11 years of historical data (2015–2025) · Communication Services · Internet Content & Information
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Spotify Technology S.A. trades at 43.3x earnings, 38% below its 5-year average of 69.4x, sitting at the 0th percentile of its historical range. Compared to the Communication Services sector median P/E of 15.1x, the stock trades at a premium of 186%. On a free-cash-flow basis, the stock trades at 32.3x P/FCF, 84% below the 5-year average of 207.9x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $106.0B | $122.2B | $92.6B | $36.6B | $15.5B | $45.4B | $59.0B | $27.1B | $20.6B | — | — |
| Enterprise Value | $102.5B | $119.3B | $89.8B | $35.2B | $14.7B | $44.4B | $58.5B | $26.6B | $20.0B | — | — |
| P/E Ratio → | 43.27 | 57.55 | 81.34 | — | — | — | — | — | — | — | — |
| P/S Ratio | 5.44 | 7.41 | 5.91 | 2.76 | 1.32 | 4.69 | 7.49 | 4.00 | 3.91 | — | — |
| P/B Ratio | 11.04 | 14.68 | 16.76 | 14.45 | 6.49 | 21.36 | 21.07 | 13.44 | 9.81 | — | — |
| P/FCF | 32.31 | 43.96 | 40.54 | 54.29 | 736.29 | 164.45 | 326.10 | 61.79 | 93.91 | — | — |
| P/OCF | 31.65 | 43.05 | 40.24 | 53.81 | 336.13 | 125.73 | 227.90 | 47.23 | 59.79 | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
Spotify Technology S.A.'s enterprise value stands at 39.3x EBITDA, 63% below its 5-year average of 105.2x. The Communication Services sector median is 7.5x, placing the stock at a 426% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 7.23 | 5.73 | 2.65 | 1.25 | 4.59 | 7.42 | 3.94 | 3.80 | — | — |
| EV / EBITDA | 39.35 | 54.01 | 60.45 | — | — | 201.01 | — | 1901.76 | — | — | — |
| EV / EBIT | 41.17 | 49.89 | 65.23 | — | — | 153.71 | — | — | — | — | — |
| EV / FCF | — | 42.91 | 39.33 | 52.18 | 698.51 | 160.95 | 322.94 | 60.79 | 91.25 | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Spotify Technology S.A. earns an operating margin of 12.8%. Operating margins have expanded from -3.4% to 12.8% over the past 3 years, signaling improving operational efficiency. Return on equity of 30.7% is exceptionally high. ROIC of 38.9% represents excellent returns on invested capital.
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 32.0% | 32.0% | 30.1% | 25.6% | 25.0% | 26.8% | 25.6% | 25.5% | 25.7% | 20.8% | 13.6% |
| Operating Margin | 12.8% | 12.8% | 8.7% | -3.4% | -5.6% | 1.0% | -3.7% | -1.1% | -0.8% | -9.2% | -11.8% |
| Net Profit Margin | 12.9% | 12.9% | 7.3% | -4.0% | -3.7% | -0.4% | -7.4% | -2.7% | -1.5% | -30.2% | -18.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 30.7% | 30.7% | 28.2% | -21.7% | -19.1% | -1.4% | -24.1% | -9.1% | -6.7% | -83614.1% | — |
| ROA | 15.7% | 15.7% | 11.2% | -6.7% | -5.8% | -0.5% | -10.2% | -4.0% | -2.1% | -46.6% | -34.1% |
| ROIC | 38.9% | 38.9% | 53.1% | -24.8% | -36.0% | 4.2% | -11.6% | -3.5% | -2.9% | -67.3% | -222.6% |
| ROCE | 25.6% | 25.6% | 23.1% | -10.7% | -16.4% | 2.5% | -9.6% | -3.0% | -2.5% | -34.9% | -61.4% |
Solvency and debt-coverage ratios — lower is generally safer
Spotify Technology S.A. carries a Debt/EBITDA ratio of 1.1x, which is manageable (70% below the sector average of 3.5x). The company holds a net cash position — cash of $5.3B exceeds total debt of $2.3B, providing substantial financial flexibility for buybacks, acquisitions, or weathering downturns. Interest coverage of 8.3x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.28 | 0.28 | 0.36 | 0.67 | 0.70 | 0.84 | 0.21 | 0.31 | — | 3.97 | — |
| Debt / EBITDA | 1.05 | 1.05 | 1.35 | — | — | 8.08 | — | 43.92 | — | — | — |
| Net Debt / Equity | — | -0.35 | -0.50 | -0.56 | -0.33 | -0.45 | -0.20 | -0.22 | -0.28 | 1.97 | — |
| Net Debt / EBITDA | -1.33 | -1.33 | -1.87 | — | — | -4.37 | — | -31.28 | — | — | — |
| Debt / FCF | — | -1.05 | -1.22 | -2.11 | -37.78 | -3.50 | -3.17 | -1.00 | -2.67 | 3.61 | 4.85 |
| Interest Coverage | 8.26 | 8.26 | 37.92 | -11.74 | -16.07 | 2.35 | -5.43 | -1.70 | -7.17 | -94.50 | -69.80 |
Net cash position: cash ($5.3B) exceeds total debt ($2.3B)
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.72x means Spotify Technology S.A. can comfortably meet its short-term obligations, though there is limited excess liquidity. The current ratio has improved from 1.29x to 1.72x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.72 | 1.72 | 1.88 | 1.29 | 1.24 | 1.36 | 0.82 | 0.91 | 1.05 | 1.02 | 1.56 |
| Quick Ratio | 1.72 | 1.72 | 1.88 | 1.29 | 1.24 | 1.36 | 0.82 | 0.91 | 1.05 | 1.02 | 1.56 |
| Cash Ratio | 1.56 | 1.56 | 1.67 | 1.03 | 0.95 | 1.08 | 0.60 | 0.72 | 0.84 | 0.81 | 1.30 |
| Asset Turnover | — | 1.10 | 1.31 | 1.58 | 1.55 | 1.34 | 1.25 | 1.34 | 1.21 | 1.28 | 1.40 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 20.29 | 18.61 | 24.28 | 21.45 | 23.70 | 21.65 | 21.66 | 27.92 | 32.96 | 38.03 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Spotify Technology S.A. returns 0.5% to shareholders annually primarily through share buybacks. The earnings yield of 2.3% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.3% | 1.7% | 1.2% | — | — | — | — | — | — | — | — |
| FCF Yield | 3.1% | 2.3% | 2.5% | 1.8% | 0.1% | 0.6% | 0.3% | 1.6% | 1.1% | — | — |
| Buyback Yield | 0.5% | 0.3% | 0.1% | 0.2% | 0.0% | 0.3% | 0.1% | 1.6% | 0.4% | — | — |
| Total Shareholder Yield | 0.5% | 0.3% | 0.1% | 0.2% | 0.0% | 0.3% | 0.1% | 1.6% | 0.4% | — | — |
| Shares Outstanding | — | $211M | $207M | $195M | $196M | $194M | $188M | $181M | $181M | $178M | $168M |
Compare SPOT with 9 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
| SPOTYou | $106B | 43.3 | 39.3 | 32.3 | 32.0% | 12.8% | 30.7% | 38.9% | 1.1 |
| TME | $10B | 23.6 | 6.6 | 7.7 | 42.3% | 30.7% | 10.5% | 11.6% | 0.6 |
| KRKR | $3B | -0.3 | — | — | 48.6% | -33.7% | -71.9% | -30.9% | — |
| FENG | $552M | -2.7 | — | — | 38.2% | -9.2% | -4.7% | -7.7% | — |
| NAMI | $508M | 4.1 | 60.0 | — | 28.8% | 6.7% | 94.8% | — | 0.1 |
| AREN | $137M | -1.0 | 14.6 | — | 44.3% | 6.2% | — | 22.6% | 7.0 |
| PODC | $50M | -10.0 | — | — | 9.1% | -12.3% | -41.0% | -33.3% | — |
| ZDGE | $42M | -19.4 | 63.1 | 12.5 | 89.8% | -2.6% | -8.4% | -6.3% | 0.5 |
| ONFO | $3M | -1.2 | — | — | 57.8% | -31.9% | -40.7% | -38.2% | — |
| BZFD | $1M | -0.8 | — | — | 44.7% | -12.4% | -9.3% | -8.3% | — |
| Communication Services Median | — | 15.1 | 7.5 | 10.5 | 51.2% | -0.7% | 2.4% | 1.7% | 3.5 |
Peers based on L4 peer group classification. Compare multiple stocks →
Includes 30+ ratios · 11 years · Updated daily
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Start ComparisonSpotify Technology S.A.'s current P/E ratio is 43.3x. The historical average is 69.4x.
Spotify Technology S.A.'s current EV/EBITDA is 39.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 57.2x.
Spotify Technology S.A.'s return on equity (ROE) is 30.7%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is -13.8%.
Based on historical data, Spotify Technology S.A. is trading at a P/E of 43.3x. Compare with industry peers and growth rates for a complete picture.
Spotify Technology S.A. has 32.0% gross margin and 12.8% operating margin. Operating margin between 10-20% is typical for established companies.
Spotify Technology S.A.'s Debt/EBITDA ratio is 1.1x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.