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 5.32 is considered Undervalued compared with the five-year average of -62.21. The fair price of Spotify Technology SA (SPOT) is between 928.10 to 1225.99 according to relative valuation methord. Compared to the current price of 569.62 USD , Spotify Technology SA is Undervalued By 38.63%.
Relative Value
Fair Zone
928.10-1225.99
Current Price：569.62
38.63%
Undervalued
44.18
PE
1Y
3Y
5Y
33.59
EV/EBITDA
Spotify Technology SA. (SPOT) has a current EV/EBITDA of 33.59. The 5-year average EV/EBITDA is 12.41. The thresholds are as follows: Strongly Undervalued below -400.72, Undervalued between -400.72 and -194.16, Fairly Valued between 218.97 and -194.16, Overvalued between 218.97 and 425.54, and Strongly Overvalued above 425.54. The current Forward EV/EBITDA of 33.59 falls within the Historic Trend Line -Fairly Valued range.
34.29
EV/EBIT
Spotify Technology SA. (SPOT) has a current EV/EBIT of 34.29. The 5-year average EV/EBIT is 294.00. The thresholds are as follows: Strongly Undervalued below -2857.59, Undervalued between -2857.59 and -1281.80, Fairly Valued between 1869.79 and -1281.80, Overvalued between 1869.79 and 3445.58, and Strongly Overvalued above 3445.58. The current Forward EV/EBIT of 34.29 falls within the Historic Trend Line -Fairly Valued range.
5.32
PS
Spotify Technology SA. (SPOT) has a current PS of 5.32. The 5-year average PS is 3.49. The thresholds are as follows: Strongly Undervalued below 0.02, Undervalued between 0.02 and 1.75, Fairly Valued between 5.23 and 1.75, Overvalued between 5.23 and 6.97, and Strongly Overvalued above 6.97. The current Forward PS of 5.32 falls within the Overvalued range.
28.52
P/OCF
Spotify Technology SA. (SPOT) has a current P/OCF of 28.52. The 5-year average P/OCF is 167.97. The thresholds are as follows: Strongly Undervalued below -870.66, Undervalued between -870.66 and -351.35, Fairly Valued between 687.28 and -351.35, Overvalued between 687.28 and 1206.59, and Strongly Overvalued above 1206.59. The current Forward P/OCF of 28.52 falls within the Historic Trend Line -Fairly Valued range.
28.25
P/FCF
Spotify Technology SA. (SPOT) has a current P/FCF of 28.25. The 5-year average P/FCF is 104.85. The thresholds are as follows: Strongly Undervalued below -183.39, Undervalued between -183.39 and -39.27, Fairly Valued between 248.96 and -39.27, Overvalued between 248.96 and 393.08, and Strongly Overvalued above 393.08. The current Forward P/FCF of 28.25 falls within the Historic Trend Line -Fairly Valued range.
Spotify Technology SA (SPOT) has a current Price-to-Book (P/B) ratio of 13.00. Compared to its 3-year average P/B ratio of 15.50 , the current P/B ratio is approximately -16.11% higher. Relative to its 5-year average P/B ratio of 14.40, the current P/B ratio is about -9.71% higher. Spotify Technology SA (SPOT) has a Forward Free Cash Flow (FCF) yield of approximately 2.88%. Compared to its 3-year average FCF yield of 1.46%, the current FCF yield is approximately 97.74% lower. Relative to its 5-year average FCF yield of 1.23% , the current FCF yield is about 134.85% lower.
13.00
P/B
Median3y
15.50
Median5y
14.40
2.88
FCF Yield
Median3y
1.46
Median5y
1.23
Competitors Valuation Multiple
The average P/S ratio for SPOT's competitors is 31.58, providing a benchmark for relative valuation. Spotify Technology SA Corp (SPOT) exhibits a P/S ratio of 5.32, which is -83.16% above the industry average. Given its robust revenue growth of 7.12%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of SPOT increased by 3.84% 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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Frequently Asked Questions
Is Spotify Technology SA (SPOT) currently overvalued or undervalued?
Spotify Technology SA (SPOT) is now in the Undervalued zone, suggesting that its current forward PS ratio of 5.32 is considered Undervalued compared with the five-year average of -62.21. The fair price of Spotify Technology SA (SPOT) is between 928.10 to 1225.99 according to relative valuation methord. Compared to the current price of 569.62 USD , Spotify Technology SA is Undervalued By 38.63% .
What is Spotify Technology SA (SPOT) fair value?
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. The fair price of Spotify Technology SA (SPOT) is between 928.10 to 1225.99 according to relative valuation methord.
How does SPOT's valuation metrics compare to the industry average?
The average P/S ratio for SPOT's competitors is 31.58, providing a benchmark for relative valuation. Spotify Technology SA Corp (SPOT) exhibits a P/S ratio of 5.32, which is -83.16% above the industry average. Given its robust revenue growth of 7.12%, this premium appears unsustainable.
What is the current P/B ratio for Spotify Technology SA (SPOT) as of Jan 08 2026?
As of Jan 08 2026, Spotify Technology SA (SPOT) has a P/B ratio of 13.00. This indicates that the market values SPOT at 13.00 times its book value.
What is the current FCF Yield for Spotify Technology SA (SPOT) as of Jan 08 2026?
As of Jan 08 2026, Spotify Technology SA (SPOT) has a FCF Yield of 2.88%. This means that for every dollar of Spotify Technology SA’s market capitalization, the company generates 2.88 cents in free cash flow.
What is the current Forward P/E ratio for Spotify Technology SA (SPOT) as of Jan 08 2026?
As of Jan 08 2026, Spotify Technology SA (SPOT) has a Forward P/E ratio of 44.18. This means the market is willing to pay $44.18 for every dollar of Spotify Technology SA’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Spotify Technology SA (SPOT) as of Jan 08 2026?
As of Jan 08 2026, Spotify Technology SA (SPOT) has a Forward P/S ratio of 5.32. This means the market is valuing SPOT at $5.32 for every dollar of expected revenue over the next 12 months.