Overview Dividends

(SPOT) Spotify Technology - Ratings and Ratios

Exchange: NYSE • Country: Luxembourg • Currency: USD • Type: Common Stock • ISIN: LU1778762911

Audio Streaming, Music, Podcasts, Premium Subscriptions, Ad-Supported

SPOT EPS (Earnings per Share)

EPS Growth (3Y CAGR): 17.25%
EPS Trend (3Y Correlation): 69.7%

SPOT Revenue

Revenue Growth (3Y CAGR): 12.46%
Revenue Trend (3Y Correlation): 97.2%

Description: SPOT Spotify Technology September 25, 2025

Spotify Technology S.A. operates a global audio-streaming platform that offers both a paid “Premium” tier and a free “Ad-Supported” tier, delivering music and podcasts to users on smartphones, tablets, computers and other connected devices.

The Premium segment provides unlimited on- and offline access without ads, sold directly to consumers through monthly subscriptions. The Ad-Supported segment delivers on-demand music and free podcast streaming, monetized via programmatic and direct audio advertising.

Beyond streaming, Spotify generates ancillary revenue through services such as sales, distribution, marketing support, contract research and development, and customer-service operations. The company was incorporated in 2006 and is headquartered in Luxembourg City.

Recent performance highlights include a 15 % YoY increase in Monthly Active Users (MAUs) to 725 million in Q2 2024, driven largely by growth in emerging markets, and a 22 % rise in ad-revenue YoY as advertisers shift spend toward audio-first formats. A key sector driver is the accelerating adoption of podcasts, which now represent roughly 30 % of total listening minutes and are central to Spotify’s long-term differentiation strategy.

For a deeper quantitative dive into Spotify’s valuation metrics and scenario analysis, you may find ValueRay’s research platform a useful next step.

SPOT Stock Overview

Market Cap in USD	138,665m
Sub-Industry	Movies & Entertainment
IPO / Inception	2018-04-03

SPOT Stock Ratings

Growth Rating	85.4%
Fundamental	85.8%
Dividend Rating	-
Return 12m vs S&P 500	40.2%
Analyst Rating	4.05 of 5

SPOT Dividends

Currently no dividends paid

SPOT Growth Ratios

Growth Correlation 3m	-43.1%
Growth Correlation 12m	85.1%
Growth Correlation 5y	49.9%
CAGR 5y	111.17%
CAGR/Max DD 3y (Calmar Ratio)	4.14
CAGR/Mean DD 3y (Pain Ratio)	19.79
Sharpe Ratio 12m	1.74
Alpha	39.09
Beta	1.674
Volatility	37.69%
Current Volume	1609.4k
Average Volume 20d	1294.7k
Stop Loss	630.4 (-3.8%)
Signal	-0.43

Piotroski VR‑10 (Strict, 0-10) 6.0

Net Income (806.0m TTM) > 0 and > 6% of Revenue (6% = 996.8m TTM)

FCFTA 0.21 (>2.0%) and ΔFCFTA 8.05pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue 18.02% (prev 15.77%; Δ 2.25pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.21 (>3.0%) and CFO 2.85b > Net Income 806.0m (YES >=105%, WARN >=100%)

Net Debt (-2.78b) to EBITDA (1.42b) ratio: -1.96 <= 3.0 (WARN <= 3.5)

Current Ratio 1.47 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (205.4m) change vs 12m ago -0.34% (target <= -2.0% for YES)

Gross Margin 31.63% (prev 27.51%; Δ 4.12pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 140.6% (prev 142.8%; Δ -2.18pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 38.44 (EBITDA TTM 1.42b / Interest Expense TTM 34.0m) >= 6 (WARN >= 3)

Altman Z'' 1.57

(A) 0.22 = (Total Current Assets 9.32b - Total Current Liabilities 6.32b) / Total Assets 13.49b

(B) -0.22 = Retained Earnings (Balance) -2.91b / Total Assets 13.49b

(D) 0.07 = Book Value of Equity 470.1m / Total Liabilities 6.85b

Total Rating: 1.57 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 85.82

1. Piotroski 6.0pt = 1.0

2. FCF Yield 2.41% = 1.20

3. FCF Margin 16.97% = 4.24

4. Debt/Equity 0.36 = 2.44

5. Debt/Ebitda -1.96 = 2.50

6. ROIC - WACC (= 53.20)% = 12.50

7. RoE 14.00% = 1.17

8. Rev. Trend 97.17% = 7.29

9. EPS Trend 69.69% = 3.48

What is the price of SPOT shares?

As of November 01, 2025, the stock is trading at USD 655.32 with a total of 1,609,400 shares traded.
Over the past week, the price has changed by +1.48%, over one month by -6.11%, over three months by +4.59% and over the past year by +70.17%.

Is Spotify Technology a good stock to buy?

Yes, based on ValueRay´s Fundamental Analyses, Spotify Technology (NYSE:SPOT) is currently (November 2025) a good stock to buy. It has a ValueRay Fundamental Rating of 85.82 and therefor a positive outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of SPOT is around 751.67 USD . This means that SPOT is currently undervalued and has a potential upside of +14.7% (Margin of Safety).

Is SPOT a buy, sell or hold?

Spotify Technology has received a consensus analysts rating of 4.05. Therefore, it is recommended to buy SPOT.

Strong Buy: 19
Buy: 6
Hold: 13
Sell: 2
Strong Sell: 0

What are the forecasts/targets for the SPOT price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	742.3	13.3%
Analysts Target Price	742.3	13.3%
ValueRay Target Price	864	31.8%

SPOT Fundamental Data Overview October 25, 2025

Market Cap EUR = 119.85b (138.67b USD * 0.8643 USD.EUR)
P/E Trailing = 151.5916
P/E Forward = 51.5464
P/S = 8.3468
P/B = 18.7157
P/EG = 1.7594
Beta = 1.674
Revenue TTM = 16.61b EUR
EBIT TTM = 1.31b EUR
EBITDA TTM = 1.42b EUR
Long Term Debt = 453.0m EUR (from longTermDebtTotal, last quarter)
Short Term Debt = 1.93b EUR (from shortTermDebt, last quarter)
Debt = 2.39b EUR (from shortLongTermDebtTotal, last quarter)
Net Debt = -2.78b EUR (from netDebt column, last quarter)
Enterprise Value = 117.07b EUR (119.85b + Debt 2.39b - CCE 5.16b)
Interest Coverage Ratio = 38.44 (Ebit TTM 1.31b / Interest Expense TTM 34.0m)
FCF Yield = 2.41% (FCF TTM 2.82b / Enterprise Value 117.07b)
FCF Margin = 16.97% (FCF TTM 2.82b / Revenue TTM 16.61b)
Net Margin = 4.85% (Net Income TTM 806.0m / Revenue TTM 16.61b)
Gross Margin = 31.63% ((Revenue TTM 16.61b - Cost of Revenue TTM 11.36b) / Revenue TTM)
Gross Margin QoQ = 31.48% (prev 31.65%)
Tobins Q-Ratio = 8.68 (Enterprise Value 117.07b / Total Assets 13.49b)
Interest Expense / Debt = 0.34% (Interest Expense 8.00m / Debt 2.39b)
Taxrate = 279.2% (out of range, set to none) (134.0m / 48.0m)
NOPAT = unknown (EBIT/Op.Income or Taxrate missing)
Current Ratio = 1.47 (Total Current Assets 9.32b / Total Current Liabilities 6.32b)
Debt / Equity = 0.36 (Debt 2.39b / totalStockholderEquity, last quarter 6.64b)
Debt / EBITDA = -1.96 (Net Debt -2.78b / EBITDA 1.42b)
Debt / FCF = -0.99 (Net Debt -2.78b / FCF TTM 2.82b)
Total Stockholder Equity = 5.76b (last 4 quarters mean from totalStockholderEquity)
RoA = 5.97% (Net Income 806.0m / Total Assets 13.49b)
RoE = 14.00% (Net Income TTM 806.0m / Total Stockholder Equity 5.76b)
RoCE = 21.05% (EBIT 1.31b / Capital Employed (Equity 5.76b + L.T.Debt 453.0m))
RoIC = 65.14% (EBIT 1.31b / (Assets 13.49b - Curr.Liab 6.32b - Cash 5.16b))
WACC = 11.94% (E(119.85b)/V(122.24b) * Re(12.18%) + (debt cost/tax rate unavailable))
Discount Rate = 12.18% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 2.08%
[DCF Debug] Terminal Value 69.17% ; FCFE base≈2.21b ; Y1≈2.73b ; Y5≈4.66b
Fair Price DCF = 206.7 (DCF Value 42.53b / Shares Outstanding 205.8m; 5y FCF grow 25.0% → 3.0% )
EPS Correlation: 69.69 | EPS CAGR: 17.25% | SUE: -3.84 | # QB: 0
Revenue Correlation: 97.17 | Revenue CAGR: 12.46% | SUE: -0.21 | # QB: 0

Additional Sources for SPOT Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle