SHOP

Potentially Overvalued

Shopify Inc. — PEG Ratio Analysis

3.88

PEG Ratio

3.88

Growth Rate Source

Good Data Quality5-Year EPS CAGR

Current Price

$113.23

TTM EPS

$1.02

P/E Ratio

111.01

Growth Rate

28.6%

5-Year EPS CAGR

Sector

Technology

Software - Application

Calculated

6/17/2026

12:43:14 PM

Peer Comparison

Sample Size

5 peers

Industry Median PEG

1.27

25th Percentile

1.17

75th Percentile

1.58

SHOP PEG (3.88) vs Industry Median (1.27): 207% premium

Symbol	Company	PEG	P/E	Growth	vs SHOP
ZM	Zoom Communications, Inc.	0.62	13.5	21.7%	-84%
INTU	Intuit Inc.	1.17	17.0	14.6%	-70%
WDAY	Workday, Inc.	1.27	39.6	31.3%	-67%
CRM	Salesforce, Inc.	1.58	18.7	11.9%	-59%
NOW	ServiceNow, Inc.	2.67	60.3	22.6%	-31%

How to Interpret PEG Ratio

PEG < 1.0 — Potentially Undervalued. The stock may be priced below its earnings growth rate, suggesting a potential buying opportunity.

PEG 1.0–2.0 — Fairly Valued. The stock price is roughly in line with its earnings growth. A PEG of 1.0 is often considered "fair value."

PEG > 2.0 — Potentially Overvalued. The stock may be priced above what its earnings growth justifies.

Limitations:PEG ratios are less reliable for financial firms (earnings driven by interest margins), companies with negative/zero earnings growth, and hypergrowth companies (>100% growth) where the ratio may appear misleadingly low. Always use PEG alongside other valuation metrics.