# Spotify Technology S.A. (SPOT) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Communication Services / Diversified Telecommunication Services. Price $542.43, market value $111.5 billion.

## Valuation
- **P/E (trailing): 29.4×** (5-yr avg 68.3×, 3-yr avg 68.3×). Spotify Technology S.A. trades at 29.4× trailing earnings, well below its own five-year average of 68.3×: cheap by its own standards. The Communication Services median in the September 2026 study was 21.1×. Forward P/E is 30.1×, higher than trailing, so analysts expect earnings to fall.
- **PEG: 0.33**. A PEG of 0.33 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 5.3×**. Each dollar of revenue is priced at 5.3×.
- **Price / book: 11.4×**. The shares trade at 11.4× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 24.9×**. Enterprise value is 24.9× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Free-cash-flow yield: 3.4%** (5-yr avg 1.5%). Free cash flow equals 3.4% of the market value, above its five-year average of 1.5%, so the shares are cheaper on cash than they have usually been.
- **Earnings yield: 3.4%**. The inverse of the P/E: 3.4% of the price is earned each year.

## Profitability
- **Gross margin: 32.8%**. Spotify Technology S.A. keeps 32.8% of revenue after the direct cost of what it sells.
- **Operating margin: 14.6%**. 14.6% of revenue is left after running the business.
- **Net margin: 12.9%**. 12.9% of each dollar of sales reaches the bottom line.
- **Return on equity: 26.6%**. 26.6% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 82.3%**. Return on all capital, debt included, is 82.3%: comfortably above what that capital costs.
- **Return on assets: 22.2%**. Each dollar of assets produces 22.2% of profit.

## Growth
- **Revenue growth (1 yr): 9.7%** (3-yr 13.6%/yr, 5-yr 16.9%/yr). Revenue grew 9.7% over the last year, against 16.9% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 91.1%**. Earnings per share rose 91.1%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 415.2%/yr**. Free cash flow has compounded at 415.2% a year over three years.

## Financial health
- **Debt to equity: 0.00**. Debt is 0.00 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Spotify Technology S.A. holds more cash than debt.
- **Interest coverage: 88.4×**. Operating profit covers interest 88.4× over, a safe margin.
- **Altman Z-score: 12.41**. A Z-score of 12.41 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend: none**. Spotify Technology S.A. does not currently pay a dividend, but it returned 1.0% of its market value through buybacks over the last year.

## Analyst view
- **Analyst consensus: buy** (39 analysts). 39 analysts cover Spotify Technology S.A.; the consensus is buy, with an average price target of $613.66 (+13% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -22.9%** (YTD -6.6%, 3-mo 9.2%). The shares are down 22.9% over twelve months including dividends.
- **From 52-week high: -27.2%** (33.9% above the low). Trading 27% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 56**. An RSI of 56 is neutral.
- **Beta (1 yr): 0.41** (volatility 44%). Beta of 0.41 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=SPOT · Page: https://foliofundamentals.com/stocks/spot

Not investment advice.