
  19,315
  21,337
  23,452
  25,662
  27,966
  30,366
  32,863
  35,459
  38,157
Total liabilities, $m
  108
  168
  260
  389
  565
  797
  1,095
  1,470
  1,931
  2,484
  3,138
  3,897
  4,764
  5,742
  6,832
  8,034
  9,345
  10,765
  12,290
  13,919
  15,650
  17,479
  19,404
  21,426
  23,541
  25,751
  28,055
  30,455
  32,952
  35,548
  38,246
Total equity, $m
  555
  19
  29
  43
  63
  89
  122
  163
  215
  276
  349
  433
  529
  638
  759
  893
  1,038
  1,196
  1,366
  1,547
  1,739
  1,942
  2,156
  2,381
  2,616
  2,861
  3,117
  3,384
  3,661
  3,950
  4,250
Total liabilities and equity, $m
  663
  187
  289
  432
  628
  886
  1,217
  1,633
  2,146
  2,760
  3,487
  4,330
  5,293
  6,380
  7,591
  8,927
  10,383
  11,961
  13,656
  15,466
  17,389
  19,421
  21,560
  23,807
  26,157
  28,612
  31,172
  33,839
  36,613
  39,498
  42,496
Debt-to-equity ratio
  0.034
  4.250
  5.920
  6.940
  7.580
  7.990
  8.270
  8.460
  8.590
  8.680
  8.740
  8.790
  8.830
  8.860
  8.880
  8.900
  8.910
  8.930
  8.930
  8.940
  8.950
  8.950
  8.960
  8.960
  8.970
  8.970
  8.970
  8.970
  8.980
  8.980
  8.980
Adjusted equity ratio
  0.077
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -48
  -73
  -113
  -170
  -247
  -349
  -481
  -647
  -851
  -1,097
  -1,387
  -1,723
  -2,109
  -2,545
  -3,031
  -3,567
  -4,153
  -4,788
  -5,470
  -6,199
  -6,973
  -7,792
  -8,655
  -9,561
  -10,509
  -11,499
  -12,532
  -13,608
  -14,727
  -15,891
  -17,101
Depreciation, amort., depletion, $m
  19
  22
  33
  48
  69
  96
  131
  175
  230
  295
  372
  459
  562
  677
  806
  947
  1,102
  1,269
  1,449
  1,641
  1,845
  2,061
  2,288
  2,526
  2,775
  3,036
  3,308
  3,591
  3,885
  4,191
  4,509
Funds from operations, $m
  49
  -51
  -80
  -122
  -178
  -253
  -350
  -472
  -621
  -802
  -1,015
  -1,263
  -1,547
  -1,868
  -2,226
  -2,620
  -3,051
  -3,519
  -4,021
  -4,558
  -5,128
  -5,732
  -6,367
  -7,035
  -7,733
  -8,463
  -9,224
  -10,017
  -10,842
  -11,700
  -12,592
Change in working capital, $m
  30
  -38
  -55
  -77
  -105
  -139
  -179
  -225
  -276
  -332
  -392
  -455
  -520
  -586
  -653
  -720
  -786
  -851
  -915
  -977
  -1,037
  -1,096
  -1,154
  -1,212
  -1,268
  -1,325
  -1,381
  -1,439
  -1,497
  -1,556
  -1,618
Cash from operations, $m
  19
  -13
  -25
  -44
  -73
  -114
  -171
  -247
  -345
  -470
  -623
  -808
  -1,027
  -1,281
  -1,572
  -1,900
  -2,265
  -2,668
  -3,107
  -3,581
  -4,091
  -4,635
  -5,213
  -5,823
  -6,465
  -7,138
  -7,843
  -8,579
  -9,345
  -10,144
  -10,974
Maintenance CAPEX, $m
  0
  -12
  -20
  -31
  -46
  -67
  -94
  -129
  -173
  -228
  -293
  -370
  -459
  -562
  -677
  -806
  -947
  -1,102
  -1,269
  -1,449
  -1,641
  -1,845
  -2,061
  -2,288
  -2,526
  -2,775
  -3,036
  -3,308
  -3,591
  -3,885
  -4,191
New CAPEX, $m
  -35
  -37
  -54
  -76
  -103
  -137
  -176
  -221
  -271
  -326
  -385
  -447
  -511
  -577
  -642
  -708
  -773
  -837
  -899
  -960
  -1,020
  -1,078
  -1,135
  -1,191
  -1,247
  -1,303
  -1,358
  -1,415
  -1,472
  -1,530
  -1,591
Cash from investing activities, $m
  -364
  -49
  -74
  -107
  -149
  -204
  -270
  -350
  -444
  -554
  -678
  -817
  -970
  -1,139
  -1,319
  -1,514
  -1,720
  -1,939
  -2,168
  -2,409
  -2,661
  -2,923
  -3,196
  -3,479
  -3,773
  -4,078
  -4,394
  -4,723
  -5,063
  -5,415
  -5,782
Free cash flow, $m
  -345
  -62
  -99
  -151
  -222
  -317
  -441
  -597
  -790
  -1,024
  -1,302
  -1,626
  -1,998
  -2,420
  -2,892
  -3,414
  -3,985
  -4,606
  -5,275
  -5,991
  -6,752
  -7,559
  -8,409
  -9,302
  -10,238
  -11,216
  -12,237
  -13,301
  -14,408
  -15,559
  -16,756
Issuance/(repayment) of debt, $m
  0
  62
  92
  129
  176
  232
  299
  375
  460
  554
  654
  759
  867
  978
  1,090
  1,201
  1,311
  1,420
  1,526
  1,629
  1,730
  1,829
  1,926
  2,021
  2,116
  2,210
  2,304
  2,400
  2,497
  2,596
  2,698
Issuance/(repurchase) of shares, $m
  309
  80
  123
  184
  266
  375
  514
  689
  902
  1,158
  1,460
  1,807
  2,205
  2,654
  3,152
  3,701
  4,299
  4,945
  5,640
  6,380
  7,166
  7,996
  8,869
  9,785
  10,744
  11,745
  12,788
  13,874
  15,004
  16,179
  17,400
Cash from financing (excl. dividends), $m  
  309
  142
  215
  313
  442
  607
  813
  1,064
  1,362
  1,712
  2,114
  2,566
  3,072
  3,632
  4,242
  4,902
  5,610
  6,365
  7,166
  8,009
  8,896
  9,825
  10,795
  11,806
  12,860
  13,955
  15,092
  16,274
  17,501
  18,775
  20,098
Total cash flow (excl. dividends), $m
  -35
  80
  116
  162
  220
  290
  372
  467
  572
  688
  812
  940
  1,075
  1,212
  1,350
  1,488
  1,625
  1,759
  1,890
  2,018
  2,144
  2,266
  2,386
  2,504
  2,621
  2,738
  2,855
  2,973
  3,094
  3,217
  3,343
Retained Cash Flow (-), $m
  -291
  -80
  -123
  -184
  -266
  -375
  -514
  -689
  -902
  -1,158
  -1,460
  -1,807
  -2,205
  -2,654
  -3,152
  -3,701
  -4,299
  -4,945
  -5,640
  -6,380
  -7,166
  -7,996
  -8,869
  -9,785
  -10,744
  -11,745
  -12,788
  -13,874
  -15,004
  -16,179
  -17,400
Prev. year cash balance distribution, $m
 
  544
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  544
  -7
  -22
  -47
  -85
  -142
  -222
  -330
  -470
  -648
  -867
  -1,130
  -1,441
  -1,802
  -2,212
  -2,674
  -3,187
  -3,749
  -4,362
  -5,022
  -5,730
  -6,483
  -7,281
  -8,122
  -9,007
  -9,933
  -10,901
  -11,911
  -12,963
  -14,057
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  522
  -7
  -19
  -38
  -66
  -103
  -150
  -206
  -270
  -340
  -412
  -482
  -548
  -605
  -650
  -680
  -693
  -690
  -672
  -638
  -593
  -538
  -477
  -414
  -350
  -290
  -234
  -184
  -142
  -106
Current shareholders' claim on cash, %
  100
  57.8
  34.9
  21.3
  13.2
  8.3
  5.2
  3.3
  2.2
  1.4
  0.9
  0.6
  0.4
  0.3
  0.2
  0.1
  0.1
  0.1
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

Shopify Inc. (Shopify) provides a cloud-based, multi-channel commerce platform designed for small and medium-sized businesses. The Company offers subscription solutions and merchant solutions. The Company's software is used by merchants to run their business across all of their sales channels, including Web and mobile storefronts, physical retail locations, social media storefronts and marketplaces. The Shopify platform provides merchants with a single view of their business and customers across all of their sales channels and enables them to manage products and inventory, process orders and payments, ship orders, build customer relationships and leverage analytics and reporting all from one integrated back office. The Shopify platform includes a mobile-optimized checkout system, which is designed to enable merchants' consumers to buy products over mobile Websites. Its merchants are able to offer their customers the ability to check out by using Apple Pay.

FINANCIAL RATIOS  of  Shopify Inc. Class A Subordinate Voting (SHOP)

Valuation Ratios
P/E Ratio -265.5
Price to Sales 24.2
Price to Book 23
Price to Tangible Book
Price to Cash Flow 670.8
Price to Free Cash Flow -796.6
Growth Rates
Sales Growth Rate 89.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 25%
Cap. Spend. - 3 Yr. Gr. Rate 42.3%
Financial Strength
Quick Ratio 273
Current Ratio 0.1
LT Debt to Equity 3.1%
Total Debt to Equity 3.4%
Interest Coverage 0
Management Effectiveness
Return On Assets -9.7%
Ret/ On Assets - 3 Yr. Avg. -14.6%
Return On Total Capital -11.3%
Ret/ On T. Cap. - 3 Yr. Avg. -17.2%
Return On Equity -11.7%
Return On Equity - 3 Yr. Avg. -18.3%
Asset Turnover 1.1
Profitability Ratios
Gross Margin 53.8%
Gross Margin - 3 Yr. Avg. 55.8%
EBITDA Margin -5.5%
EBITDA Margin - 3 Yr. Avg. -9.3%
Operating Margin -9.5%
Oper. Margin - 3 Yr. Avg. -12.9%
Pre-Tax Margin -9.1%
Pre-Tax Margin - 3 Yr. Avg. -13.1%
Net Profit Margin -9.1%
Net Profit Margin - 3 Yr. Avg. -13.1%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0%
Payout Ratio 0%

SHOP stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the SHOP stock intrinsic value calculation we used $526 million for the last fiscal year's total revenue generated by Shopify Inc. Class A Subordinate Voting . The default revenue input number comes from 2016 income statement of Shopify Inc. Class A Subordinate Voting . You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our SHOP stock valuation model: a) initial revenue growth rate of 60% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for SHOP is calculated based on our internal credit rating of Shopify Inc. Class A Subordinate Voting , is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Shopify Inc. Class A Subordinate Voting .
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of SHOP stock the variable cost ratio is equal to 108.7%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for SHOP stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Shopify Inc. Class A Subordinate Voting .

Corporate tax rate of 27% is the nominal tax rate for Shopify Inc. Class A Subordinate Voting . In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the SHOP stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for SHOP are equal to 11.8%.

Life of production assets of 3.9 years is the average useful life of capital assets used in Shopify Inc. Class A Subordinate Voting operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for SHOP is equal to -12%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $555 million for Shopify Inc. Class A Subordinate Voting - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 99.284 million for Shopify Inc. Class A Subordinate Voting is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Shopify Inc. Class A Subordinate Voting at the current share price and the inputted number of shares is $14.2 billion.

Financial statements of SHOP
Follow us on:   twitter   twitter   twitter   twitter

ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2018. All rigths reserved.