SPOT Valuation

Spotify Technology SA

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732.810

+34.31(4.912%)1D

Overview
Forecast
Valuation
Earnings

SPOT Relative Valuation

SPOT's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, SPOT is overvalued; if below, it's undervalued.

Historical Valuation

Spotify Technology SA (SPOT) is now in the Undervalued zone, suggesting that its current forward PS ratio of 6.97 is considered Undervalued compared with the five-year average of -81.23. The fair price of Spotify Technology SA (SPOT) is between 1227.70 to 1498.57 according to relative valuation methord. Compared to the current price of 732.81 USD , Spotify Technology SA is Undervalued By 40.31%.

Relative Value

Fair Zone

1227.70-1498.57

Current Price：732.81

40.31%

Undervalued

64.47

Trailing

Forward

48.50

EV/EBITDA

Spotify Technology SA. (SPOT) has a current EV/EBITDA of 48.50. The 5-year average EV/EBITDA is -30.64. The thresholds are as follows: Strongly Undervalued below -547.23, Undervalued between -547.23 and -288.93, Fairly Valued between 227.66 and -288.93, Overvalued between 227.66 and 485.96, and Strongly Overvalued above 485.96. The current Forward EV/EBITDA of 48.50 falls within the Historic Trend Line -Fairly Valued range.

50.68

EV/EBIT

Spotify Technology SA. (SPOT) has a current EV/EBIT of 50.68. The 5-year average EV/EBIT is 302.19. The thresholds are as follows: Strongly Undervalued below -2981.32, Undervalued between -2981.32 and -1339.56, Fairly Valued between 1943.95 and -1339.56, Overvalued between 1943.95 and 3585.70, and Strongly Overvalued above 3585.70. The current Forward EV/EBIT of 50.68 falls within the Historic Trend Line -Fairly Valued range.

6.97

Spotify Technology SA. (SPOT) has a current PS of 6.97. The 5-year average PS is 3.39. The thresholds are as follows: Strongly Undervalued below 0.17, Undervalued between 0.17 and 1.78, Fairly Valued between 5.00 and 1.78, Overvalued between 5.00 and 6.61, and Strongly Overvalued above 6.61. The current Forward PS of 6.97 falls within the Strongly Overvalued range.

41.47

P/OCF

Spotify Technology SA. (SPOT) has a current P/OCF of 41.47. The 5-year average P/OCF is 171.10. The thresholds are as follows: Strongly Undervalued below -864.88, Undervalued between -864.88 and -346.89, Fairly Valued between 689.09 and -346.89, Overvalued between 689.09 and 1207.08, and Strongly Overvalued above 1207.08. The current Forward P/OCF of 41.47 falls within the Historic Trend Line -Fairly Valued range.

42.00

P/FCF

Spotify Technology SA. (SPOT) has a current P/FCF of 42.00. The 5-year average P/FCF is 110.08. The thresholds are as follows: Strongly Undervalued below -175.27, Undervalued between -175.27 and -32.59, Fairly Valued between 252.76 and -32.59, Overvalued between 252.76 and 395.43, and Strongly Overvalued above 395.43. The current Forward P/FCF of 42.00 falls within the Historic Trend Line -Fairly Valued range.

Spotify Technology SA (SPOT) has a current Price-to-Book (P/B) ratio of 19.45. Compared to its 3-year average P/B ratio of 14.43 , the current P/B ratio is approximately 34.80% higher. Relative to its 5-year average P/B ratio of 14.62, the current P/B ratio is about 33.01% higher. Spotify Technology SA (SPOT) has a Forward Free Cash Flow (FCF) yield of approximately 2.19%. Compared to its 3-year average FCF yield of 1.29%, the current FCF yield is approximately 69.27% lower. Relative to its 5-year average FCF yield of 1.08% , the current FCF yield is about 103.32% lower.

19.45

P/B

Median3y

14.43

Median5y

14.62

2.19

FCF Yield

Median3y

1.29

Median5y

1.08

Competitors Valuation Multiple

The average P/S ratio for SPOT's competitors is 44.58, providing a benchmark for relative valuation. Spotify Technology SA Corp (SPOT) exhibits a P/S ratio of 6.97, which is -84.36% above the industry average. Given its robust revenue growth of 10.14%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

SPOT.N

Spotify Technology SA

Performance Decomposition

Market capitalization of SPOT increased by 113.72% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 49.09 to 163.00.

The secondary factor is the Revenue Growth, contributed 10.14%to the performance.

Overall, the performance of SPOT in the past 1 year is driven by P/E Change. Which is more unsustainable.

10.14%

3.81B → 4.19B

Revenue Growth

-128.47%

7.20 → -2.05

Margin Expansion

232.05%

49.09 → 163.00

P/E Change

113.72%