SPOT PE Ratio & Valuation, Is SPOT Overvalued

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 -42.44. The fair price of Spotify Technology SA (SPOT) is between 864.20 to 1142.10 according to relative valuation method. Compared to the current price of 533.20 USD , Spotify Technology SA By Undervalued By 38.3%.

Relative Value

Fair Zone

864.20-1142.10

Current Price：533.20

38.3%

Undervalued

P/E

EV/EBITDA

EV/EBIT

P/S

P/OCF

P/FCF

Trailing

Forward

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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 15.93, the current P/B ratio is approximately -18.39% higher. Relative to its 5-year average P/B ratio of 14.27, the current P/B ratio is about -8.86% 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 1.54%, the current FCF yield is approximately 87.06% lower. Relative to its 5-year average FCF yield of 1.26%, the current FCF yield is about 129.30% lower.

Competitors Valuation Multiple

AI Analysis

The average P/S ratio for SPOT competitors is 31.58, providing a benchmark for relative valuation. Spotify Technology SA Corp (SPOT.N) exhibits a P/S ratio of 5.32, which is -83.16% above the industry average. Given its robust revenue growth of 6.81%, this premium appears unsustainable.

P/E

P/S

EV/EBITDA

EV/EBIT

Earnings Growth

Market Cap

Performance Decomposition

AI Analysis

Market capitalization of SPOT increased by 0.00% over the past 1 year(s). The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.

The secondary factor is the Unknown, contributed 0.00% to the performance.

Overall, the performance of SPOT in the past 1 year(s) is driven by Unknown.

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Frequently Asked Questions

Is SPOT currently overvalued or undervalued?

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 864.20 to 1142.10 according to relative valuation method.

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 6.81%, this premium appears unsustainable.

What is the current P/B ratio for Spotify Technology SA (SPOT) as of Mar 10 2026?

As of Mar 10 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 Mar 10 2026?

As of Mar 10 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 Mar 10 2026?

As of Mar 10 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 Mar 10 2026?

As of Mar 10 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.

SPOT Valuation