Internet Content & Information · NYSE
Current Price
$443.57
Intrinsic Value
Use the calculator below to estimate
Run a PE ratio stock valuation on Spotify Technology S.A. with auto-filled earnings data, adjustable target PE, and instant fair value estimate.
Spotify Technology S.A., together with its subsidiaries, provides audio streaming services worldwide. It operates through Premium and Ad-Supported segments. The Premium segment offers unlimited online and offline streaming access to its catalog of music and podcasts without commercial breaks to its subscribers. The Ad-Supported segment provides on-demand online access to its catalog of music and unlimited online access to the catalog of podcasts to its subscribers on their computers, tablets, and compatible mobile devices. The company also offers sales, marketing, contract research and development, and customer support services. As of December 31, 2021, its platform included 406 million monthly active users and 180 million premium subscribers in 184 countries and territories. The company was incorporated in 2006 and is based in Luxembourg, Luxembourg.
Earnings Yield
3.48%
ROE (TTM)
35.3%
Based on trailing twelve-month data, SPOT has earnings per share of N/A and trades at a PE ratio of N/A. These are key inputs for stock valuation using the PE ratio method.
The trailing twelve-month PE ratio of SPOT reflects how much investors pay per dollar of Spotify Technology S.A.'s earnings. This metric is most useful when compared to Internet Content & Information peers and the company's own historical range.
Whether SPOT is overvalued depends on comparing its PE ratio to Internet Content & Information peers, historical averages, and growth expectations. A PE above the sector average may indicate overvaluation, but high-growth companies often command premium multiples. Consider pairing PE analysis with a DCF model for a more complete picture.
To value Spotify Technology S.A. using PE: (1) Compare the current PE against the Internet Content & Information median to assess relative pricing, (2) check the PEG ratio to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
The PEG ratio divides the PE ratio by the expected earnings growth rate, providing a growth-adjusted valuation metric. A PEG below 1.0 may indicate undervaluation relative to growth, while above 2.0 may suggest overvaluation. PEG is most reliable for companies with stable, predictable earnings growth.
PE ratio gives a quick relative read — how SPOT is priced versus Internet Content & Information peers. DCF provides an absolute value based on projected free cash flows. For SPOT, with a strong ROE of 35.3%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
