Spotify Technology S.A. SPOT
Composite 61/100; the shares have moved about 46% annualised. Names that move more contribute more risk for the same amount invested, and our composite reflects how strong the evidence for this one is right now.
Valuation ranks 25/100 — a strong mark against it.
Balance-sheet strength ranks 92/100 — a strong point in its favour. Growth ranks 80/100 — a strong point in its favour. Quality ranks 70/100 — a moderate point in its favour.
Valuation ranks 25/100 — a strong mark against it. Momentum ranks 36/100 — a moderate mark against it.
What the company does Spotify Technology S.A. operates a global audio streaming platform with two segments: Premium (subscription-based access to music, podcasts, and audiobooks) and Ad-Supported (limited free access). The company also provides ancillary services like distribution, marketing, and customer support, primarily via direct-to-consumer and partner channels.
Key financials Spotify reports strong profitability metrics: ROE 38%, ROA 12%, and ROCE 34%, with gross margins at 32% and net margins at 15%. Revenue growth is 8%, while EPS growth surged 222%. The balance sheet is conservative, with a debt-to-equity ratio of 0.06 and net debt/EBITDA of -2.38, supporting a current ratio of 2.06.
Stock health Momentum is mixed: +18% over 3 months but -16% over 12 months, with a -30% drawdown from the 52-week high. The RSI(14) stands at 66, indicating near-term overbought conditions. Sideravia scores highlight strong quality (76th percentile) but weak valuation (22nd percentile), with growth and strength pillars above 75.
Price vs fair value The stock trades at a **PREMIUM of 55.00%** versus our fair-value estimate of 235.17 and a **discount of 15.86%** to the 12-month target of 605.52. - Simply Wall St flags valuation as "fully valued" ahead of earnings (Simply Wall St). - Analysts note SPOT may be "priced for perfection" despite potential cash-flow upside (Simply Wall St). - Zacks highlights earnings growth expectations but questions whether the stock is "fully valued" (Zacks).
Looking forward Forward P/E of 33x and PEG of 40x suggest high expectations are baked into the price. Investors will focus on Q2 earnings (August 4) and subscriber growth trends to assess whether current valuations are sustainable.
This is not investment advice. Sideravia provides automated, data-driven analysis for information and education only. Nothing on this page is a personal recommendation or an invitation to buy or sell any security, and it does not consider your objectives or financial situation. Assessments are generated by rules applied uniformly to every covered stock — how our scores work.
Data as of 2026-09-05, compiled from third-party sources; errors and delays are possible and figures are not warranted. Investing puts your capital at risk; past performance does not predict future results. We publish our full track record, including the calls that lost, and our conflicts of interest.