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 Fair zone, suggesting that its current forward PS ratio of 0.00 is considered Fairly compared with the five-year average of -68.11. The fair price of Spotify Technology SA (SPOT) is between NaN to NaN according to relative valuation methord.
Relative Value
Fair Zone
NaN-NaN
Current Price：560.97
Fair
43.24
PE
1Y
3Y
5Y
Trailing
Forward
32.69
EV/EBITDA
Spotify Technology SA. (SPOT) has a current EV/EBITDA of 32.69. The 5-year average EV/EBITDA is 2.84. The thresholds are as follows: Strongly Undervalued below -448.33, Undervalued between -448.33 and -222.75, Fairly Valued between 228.42 and -222.75, Overvalued between 228.42 and 454.00, and Strongly Overvalued above 454.00. The current Forward EV/EBITDA of 32.69 falls within the Historic Trend Line -Fairly Valued range.
33.54
EV/EBIT
Spotify Technology SA. (SPOT) has a current EV/EBIT of 33.54. The 5-year average EV/EBIT is 318.53. The thresholds are as follows: Strongly Undervalued below -2958.39, Undervalued between -2958.39 and -1319.93, Fairly Valued between 1956.99 and -1319.93, Overvalued between 1956.99 and 3595.44, and Strongly Overvalued above 3595.44. The current Forward EV/EBIT of 33.54 falls within the Historic Trend Line -Fairly Valued range.
5.19
PS
Spotify Technology SA. (SPOT) has a current PS of 5.19. The 5-year average PS is 3.50. The thresholds are as follows: Strongly Undervalued below 0.02, Undervalued between 0.02 and 1.76, Fairly Valued between 5.24 and 1.76, Overvalued between 5.24 and 6.98, and Strongly Overvalued above 6.98. The current Forward PS of 5.19 falls within the Historic Trend Line -Fairly Valued range.
27.75
P/OCF
Spotify Technology SA. (SPOT) has a current P/OCF of 27.75. The 5-year average P/OCF is 168.80. The thresholds are as follows: Strongly Undervalued below -868.62, Undervalued between -868.62 and -349.91, Fairly Valued between 687.51 and -349.91, Overvalued between 687.51 and 1206.22, and Strongly Overvalued above 1206.22. The current Forward P/OCF of 27.75 falls within the Historic Trend Line -Fairly Valued range.
27.51
P/FCF
Spotify Technology SA. (SPOT) has a current P/FCF of 27.51. The 5-year average P/FCF is 106.38. The thresholds are as follows: Strongly Undervalued below -181.17, Undervalued between -181.17 and -37.39, Fairly Valued between 250.16 and -37.39, Overvalued between 250.16 and 393.94, and Strongly Overvalued above 393.94. The current Forward P/FCF of 27.51 falls within the Historic Trend Line -Fairly Valued range.
Spotify Technology SA (SPOT) has a current Price-to-Book (P/B) ratio of 12.74. Compared to its 3-year average P/B ratio of 15.28 , the current P/B ratio is approximately -16.63% higher. Relative to its 5-year average P/B ratio of 14.52, the current P/B ratio is about -12.30% higher. Spotify Technology SA (SPOT) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 1.41%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 1.19% , the current FCF yield is about -100.00% lower.
12.74
P/B
Median3y
15.28
Median5y
14.52
2.96
FCF Yield
Median3y
1.41
Median5y
1.19
Competitors Valuation Multiple
The average P/S ratio for SPOT's competitors is , providing a benchmark for relative valuation. Spotify Technology SA Corp (SPOT) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 7.12%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of SPOT increased by 25.39% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 7.52 to 21.04.
The secondary factor is the Revenue Growth, contributed 7.12%to the performance.
Overall, the performance of SPOT in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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