TL;DR: Start with verified earnings and a defensible comparable-deal multiple. StoreInspect's February 3, 2026 study of 83,258 stored records measures public technology and estimated scale, not selling prices or profit. Use those observations to investigate operating costs and transfer requirements; they cannot validate claimed revenue or set a valuation premium.
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Calculate earnings before applying a multiple
A valuation worksheet should separate the earnings basis, multiple and deal adjustments:
Illustrative operating value = normalized annual earnings × selected multiple
Illustrative price bridge = operating value + agreed assets − agreed liabilities
For an owner-operated business, Seller's Discretionary Earnings (SDE) aims to describe the benefit available to one working owner. For a business run by paid management, adjusted EBITDA keeps necessary management compensation in the operating cost base. Do not apply an EBITDA multiple to an SDE figure.
FE International's September 22, 2026 broker guide describes a broad 2–4× SDE range for owner-operated ecommerce businesses and 3–6× EBITDA for established brands with management depth. Those are broker observations, not guaranteed Shopify outcomes or a substitute for comparable completed deals. The earnings basis also depends on the business and buyer, rather than a rigid $5 million switch. FE International's valuation guide, checked October 10, 2026, provides the context.
A worked SDE example
These inputs are hypothetical:
| Annual item | Amount |
|---|---|
| Net sales | $500,000 |
| Cost of goods sold | −$200,000 |
| Operating expenses, including the owner costs below | −$150,000 |
| Marketing | −$80,000 |
| Reported profit in this simplified example | $70,000 |
| Owner salary already included in operating expenses | +$60,000 |
| Owner benefit already included in operating expenses | +$8,000 |
| Illustrative SDE before other normalizations | $138,000 |
| Assumed SDE multiple | ×2.5 |
| Illustrative operating value | $345,000 |
An expense can be added back only if it was actually deducted and the adjustment is justified for the buyer. Recurring business costs cannot become “one-time” merely because the seller wants a higher earnings figure. Do not add the owner's pay twice.
The owner-operator still supplies labor. If the buyer needs a manager to perform that work, include the replacement cost in a separate managed-operation earnings case. Have the financial records and proposed add-backs reviewed on their actual accounting basis.
Keep the range arithmetic explicit
If hypothetical annual SDE is $80,000, an assumed 1.5–2.5× sensitivity range produces $120,000–$200,000. This is arithmetic, not a claim that those multiples apply to a particular store. “Under $100,000” cannot establish a $150,000 minimum value.
Document inventory, working capital, cash, debt, tax, transaction costs and any earnout separately according to the agreed deal structure. Inventory may be included, added separately or discounted based on condition and terms; avoid double-counting it.
What the StoreInspect research contributes
The retained web/scripts/blog-data/valuation-stats.ts and valuation-data-summary.md were collected on February 3, 2026. The tier table uses stored rows with a non-null estimated traffic tier:
| Estimated tier | Stored rows | Mean stored app entries | Mean stored pixel entries |
|---|---|---|---|
| Under 50K | 35,336 | 1.6 | 3.9 |
| 50K–200K | 9,579 | 2.4 | 5.7 |
| 200K–1M | 36,698 | 2.2 | 5.8 |
| 1M–5M | 798 | 3.1 | 5.9 |
| 5M–20M | 791 | 2.9 | 5.4 |
The bands total 83,202, with 56 unknown-tier records outside them. App counts include raw detections such as payments. Field observation ages were not bounded in this extract. Traffic estimates and stored Plus flags are heuristic; the source itself warns about Plus false positives and selection bias.
The separate comparison selected 1,459 records in the 1M–5M or 5M–20M tiers with a stored Plus flag, and 16,418 under-50K records with an explicit false Plus flag:
| Stored cohort | Mean app entries | Mean pixel entries |
|---|---|---|
| 1M–20M estimated tiers with Plus flag | 3.2 | 6.0 |
| Under 50K with false Plus flag | 0.8 | 1.4 |
These are defined technology/scale cohorts. The former “high-value” and “low-value” labels have been removed because the query contains no completed sales, SDE or merchant financials. A fourfold app-count difference does not establish a fourfold value, paid software spend or a minimum revenue.
Lead scores reuse technology and scale inputs. They are not independent evidence that one business is more investable. A free Dawn theme, few visible apps or a standard plan cannot invalidate a seller's revenue.
Use technology to request operational evidence
The Store Inspector extension can collect public context. Convert it into questions that can be answered with authorized access:
| Public observation | Operational diligence question |
|---|---|
| Email integration signature | Which flows, contracts, lists and permissions transfer? |
| Support widget | What are ticket volume, staffing, cost and account-transfer requirements? |
| Subscription integration | Which active subscriptions, churn definitions and obligations exist? |
| Many scripts or pixels | Which integrations are active, necessary and correctly measured? |
| Theme identity or custom code | Who owns the license/code, and what maintenance is required? |
| Stored Plus flag | Can the merchant confirm the current plan, contract and required features? |
Inspect native and backend alternatives before declaring a function absent. Public signatures can miss apps or remain after use stops. Plus detection and traffic research explain the limits.
A plan price is an operating-cost question, not an automatic multiple premium. Do not add fixed +0.2× increments for Plus, age or email tools without matching transaction evidence.
Reconcile the financial evidence
Ask for authorized, appropriately scoped records covering the same periods:
- The profit-and-loss statements and accounting policies.
- Shopify order and sales reports, refunds and discounts.
- Payment-processor transactions, fees, holds and payouts.
- Bank receipts matched to settlement periods.
- Inventory movement, supplier invoices and fulfillment costs.
- Marketing and software invoices.
- Owner labor, payroll and contractor costs.
- Tax and contractual records relevant to the proposed deal.
Gross sales, reported net sales, processor payouts and bank deposits are different amounts. Build a bridge for fees, refunds, taxes, reserves, foreign exchange and timing. Shopify's payout documentation links the activity report and payout details, checked October 10, 2026.
A difference is an item to explain, not automatic fraud. An arbitrary 5–10% tolerance can hide a material issue. Retain the source, period, calculation and explanation for each adjustment.
Select comparisons and assess risk
A marketplace asking price is not a completed sale. If using a broker or marketplace comparison, record its transaction date, earnings basis, business model, inventory treatment, owner workload and deal structure.
| Risk to investigate | Evidence needed |
|---|---|
| Product or channel concentration | Revenue and contribution by product/channel |
| Declining performance | Consistent monthly earnings and cohort data |
| Supplier dependence | Contracts, alternatives and transfer rights |
| Owner dependence | Actual work performed and replacement cost |
| Refunds and disputes | Causes, period, costs and unresolved liabilities |
| Customer repeat behavior | Order cohorts, refunds and acquisition cost |
| Brand and technical assets | Ownership, licenses and transferability |
Assess these together; their effects are not independent additive multiple adjustments. A high traffic estimate or impressive app stack cannot compensate for unsupported earnings.
Choose an adviser or sales channel on actual terms
Flippa, Empire Flippers, FE International, Acquire.com and OpenStore are places to investigate relevant offers or listings. This guide does not rank their accuracy, retain unchecked commission/minimum tables or promise that a broker's fee pays for itself.
Obtain the current written fee, eligibility, exclusivity, diligence, transfer and payment terms before selecting a service. Confirm what is vetted and what remains your responsibility. Use account authorization mechanisms rather than sending Shopify passwords.
Prepare an evidence pack
Keep the original financial records, reconciliation worksheet and add-back evidence together. Document owner tasks, supplier and software transfer requirements, inventory condition and ongoing commitments. State which figures are confirmed and which remain estimates.
The preparation and sale timeline depends on the business, buyer, financing and required approvals. The old universal 6–12-month sale schedule has been removed. Define milestones around completed evidence and closing conditions.
For the acquisition workflow, see how to buy a Shopify store. StoreInspect for investors can support public operational screening; financial valuation still requires merchant records.
Common questions
What is the average Shopify store worth?
This dataset has no measured valuations. Calculate the specific business's normalized earnings, investigate comparable completed deals and document the price adjustments.
Does Plus make a store worth more?
A stored Plus flag does not establish a valuation premium. Confirm the plan and assess the features, cost and transfer requirements that matter to the buyer.
Can an online calculator replace diligence?
A calculator applies assumptions to inputs. Check the earnings definition, multiple and asset treatment, then verify those inputs. This guide makes no measured accuracy claim for a calculator.
What should a seller do first?
Prepare consistent financial statements and a revenue-to-payout reconciliation, then document proposed add-backs and owner work. That gives a buyer something concrete to assess.
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