Intrinsic value of Shopify Cl A - SHOP

Previous Close

$102.10

  Intrinsic Value

$1.78

stock screener

  Rating & Target

str. sell

-98%

Previous close

$102.10

 
Intrinsic value

$1.78

 
Up/down potential

-98%

 
Rating

str. sell

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

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 10.1

 

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, %
  89.76
  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
  389
  622
  962
  1,438
  2,087
  2,944
  4,047
  5,432
  7,133
  9,179
  11,593
  14,396
  17,601
  21,215
  25,242
  29,680
  34,525
  39,769
  45,406
  51,424
  57,816
  64,573
  71,688
  79,155
  86,971
  95,135
  103,649
  112,514
  121,738
  131,329
  141,298
Variable operating expenses, $m
 
  676
  1,043
  1,559
  2,261
  3,189
  4,384
  5,884
  7,726
  9,941
  12,556
  15,590
  19,060
  22,973
  27,334
  32,140
  37,386
  43,066
  49,169
  55,687
  62,609
  69,925
  77,630
  85,716
  94,180
  103,021
  112,240
  121,840
  131,829
  142,215
  153,010
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
  427
  676
  1,043
  1,559
  2,261
  3,189
  4,384
  5,884
  7,726
  9,941
  12,556
  15,590
  19,060
  22,973
  27,334
  32,140
  37,386
  43,066
  49,169
  55,687
  62,609
  69,925
  77,630
  85,716
  94,180
  103,021
  112,240
  121,840
  131,829
  142,215
  153,010
Operating income, $m
  -37
  -53
  -81
  -121
  -175
  -246
  -337
  -452
  -593
  -762
  -963
  -1,193
  -1,459
  -1,758
  -2,092
  -2,460
  -2,862
  -3,296
  -3,764
  -4,262
  -4,792
  -5,352
  -5,942
  -6,561
  -7,209
  -7,885
  -8,591
  -9,326
  -10,091
  -10,885
  -11,712
EBITDA, $m
  -23
  -37
  -57
  -86
  -125
  -176
  -242
  -324
  -426
  -548
  -692
  -859
  -1,051
  -1,266
  -1,507
  -1,771
  -2,061
  -2,374
  -2,710
  -3,069
  -3,451
  -3,854
  -4,279
  -4,725
  -5,191
  -5,678
  -6,186
  -6,716
  -7,266
  -7,839
  -8,434
Interest expense (income), $m
  0
  0
  2
  4
  8
  12
  18
  26
  36
  48
  62
  79
  99
  122
  147
  175
  207
  241
  278
  318
  360
  405
  453
  503
  555
  610
  668
  728
  790
  855
  923
Earnings before tax, $m
  -35
  -54
  -83
  -125
  -182
  -258
  -355
  -478
  -629
  -810
  -1,025
  -1,273
  -1,558
  -1,880
  -2,239
  -2,636
  -3,068
  -3,537
  -4,041
  -4,580
  -5,152
  -5,757
  -6,395
  -7,064
  -7,764
  -8,496
  -9,259
  -10,054
  -10,881
  -11,741
  -12,635
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
  -35
  -54
  -83
  -125
  -182
  -258
  -355
  -478
  -629
  -810
  -1,025
  -1,273
  -1,558
  -1,880
  -2,239
  -2,636
  -3,068
  -3,537
  -4,041
  -4,580
  -5,152
  -5,757
  -6,395
  -7,064
  -7,764
  -8,496
  -9,259
  -10,054
  -10,881
  -11,741
  -12,635

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  404
  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
  491
  139
  215
  322
  467
  658
  905
  1,215
  1,595
  2,053
  2,593
  3,220
  3,937
  4,745
  5,646
  6,638
  7,722
  8,895
  10,156
  11,502
  12,931
  14,443
  16,034
  17,704
  19,452
  21,278
  23,182
  25,165
  27,228
  29,374
  31,603
Adjusted assets (=assets-cash), $m
  87
  139
  215
  322
  467
  658
  905
  1,215
  1,595
  2,053
  2,593
  3,220
  3,937
  4,745
  5,646
  6,638
  7,722
  8,895
  10,156
  11,502
  12,931
  14,443
  16,034
  17,704
  19,452
  21,278
  23,182
  25,165
  27,228
  29,374
  31,603
Revenue / Adjusted assets
  4.471
  4.475
  4.474
  4.466
  4.469
  4.474
  4.472
  4.471
  4.472
  4.471
  4.471
  4.471
  4.471
  4.471
  4.471
  4.471
  4.471
  4.471
  4.471
  4.471
  4.471
  4.471
  4.471
  4.471
  4.471
  4.471
  4.471
  4.471
  4.471
  4.471
  4.471
Average production assets, $m
  45
  72
  112
  167
  242
  341
  469
  630
  827
  1,065
  1,345
  1,670
  2,042
  2,461
  2,928
  3,443
  4,005
  4,613
  5,267
  5,965
  6,707
  7,490
  8,316
  9,182
  10,089
  11,036
  12,023
  13,052
  14,122
  15,234
  16,391
Working capital, $m
  356
  -75
  -116
  -174
  -252
  -356
  -490
  -657
  -863
  -1,111
  -1,403
  -1,742
  -2,130
  -2,567
  -3,054
  -3,591
  -4,177
  -4,812
  -5,494
  -6,222
  -6,996
  -7,813
  -8,674
  -9,578
  -10,524
  -11,511
  -12,541
  -13,614
  -14,730
  -15,891
  -17,097
Total debt, $m
  14
  58
  127
  222
  353
  526
  748
  1,027
  1,369
  1,781
  2,267
  2,831
  3,476
  4,204
  5,014
  5,907
  6,883
  7,938
  9,073
  10,285
  11,571
  12,931
  14,364
  15,867
  17,440
  19,084
  20,797
  22,582
  24,439
  26,369
  28,376
Total liabilities, $m
  80
  125
  194
  289
  420
  593
  815
  1,094
  1,436
  1,848
  2,334
  2,898
  3,543
  4,271
  5,081
  5,974
  6,950
  8,005
  9,140
  10,352
  11,638
  12,998
  14,431
  15,934
  17,507
  19,151
  20,864
  22,649
  24,506
  26,436
  28,443
Total equity, $m
  410
  14
  22
  32
  47
  66
  91
  122
  160
  205
  259
  322
  394
  475
  565
  664
  772
  889
  1,016
  1,150
  1,293
  1,444
  1,603
  1,770
  1,945
  2,128
  2,318
  2,517
  2,723
  2,937
  3,160
Total liabilities and equity, $m
  490
  139
  216
  321
  467
  659
  906
  1,216
  1,596
  2,053
  2,593
  3,220
  3,937
  4,746
  5,646
  6,638
  7,722
  8,894
  10,156
  11,502
  12,931
  14,442
  16,034
  17,704
  19,452
  21,279
  23,182
  25,166
  27,229
  29,373
  31,603
Debt-to-equity ratio
  0.034
  4.190
  5.880
  6.920
  7.560
  7.980
  8.260
  8.450
  8.580
  8.670
  8.740
  8.790
  8.830
  8.860
  8.880
  8.900
  8.910
  8.920
  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
  0.069
  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
  -35
  -54
  -83
  -125
  -182
  -258
  -355
  -478
  -629
  -810
  -1,025
  -1,273
  -1,558
  -1,880
  -2,239
  -2,636
  -3,068
  -3,537
  -4,041
  -4,580
  -5,152
  -5,757
  -6,395
  -7,064
  -7,764
  -8,496
  -9,259
  -10,054
  -10,881
  -11,741
  -12,635
Depreciation, amort., depletion, $m
  14
  16
  24
  35
  50
  70
  95
  128
  167
  215
  271
  334
  408
  492
  586
  689
  801
  923
  1,053
  1,193
  1,341
  1,498
  1,663
  1,836
  2,018
  2,207
  2,405
  2,610
  2,824
  3,047
  3,278
Funds from operations, $m
  37
  -38
  -59
  -90
  -132
  -188
  -260
  -350
  -462
  -596
  -754
  -939
  -1,150
  -1,388
  -1,654
  -1,947
  -2,267
  -2,615
  -2,988
  -3,387
  -3,811
  -4,259
  -4,731
  -5,227
  -5,746
  -6,289
  -6,854
  -7,444
  -8,057
  -8,694
  -9,357
Change in working capital, $m
  23
  -28
  -41
  -58
  -78
  -104
  -133
  -168
  -206
  -248
  -292
  -339
  -388
  -437
  -487
  -537
  -586
  -635
  -682
  -728
  -773
  -818
  -861
  -904
  -946
  -988
  -1,030
  -1,073
  -1,116
  -1,161
  -1,206
Cash from operations, $m
  14
  -9
  -18
  -33
  -54
  -84
  -126
  -183
  -256
  -348
  -462
  -599
  -762
  -951
  -1,166
  -1,410
  -1,681
  -1,980
  -2,306
  -2,659
  -3,037
  -3,442
  -3,871
  -4,324
  -4,801
  -5,301
  -5,824
  -6,371
  -6,940
  -7,533
  -8,150
Maintenance CAPEX, $m
  0
  -9
  -14
  -22
  -33
  -48
  -68
  -94
  -126
  -165
  -213
  -269
  -334
  -408
  -492
  -586
  -689
  -801
  -923
  -1,053
  -1,193
  -1,341
  -1,498
  -1,663
  -1,836
  -2,018
  -2,207
  -2,405
  -2,610
  -2,824
  -3,047
New CAPEX, $m
  -26
  -27
  -39
  -55
  -75
  -99
  -128
  -161
  -197
  -237
  -280
  -325
  -372
  -419
  -467
  -515
  -562
  -608
  -654
  -698
  -741
  -784
  -825
  -866
  -907
  -947
  -988
  -1,028
  -1,070
  -1,113
  -1,156
Cash from investing activities, $m
  -270
  -36
  -53
  -77
  -108
  -147
  -196
  -255
  -323
  -402
  -493
  -594
  -706
  -827
  -959
  -1,101
  -1,251
  -1,409
  -1,577
  -1,751
  -1,934
  -2,125
  -2,323
  -2,529
  -2,743
  -2,965
  -3,195
  -3,433
  -3,680
  -3,937
  -4,203
Free cash flow, $m
  -256
  -46
  -72
  -110
  -162
  -232
  -323
  -437
  -579
  -751
  -955
  -1,194
  -1,468
  -1,778
  -2,126
  -2,510
  -2,932
  -3,389
  -3,882
  -4,410
  -4,972
  -5,567
  -6,194
  -6,853
  -7,544
  -8,266
  -9,019
  -9,804
  -10,621
  -11,470
  -12,354
Issuance/(repayment) of debt, $m
  0
  45
  68
  96
  131
  173
  222
  279
  342
  412
  486
  564
  645
  728
  811
  893
  975
  1,056
  1,135
  1,212
  1,287
  1,360
  1,432
  1,503
  1,573
  1,643
  1,714
  1,785
  1,857
  1,931
  2,007
Issuance/(repurchase) of shares, $m
  229
  61
  91
  136
  197
  277
  380
  509
  667
  856
  1,079
  1,335
  1,630
  1,961
  2,329
  2,735
  3,177
  3,655
  4,167
  4,715
  5,295
  5,908
  6,554
  7,231
  7,939
  8,678
  9,449
  10,252
  11,087
  11,955
  12,858
Cash from financing (excl. dividends), $m  
  229
  106
  159
  232
  328
  450
  602
  788
  1,009
  1,268
  1,565
  1,899
  2,275
  2,689
  3,140
  3,628
  4,152
  4,711
  5,302
  5,927
  6,582
  7,268
  7,986
  8,734
  9,512
  10,321
  11,163
  12,037
  12,944
  13,886
  14,865
Total cash flow (excl. dividends), $m
  -26
  60
  87
  122
  165
  218
  279
  351
  430
  517
  610
  706
  807
  910
  1,014
  1,118
  1,220
  1,321
  1,420
  1,516
  1,610
  1,702
  1,792
  1,881
  1,969
  2,056
  2,144
  2,233
  2,323
  2,416
  2,511
Retained Cash Flow (-), $m
  -215
  -61
  -91
  -136
  -197
  -277
  -380
  -509
  -667
  -856
  -1,079
  -1,335
  -1,630
  -1,961
  -2,329
  -2,735
  -3,177
  -3,655
  -4,167
  -4,715
  -5,295
  -5,908
  -6,554
  -7,231
  -7,939
  -8,678
  -9,449
  -10,252
  -11,087
  -11,955
  -12,858
Prev. year cash balance distribution, $m
 
  403
  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
 
  403
  -4
  -14
  -32
  -60
  -101
  -159
  -237
  -339
  -469
  -629
  -823
  -1,051
  -1,315
  -1,617
  -1,957
  -2,334
  -2,748
  -3,199
  -3,685
  -4,207
  -4,762
  -5,350
  -5,970
  -6,622
  -7,305
  -8,019
  -8,764
  -9,540
  -10,347
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
 
  386
  -4
  -12
  -26
  -46
  -73
  -107
  -148
  -195
  -246
  -299
  -351
  -399
  -442
  -475
  -497
  -508
  -506
  -493
  -468
  -435
  -395
  -351
  -304
  -258
  -213
  -172
  -136
  -104
  -78
Current shareholders' claim on cash, %
  100
  53.6
  32.4
  19.9
  12.3
  7.7
  4.9
  3.1
  2.0
  1.3
  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 Cl A (SHOP)

Valuation Ratios
P/E Ratio -260.8
Price to Sales 23.5
Price to Book 22.3
Price to Tangible Book
Price to Cash Flow 652.1
Price to Free Cash Flow -760.7
Growth Rates
Sales Growth Rate 89.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 23.8%
Cap. Spend. - 3 Yr. Gr. Rate 39.1%
Financial Strength
Quick Ratio 404
Current Ratio 0.1
LT Debt to Equity 3.2%
Total Debt to Equity 3.4%
Interest Coverage 0
Management Effectiveness
Return On Assets -9.5%
Ret/ On Assets - 3 Yr. Avg. -14.6%
Return On Total Capital -11.1%
Ret/ On T. Cap. - 3 Yr. Avg. -17.3%
Return On Equity -11.6%
Return On Equity - 3 Yr. Avg. -18.3%
Asset Turnover 1.1
Profitability Ratios
Gross Margin 54%
Gross Margin - 3 Yr. Avg. 56.1%
EBITDA Margin -5.4%
EBITDA Margin - 3 Yr. Avg. -9.1%
Operating Margin -9.8%
Oper. Margin - 3 Yr. Avg. -13.2%
Pre-Tax Margin -9%
Pre-Tax Margin - 3 Yr. Avg. -13.1%
Net Profit Margin -9%
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 $389 million for the last fiscal year's total revenue generated by Shopify Cl A. The default revenue input number comes from 2016 income statement of Shopify Cl A. 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 Cl A, 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 Cl A.
    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 Cl A.

Corporate tax rate of 27% is the nominal tax rate for Shopify Cl A. 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 11.6%.

Life of production assets of 3.9 years is the average useful life of capital assets used in Shopify Cl A 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 -12.1%. 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 - $410 million for Shopify Cl A - 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 98.531 million for Shopify Cl A 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 Cl A at the current share price and the inputted number of shares is $10.1 billion.

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COMPANY NEWS

▶ Buy More Shopify Inc (US) While Its Down   [Oct-19-17 10:52AM  InvestorPlace]
▶ [$$] Shopify Stock Seen Reaching $116   [08:37AM  Barrons.com]
▶ 3 Companies Making Payments as Easy as ABC   [Oct-18-17 07:46PM  Motley Fool]
▶ Shopify: Buy the Dip?   [02:05PM  Motley Fool]
▶ Shopify: Buy the Dip?   [Oct-17-17 09:06PM  Motley Fool]
▶ Finally: A Way To Invest In Blockchain   [07:30PM  Oilprice.com]
▶ 3 Stocks for Future Millionaires   [Oct-12-17 09:38PM  Motley Fool]
▶ 3 Growth Stocks I'd Buy Right Now   [07:43AM  Motley Fool]
▶ Risk-Reward With Shopify   [03:48PM  GuruFocus.com]
▶ 3 Stocks That Tripled   [07:45AM  Motley Fool]
▶ Why Shopify Inc. Stock Dropped Today   [06:47PM  Motley Fool]
▶ Why Citron's Andrew Left Is Shorting Shopify   [02:22PM  Bloomberg Video]
▶ Stock Indexes Turn Narrowly Positive; Shopify Falls 6%   [12:04PM  Investor's Business Daily]
▶ Technical Buy Points on High-Flying Stocks   [08:14AM  Investopedia]
▶ Shopify Inc (SHOP): How Does It Impact Your Portfolio?   [Oct-02-17 06:42PM  Simply Wall St.]
▶ Here's My Top Stock to Buy in October   [Oct-01-17 11:16AM  Motley Fool]
▶ [$$] Alger Small Cap Focus: Big Ideas, Small Stocks   [Sep-30-17 12:39AM  Barrons.com]
▶ Shopify Inc. (SHOP) Still Has Plenty of Room to Run   [Sep-29-17 08:31AM  InvestorPlace]
Financial statements of SHOP
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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