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SHOP (Shopify) Price-to-Free-Cash-Flow : 77.52 (As of Apr. 25, 2025)


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What is Shopify Price-to-Free-Cash-Flow?

As of today (2025-04-25), Shopify's share price is $95.12. Shopify's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Dec. 2024 was $1.23. Hence, Shopify's Price-to-Free-Cash-Flow Ratio for today is 77.52.

The historical rank and industry rank for Shopify's Price-to-Free-Cash-Flow or its related term are showing as below:

SHOP' s Price-to-Free-Cash-Flow Range Over the Past 10 Years
Min: 56.74   Med: 252.46   Max: 7824.22
Current: 75.17

During the past 13 years, Shopify's highest Price-to-Free-Cash-Flow Ratio was 7824.22. The lowest was 56.74. And the median was 252.46.

SHOP's Price-to-Free-Cash-Flow is ranked worse than
86.68% of 1532 companies
in the Software industry
Industry Median: 20.61 vs SHOP: 75.17

Shopify's Free Cash Flow per Share for the three months ended in Dec. 2024 was $0.47. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in was $1.23.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of Shopify was 86.60% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was 53.10% per year.

During the past 13 years, Shopify's highest 3-Year average Free Cash Flow per Share Growth Rate was 53.10% per year. The lowest was -85.00% per year. And the median was -8.75% per year.


Shopify Price-to-Free-Cash-Flow Historical Data

The historical data trend for Shopify's Price-to-Free-Cash-Flow can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Shopify Price-to-Free-Cash-Flow Chart

Shopify Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Price-to-Free-Cash-Flow
Get a 7-Day Free Trial Premium Member Only Premium Member Only 362.05 357.64 - 110.10 87.52

Shopify Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Price-to-Free-Cash-Flow Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 110.10 96.85 68.03 73.26 87.52

Competitive Comparison of Shopify's Price-to-Free-Cash-Flow

For the Software - Application subindustry, Shopify's Price-to-Free-Cash-Flow, along with its competitors' market caps and Price-to-Free-Cash-Flow data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Shopify's Price-to-Free-Cash-Flow Distribution in the Software Industry

For the Software industry and Technology sector, Shopify's Price-to-Free-Cash-Flow distribution charts can be found below:

* The bar in red indicates where Shopify's Price-to-Free-Cash-Flow falls into.


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Shopify Price-to-Free-Cash-Flow Calculation

Shopify's Price-to-Free-Cash-Flow ratio for today is calculated as

Price-to-Free-Cash-Flow Ratio=Share Price/ Free Cash Flow per Share (TTM)
=95.12/1.227
=77.52

Shopify's Share Price of today is $95.12.
Shopify's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Dec. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $1.23.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

It can also be calculated from the numbers for the whole company:

Price-to-Free-Cash-Flow Ratio=Market Cap/Free Cash Flow

Shopify  (NAS:SHOP) Price-to-Free-Cash-Flow Explanation

Free Cash Flow is considered more important than earnings by value investors. The reason is because, in principle, only the net cash that can be taken from the business belongs to shareholders. This Free Cash Flow can be used to grow the business, reduce debt or return to shareholders in dividends or share buybacks.

In a DCF Calculation Free Cash Flow is used to determine the intrinsic value of companies.


Be Aware

In real business, Free Cash Flow can be affected by the change in accounts receivable, accounts payable, management's decision on expansion, etc. Therefore, investors should look at the Free Cash Flow over the longer term. Long-term average of Free Cash Flow is a more reliable indicator for real free cash flow.


Shopify Price-to-Free-Cash-Flow Related Terms

Thank you for viewing the detailed overview of Shopify's Price-to-Free-Cash-Flow provided by GuruFocus.com. Please click on the following links to see related term pages.


Shopify Business Description

Industry
Address
151 O'Connor Street, Ground Floor, Ottawa, ON, CAN, K2P 2L8
Shopify offers an e-commerce platform primarily to small and medium-size businesses. The firm has two segments. The subscription solutions segment allows Shopify merchants to conduct e-commerce on a variety of platforms, including the company's website, physical stores, pop-up stores, kiosks, social networks (Facebook), and Amazon. The merchant solutions segment offers add-on products for the platform that facilitate e-commerce and include Shopify Payments, Shopify Shipping, and Shopify Capital.