Shopify Financial Model is a financial model of a Young, North American, High Growth, Technology Start-up, turned into an e-commerce market pioneer, that is ideal for investment banking, equity research, technology finance professionals and valuation experts. The model includes the following features:
- A 3-statement financial model of a high growth, technology company operation including: revenue schedule, cost schedule, working capital schedule, depreciation and amortization schedule, tax schedule, debt and interest schedule, shareholder’s equity schedule, covenants and credit statistics spanning across earnings quality, cash flow quality, operating efficiency, balance sheet quality and valuation risk metrics, income statement, cash flow statement and balance sheet for a ten year forecast period.
- Historical financial statements for a period of six years, company specific operating metrics, covenants and credit statistics including earnings quality, cash flow quality, operating efficiency, balance sheet quality and valuation risk metrics.
- Critical company specific operating and profitability metrics such as GMV, MRR, number of merchants and Non-IFRS measures among others.
- Annual financial statements built based on the quarterly actuals and forecasts of financial statements.
- Valuation of a young, high growth technology firm based on the intrinsic value approach given the excess growth period.
- Valuation of a young, high growth technology firm based on relative valuation and comparable analysis of peer group companies.
- Calculation of predicted multiples with respect to the sector and the degree of over/undervaluation relative to the sector.
- Option valuation of outstanding options for a young company that compensates employees through options.
- Sensitivity analysis of intrinsic valuation with respect to key revenue drivers and assumptions.
- Quantification of risk measures for purposes of valuation including beta, cost of equity and cost of capital.
- Operating, valuation and profitability charts of a young, high growth, technology firm.
- A summary dashboard of company report, market data, key financial metrics, annual figures, comps, valuation & statistics.
- The tabs of the models are: Cover, Summary, Assumptions, Annual, Historicals, Model, Valuation, Beta, Forward Multiples, Historical Multiples, Predicted Multiples and Notes.
- The model is a rolling, valuation model that can also be used for equity research.
- The initiation report as well as 2020Q1 equity research note are included with the package. The research reports describes the relative as well as intrinsic valuation of this young, high growth, technology company, option valuation, the operation and historical performance of the company as well as corporate governance issues in full details. The deviation of the share price on Summary tab from the 2020Q1 PDF note is due to the publication time during the trading day and market volatility.
Shopify Financial Model
Guidelines for a seamless access to and operation of the model
- This financial model is a circular, 3-statement model along with many other features explained in the product description. Please ensure prior to opening the excel sheet, iterative calculations within the excel workbook environment has been enabled under: File/Options/Formulas/Enable iterative calculations.
- Set the Calculation options under File/Options/Formulas to ‘Automatic except data tables’. In case of the existence of data tables in the models, press F9 to refresh and update the table calculations.
- The workbook contains a Macro in the form of the product Disclaimer which should be accepted by the user; hence, please enable macros in the workbook. The financial model itself contains no macros.
- Please ensure the above steps are implemented prior to opening the excel sheet.
- If at any point #Value! appears in the Model and the results, toggle the circularity switch on the Assumptions tab to ON and then OFF to address the problem. This switch sets all interest expenses to zero when turned ON.
- All blue font in the model are hardcoded inputs, black font is calculation, red font is the references to the blue inputs on the Assumptions tab, and any orange cells are values sourced from Refinitiv.