SHOPBULLISH

SHOP PEG Ratio Analysis

7.54x

Updated 125h ago·SEC filings & market data

Key Takeaway

The PEG ratio, or price/earnings-to-growth ratio, adjusts a stock's P/E multiple by its expected earnings growth rate; a lower PEG typically suggests better value relative to growth.

Sector Performance

93th percentile

SHOP

7.54x

Sector Median

0.97x

Sector Avg

2.92x

Prior Period

6.34x(May 2026)

↓ Declining
📊

Deep Analysis

The PEG ratio, or price/earnings-to-growth ratio, adjusts a stock's P/E multiple by its expected earnings growth rate; a lower PEG typically suggests better value relative to growth.

At 7.54x, SHOP's PEG is far above the sector median of 0.92x and sits in the 93rd percentile among peers, indicating investors are paying a premium for projected growth compared to the industry. The metric's year-over-year change is N/A and its quarter-over-quarter change is N/A, so no trend data is available to assess direction. Because the PEG is extremely elevated and no trend can be evaluated, the combination signals a high valuation risk with no recent improvement in affordability. This directly contradicts the overall NEUTRAL verdict, as the extreme percentile and lack of favorable movement suggest the stock may be overpriced relative to its growth prospects.

Frequently Asked Questions

What does the PEG Ratio tell investors about SHOP?

The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.

How is the PEG Ratio calculated?

PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.

Who are SHOP's closest peers by PEG Ratio?

The closest peers by PEG Ratio include: EBAY (8.15x), VTR (8.27x), DOV (8.39x), MTD (8.61x), KR (9.25x).

The Formula

P/E Ratio / EPS Growth Rate

Why It Matters

The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.

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SHOP

7.54x

Sector Median

0.97x

Sector Avg

2.92x

How SHOP's PEG Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.