Discounted Cash Flow

Shopify Inc.

SHOP · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $389.3m $-35.4m $-9.8m -9.1%
2017 $673.3m (72.9%) $-40.0m (-13.1%) $-12.1m (-24.5%) -5.9% (34.6%)
2018 $1.1b (59.4%) $-64.6m (-61.4%) $-18.6m (-53.4%) -6.0% (-1.3%)
2019 $1.6b (47.0%) $-124.8m (-93.4%) $13.9m (174.4%) -7.9% (-31.5%) $-1.10
2020 $2.9b (85.6%) $319.5m (355.9%) $383.2m (2665.8%) 10.9% (237.9%) $2.67 (342.7%)
2021 $4.6b (57.4%) $2.9b (812.2%) $453.6m (18.4%) 63.2% (479.5%) $23.38 (775.7%)
2022 $5.6b (22.4%) $-3.5b (-218.7%) $-186.0m (-141.0%) -61.3% (-197.0%) $-2.73 (-111.7%)
2023 $7.2b (27.6%) $132.0m (103.8%) $905.0m (586.6%) 1.8% (103.0%) $0.10 (103.7%)
2024 $8.9b (23.2%) $2.0b (1429.5%) $1.6b (76.5%) 22.7% (1141.4%) $1.57 (1470.0%)
2025 $11.6b (30.1%) $1.2b (-39.0%) $2.0b (25.7%) 10.7% (-53.1%) $0.95 (-39.5%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model