SHOP FCF Yield Analysis
Updated 118h ago·SEC filings & market data
Key Takeaway
Free cash flow yield is the annual free cash flow a company generates relative to its market value, so 1.4% means SHOP produces $1.40 in free cash flow per $100 of equity value.
Sector Performance
20th percentileSHOP
1.4%
Sector Median
4.2%
Sector Avg
9.1%
Prior Period
1.3%(Jul 2026)
Deep Analysis
Free cash flow yield is the annual free cash flow a company generates relative to its market value, so 1.4% means SHOP produces $1.40 in free cash flow per $100 of equity value.
That is far below the sector median of 4.2%, placing the stock in the 21st percentile among peers. The trend is pointed upward, though year-over-year change is not available; quarter-over-quarter the metric improved by +7.7%, and the last four readings are 1.4%, 1.3%, 1.2%, then 1.3% before that. The combination of a low absolute yield with an increasing trend suggests the company is improving its cash generation, reducing but not eliminating the risk of overvaluation. This supports the overall BULLISH verdict: the direction of the metric is favorable even if the current level is unimpressive.
Frequently Asked Questions
What does the FCF Yield tell investors about SHOP?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
Who are SHOP's closest peers by FCF Yield?
The closest peers by FCF Yield include: JACK (23.5%), BBWI (23.7%), YELP (25.7%), MET (27.9%), WIX (29.2%).
Learn More About FCF Yield
Understanding Free Cash Flow
Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.
Free Cash Flow Yield: Why It Matters More Than Earnings Per Share
EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
Master SHOP's Valuation
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1.4%
Sector Median
4.2%
Sector Avg
9.1%
How SHOP's FCF Yield compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.