Spotify Technology S.A. (SPOT) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-55.6%

$265.57

vs $598.73 price

Levered DCF

$408.81

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

12.74

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	45.89×	76.2×	-62.27×	-33.06×	-1,143.37×	-83.05×	-129.47×	-224.94×
P/B	12.19×	15.69×	13.12×	5.92×	18.58×	17.22×	11.85×	8.37×
P/S	5.91×	5.53×	2.5×	1.21×	4.07×	6.13×	3.57×	3.33×
EV / EBITDA	41.67×	56.06×	-102.55×	-84.97×	92.33×	-87.72×	-23,688.77×	-123.28×
Gross margin	32.0%	30.1%	25.6%	25.0%	26.8%	25.6%	25.5%	25.7%
Operating margin	12.8%	8.7%	-3.4%	-5.6%	1.0%	-3.7%	-1.1%	-0.8%
Net margin	12.9%	7.3%	-4.0%	-3.7%	-0.4%	-7.4%	-2.7%	-1.5%
Current ratio	1.72×	1.88×	1.29×	1.24×	1.36×	0.82×	0.91×	1.05×
Debt / equity	0.23×	0.38×	0.67×	0.7×	0.84×	0.21×	0.31×	0×
Interest coverage	70.9×	37.92×	-11.74×	-16.07×	2.35×	-5.83×	-1.72×	-7.17×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	26.6%	20.6%	-21.1%	-17.9%	-1.6%	-20.7%	-9.1%	-3.7%
Return on invested capital	20.9%	15.2%	-10.5%	-16.0%	-0.3%	-7.0%	-2.7%	-0.9%
Return on assets	14.7%	9.5%	-6.4%	-5.6%	-0.5%	-9.2%	-3.6%	-1.8%
Free cash flow yield	2.8%	2.6%	2.0%	0.1%	0.7%	0.4%	1.8%	1.2%
Earnings yield	2.2%	1.3%	-1.6%	-3.0%	-0.1%	-1.2%	-0.8%	-0.4%
Enterprise value	$98.2B	$84B	$31.7B	$13.4B	$38.4B	$47.7B	$23.7B	$16.6B
Net debt / EBITDA	-1.4×	-1.81×	4.59×	5.06×	-2.31×	1.06×	443×	6.6×
Cash conversion cycle (days)	-5	-12	-0	-3	-4	-5	-5	0