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P/E ratio for Shopify (SHOP)

P/E ratio as of October 2022 (TTM): -20.1

According to Shopify's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is -20.0802. At the end of 2021 the company had a P/E ratio of 586.

P/E ratio history for Shopify from 2015 to 2022

PE ratio at the end of each year

Year P/E ratio Change
2020> 1000-220.16%
2019< -100060.4%
2018< -1000-7.14%
2017< -1000135.6%
2016< -10006.82%

How to read a P/E ratio?

The Price/Earnings ratio measures the relationship between a company's stock price and its earnings per share. A low but positive P/E ratio stands for a company that is generating high earnings compared to its current valuation and might be undervalued. A company with a high negative (near 0) P/E ratio stands for a company that is generating heavy losses compared to its current valuation.

Companies with a P/E ratio over 30 or a negative one are generaly seen as "growth stocks" meaning that investors typically expect the company to grow or to become profitable in the future.
Companies with a positive P/E ratio bellow 10 are generally seen as "value stocks" meaning that the company is already very profitable and unlikely to strong growth in the future.