P/E Ratio
Updated 33h ago
Sector Performance
95th percentileSHOP
111.6x
Sector Median
24.7x
Sector Avg
36.0x
Deep Analysis
The price-to-earnings (P/E) ratio of 111.6x means investors are paying $111.60 for every $1 of the company's past-year earnings — a very high valuation that implies expectations of strong future profit growth.
Among its sector peers, where the median P/E is 24.8x, SHOP sits at the 95th percentile, meaning only 5% of similar companies trade at a higher multiple. Year-over-year change is not available, but the ratio rose 18.9% quarter-over-quarter from 93.9x to 111.6x. A P/E already extreme relative to peers combined with a rapid quarterly increase signals elevated risk: any earnings miss could trigger a sharp price correction, though it also reflects high-growth optimism. This metric does not support the overall NEUTRAL verdict — the extreme valuation and upward trend lean toward caution beyond a neutral stance.
Frequently Asked Questions
What does the P/E Ratio tell investors about SHOP?
Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.
How is the P/E Ratio calculated?
P/E Ratio is calculated as: Price / EPS.
Who are SHOP's closest peers by P/E Ratio?
The closest peers by P/E Ratio include: VICI (9.1x), OMF (9.0x), JACK (8.5x), GIS (8.4x), FIS (8.4x).
The Formula
Price / EPS
Why It Matters
Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.
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111.6x
Sector Median
24.7x
Sector Avg
36.0x
How SHOP's P/E Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.