Spotify Technology S.A. (SPOT) Financial Ratios
11 years of historical data (2015–2025) · Communication Services · Internet Content & Information
EV/EBITDA
↓
35.33
↓-66% vs avg
5yr avg: 104.44
30Y Low51.9·High60.4
P/FCF
↓
29.32
↓-86% vs avg
5yr avg: 207.63
30Y Low40.5·High164.5
P/B Ratio
↓
10.34
↓-30% vs avg
5yr avg: 14.75
30Y Low6.5·High21.4
ROE
↑
31.9%
↓+784% vs avg
5yr avg: 3.6%
30Y Low-101%·High32%
Debt/EBITDA
↓
1.01
↓-71% vs avg
5yr avg: 3.48
30Y Low1.0·High43.9
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
SPOT Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Spotify Technology S.A. trades at 38.9x earnings, 43% below its 5-year average of 68.3x, sitting at the 0th percentile of its historical range. Compared to the Communication Services sector median P/E of 15.3x, the stock trades at a premium of 154%. On a free-cash-flow basis, the stock trades at 29.3x P/FCF, 86% below the 5-year average of 207.6x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $96.3B | $122.2B | $92.6B | $36.6B | $15.5B | $45.4B | $59.0B | $27.1B | $20.6B | — | — |
| Enterprise Value | $93.0B | $119.3B | $89.8B | $35.2B | $14.7B | $44.4B | $58.5B | $26.6B | $20.0B | — | — |
| P/E Ratio → | 38.92 | 55.25 | 81.34 | — | — | — | — | — | — | — | — |
| P/S Ratio | 4.90 | 7.11 | 5.91 | 2.76 | 1.32 | 4.69 | 7.49 | 4.00 | 3.91 | — | — |
| P/B Ratio | 10.34 | 14.68 | 16.76 | 14.45 | 6.49 | 21.36 | 21.07 | 13.44 | 9.81 | — | — |
| P/FCF | 29.32 | 42.56 | 40.54 | 54.29 | 736.29 | 164.45 | 326.10 | 61.79 | 93.91 | — | — |
| P/OCF | 28.71 | 41.68 | 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
SPOT EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Spotify Technology S.A.'s enterprise value stands at 35.3x EBITDA, 66% below its 5-year average of 104.4x. The Communication Services sector median is 9.6x, placing the stock at a 267% 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 | — | 6.94 | 5.73 | 2.65 | 1.25 | 4.59 | 7.42 | 3.94 | 3.80 | — | — |
| EV / EBITDA | 35.33 | 51.87 | 60.45 | — | — | 201.01 | — | 1901.76 | — | — | — |
| EV / EBIT | 36.97 | 52.91 | 65.23 | — | — | 153.71 | — | — | — | — | — |
| EV / FCF | — | 41.54 | 39.33 | 52.18 | 698.51 | 160.95 | 322.94 | 60.79 | 91.25 | — | — |
SPOT Profitability
Margins and return-on-capital ratios measuring operating efficiency
Spotify Technology S.A. earns an operating margin of 12.8%, above the Communication Services sector average of 1.6%. Operating margins have expanded from -3.4% to 12.8% over the past 3 years, signaling improving operational efficiency. Return on equity of 31.9% is exceptionally high. ROIC of 40.5% represents excellent returns on invested capital.
Margins
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% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 31.9% | 31.9% | 28.2% | -21.7% | -19.1% | -1.4% | -24.1% | -9.1% | -6.7% | -83614.1% | — |
| ROA | 16.4% | 16.4% | 11.2% | -6.7% | -5.8% | -0.5% | -10.2% | -4.0% | -2.1% | -46.6% | -34.1% |
| ROIC | 40.5% | 40.5% | 53.1% | -24.8% | -36.0% | 4.2% | -11.6% | -3.5% | -2.9% | -67.3% | -222.6% |
| ROCE | 26.7% | 26.7% | 23.1% | -10.7% | -16.4% | 2.5% | -9.6% | -3.0% | -2.5% | -34.9% | -61.4% |
SPOT Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Spotify Technology S.A. carries a Debt/EBITDA ratio of 1.0x, which is manageable (72% below the sector average of 3.6x). 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 72.7x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| 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 | 1.01 | 1.01 | 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 | -1.28 | -1.28 | -1.87 | — | — | -4.37 | — | -31.28 | — | — | — |
| Debt / FCF | — | -1.02 | -1.22 | -2.11 | -37.78 | -3.50 | -3.17 | -1.00 | -2.67 | 3.61 | 4.85 |
| Interest Coverage | 72.74 | 72.74 | 38.25 | -12.29 | -8.02 | 7.22 | -13.04 | -2.08 | -27.83 | -2.42 | -106.00 |
Net cash position: cash ($5.3B) exceeds total debt ($2.3B)
SPOT Liquidity & Efficiency
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 | — | 1.15 | 1.31 | 1.58 | 1.55 | 1.34 | 1.25 | 1.34 | 1.21 | 1.28 | 1.40 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 19.49 | 18.61 | 24.28 | 21.45 | 23.70 | 21.65 | 21.66 | 27.92 | 32.96 | 38.03 |
SPOT Shareholder Yields
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 2.6% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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 | — | — | — | — | — | — | — | — | — | — | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.6% | 1.8% | 1.2% | — | — | — | — | — | — | — | — |
| FCF Yield | 3.4% | 2.3% | 2.5% | 1.8% | 0.1% | 0.6% | 0.3% | 1.6% | 1.1% | — | — |
| Buyback Yield | 0.5% | 0.4% | 0.1% | 0.2% | 0.0% | 0.3% | 0.1% | 1.6% | 0.4% | — | — |
| Total Shareholder Yield | 0.5% | 0.4% | 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 |
Peer Comparison
Compare SPOT with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 SPOTYou | $96B | 38.9 | 35.3 | 29.3 | 32.0% | 12.8% | 31.9% | 40.5% | 1.0 |
 SIRI | $9B | 12.5 | 9.2 | 7.6 | 47.0% | 17.2% | 7.1% | 5.2% | 4.7 |
 IHRT | $467M | -1.2 | 10.8 | 42.8 | 58.3% | 5.0% | — | 3.7% | 10.5 |
 PTON | $2B | -19.2 | 61.7 | 7.3 | 50.9% | -1.5% | — | -3.9% | 36.9 |
 AAPL | $4.4T | 39.9 | 30.8 | 44.3 | 46.9% | 32.0% | 171.4% | 67.4% | 0.8 |
 AMZN | $2.6T | 34.1 | 18.5 | 341.6 | 50.3% | 11.2% | 22.3% | 14.7% | 1.0 |
 GOOGL | $4.5T | 34.0 | 29.8 | 60.8 | 59.7% | 32.1% | 35.7% | 25.1% | 0.4 |
 NFLX | $328B | 30.6 | 11.1 | 34.7 | 48.5% | 29.5% | 42.8% | 29.8% | 0.5 |
 WMG | $15B | 40.2 | 16.2 | 27.3 | 45.8% | 10.3% | 51.0% | 11.4% | 4.0 |
 LYV | $40B | -713.5 | 20.4 | 119.3 | 23.0% | 5.9% | 26.4% | 19.7% | 5.6 |
 SONO | $2B | -28.8 | 140.0 | 16.4 | 43.7% | -3.5% | -15.6% | -13.4% | 5.0 |
| Communication Services Median | — | 15.3 | 9.6 | 11.4 | 48.5% | 1.6% | 2.0% | 2.6% | 3.6 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 11 years · Updated daily
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SPOT — Frequently Asked Questions
Quick answers to the most common questions about buying SPOT stock.
What is Spotify Technology S.A.'s P/E ratio?
Spotify Technology S.A.'s current P/E ratio is 38.9x. The historical average is 68.3x.
What is Spotify Technology S.A.'s EV/EBITDA?
Spotify Technology S.A.'s current EV/EBITDA is 35.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 56.2x.
What is Spotify Technology S.A.'s ROE?
Spotify Technology S.A.'s return on equity (ROE) is 31.9%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is -13.6%.
Is SPOT stock overvalued?
Based on historical data, Spotify Technology S.A. is trading at a P/E of 38.9x. Compare with industry peers and growth rates for a complete picture.
What are Spotify Technology S.A.'s profit margins?
Spotify Technology S.A. has 32.0% gross margin and 12.8% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does Spotify Technology S.A. have?
Spotify Technology S.A.'s Debt/EBITDA ratio is 1.0x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.