Should Investors Buy Shopify Stock at its 14.02X Price/Sales?
Shopify SHOP shares are trading at a premium, as suggested by its Value Score of D. In terms of 12-month Price/Sales (P/S), SHOP is currently trading at 14.02X compared with the Zacks Computer & Technology sector’s 6.31X and the Zacks Internet-Services industry’s 6.11X.
The premium can be attributed to Shopify’s robust revenue growth and strong prospects.
Image Source: Zacks Investment Research
Shopify shares have appreciated 53.6% in the year-to-date period, outperforming the broader sector’s return of 31.8% and the industry’s return of 22.5%.
Image Source: Zacks Investment Research
However, at such a premium valuation, the question that arises is whether it…
