Shopify refocuses on core e-commerce software, 25% revenue growth, market cap $100bn; forward P/E ratio 26, suggesting overvaluation.
Shopify has refocused on its core e-commerce software and payment tools, achieving a 25% year-over-year revenue growth and a 16% free-cash-flow margin. Despite a 55% stock increase over the past year, its market capitalization stands at $100 billion, trading at over 10 times its trailing sales. Financial projections estimate a forward P/E ratio of 26, suggesting the stock is overvalued, making it less attractive as an investment even below $100.
October 27, 2024
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