Shopify Inc (SHOP)

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SHOPIFY Valuation Issues

The stock is trading at a massive valuation. Moreover, its price-sales ratios are high enough to be outlandish even if they were P/E ratios.

For example, the stock’s P/S multiple, based on analysts’ average 2020 sales estimate, is almost 50 times. The same ratio, based on the average 2021 revenue estimate, is about 38 times.

Further, TipRanks.com reports that there are 26 analysts whose average price target on Shopify stock is not much higher than the shares’ price today.

These analysts have all issued notes on the stock in the last three months and have produced 12-month price targets. Their average price target is $1,133.15. That is just 7% above yesterday’s closing price of $1,056.

https://investorplace.com/2020/10/shopify-stock-is-overvalued-better-to-short-a-net-credit-put-spread/