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Spotify (SPOT) Stock Analysis

This is a peer-relative look at Spotify (SPOT): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Media & Entertainment peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Spotify (SPOT)
Profile ItemSPOT
NameSpotify Technology S.A.
Country/RegionSweden
GICS SectorCommunication Services
GICS Industry GroupMedia & Entertainment
GICS IndustryEntertainment
GICS Sub-IndustryMovies & Entertainment
Market Capitalization120.11 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateApril 3, 2018
Security TypeCommon Stock

Price Performance

Cumulative Growth

SPOT
GSPC
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Spotify (SPOT) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Spotify (SPOT) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Spotify (SPOT) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Spotify (SPOT) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: SPOTIndustry group median
Total Return (1Y)-13.30%2.21%
Total Return (3Y, Annualized)55.76%10.94%
Total Return (5Y, Annualized)18.22%-7.29%

Risk Profile

Drawdown History

SPOT
GSPC
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Spotify (SPOT) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Spotify (SPOT) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Spotify (SPOT) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: SPOTIndustry group median
Volatility (1Y, Annualized)46.46%43.95%
Beta (5Y)1.510.97
Max Drawdown (5Y)-76.39%-69.54%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. SPOT is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Spotify (SPOT) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: SPOTIndustry group median
Sharpe Ratio (1Y)-0.38-0.03
Sortino Ratio (1Y)-0.57-0.05

Profitability

ROE (TTM)

Spotify (SPOT) posts ROE of 35.81%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.

SPOT

Media & Entertainment industry group

35.81%

Group distribution
Max
45.82%
SPOT
35.81%
Q3
17.46%
Median
7.50%
Q1
-3.05%
Min
-26.31%
Largest peers
NFLX
53.46%
GOOGL
48.68%
GOOG
48.68%
SPOT
35.81%
META
32.26%
CMCSA
11.43%
DIS
8.01%
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Where Spotify (SPOT) stands on ROE within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Spotify (SPOT) keeps 15.73% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

SPOT

Media & Entertainment industry group

15.73%

Group distribution
Max
32.91%
SPOT
15.73%
Q3
11.58%
Median
5.49%
Q1
-3.17%
Min
-25.14%
Largest peers
GOOGL
54.77%
GOOG
54.77%
META
31.15%
NFLX
29.69%
SPOT
15.73%
CMCSA
9.20%
DIS
8.70%
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Where Spotify (SPOT) stands on net margin within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Spotify (SPOT) turns 13.52% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.

SPOT

Media & Entertainment industry group

13.52%

Group distribution
Max
40.16%
Q3
18.63%
SPOT
13.52%
Median
10.04%
Q1
0.29%
Min
-19.55%
Largest peers
META
35.41%
NFLX
34.63%
GOOGL
34.03%
GOOG
34.03%
DIS
19.30%
CMCSA
18.16%
SPOT
13.52%
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Where Spotify (SPOT) stands on operating margin within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Spotify (SPOT) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: SPOTIndustry group median
ROE (TTM)35.81%7.50%
ROA (TTM)11.82%3.10%
Net Margin (TTM)15.73%5.49%
Operating Margin (TTM)13.52%10.04%
Gross Margin (TTM)33.12%52.28%

Growth

Revenue Growth

Spotify (SPOT) grew revenue 9.65%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

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Spotify (SPOT): Revenue Growth across different time periods, set against Media & Entertainment industry-group medians.

EPS Growth

Spotify (SPOT) grew earnings per share 91.09%, in the upper peer quartile. Per-share profits are compounding faster than at most industry peers.

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Spotify (SPOT): EPS Growth across different time periods, set against Media & Entertainment industry-group medians.

Growth Metrics

Spotify (SPOT) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: SPOTIndustry group median
Revenue Growth (YoY)9.65%5.07%
Revenue Growth (3Y CAGR)13.59%5.29%
EPS Growth (YoY)91.09%5.94%
EPS Growth (3Y CAGR)--24.28%

Financial Strength

Current Ratio (MRQ)

Spotify (SPOT) has current ratio of 2.13, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.

SPOT

Media & Entertainment industry group

2.13

Group distribution
Max
4.50
Q3
2.42
SPOT
2.13
Median
1.53
Q1
0.90
Min
0.25
Largest peers
GOOGL
2.72
GOOG
2.72
SPOT
2.13
META
1.90
NFLX
1.08
CMCSA
0.82
DIS
0.71
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Where Spotify (SPOT) stands on current ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Spotify (SPOT) has debt-to-equity ratio of 0.05, in the lower-leverage quartile for its industry. Borrowing is modest relative to equity compared with most peers, which can leave more flexibility through a cycle.

SPOT

Media & Entertainment industry group

0.05

Group distribution
Max
3.84
Q3
1.71
Median
0.60
Q1
0.17
SPOT
0.05
Min
0.00
Largest peers
CMCSA
0.94
NFLX
0.60
META
0.42
DIS
0.39
GOOGL
0.19
GOOG
0.19
SPOT
0.05
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Where Spotify (SPOT) stands on debt-to-equity ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Spotify (SPOT) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: SPOTIndustry group median
Current Ratio (MRQ)2.131.53
Debt / Equity (MRQ)0.050.60
Net Debt / EBITDA-2.401.43

Dividends

Dividend Yield (TTM)

Spotify (SPOT) pays no dividend, leaving dividend yield at 0.00% this period. Shareholders may still receive value through reinvestment or buybacks, but there is no dividend income to compare here.

SPOT

Media & Entertainment industry group

0.00%

Group distribution
Max
1.70%
Q3
0.69%
SPOT
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
CMCSA
5.78%
DIS
1.33%
META
0.32%
GOOG
0.27%
GOOGL
0.26%
SPOT
0.00%
NFLX
0.00%
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Where Spotify (SPOT) stands on dividend yield within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Spotify (SPOT) paid no earnings out as dividends this period, leaving payout ratio at 0.00%. There is no dividend payout to size against earnings.

SPOT

Media & Entertainment industry group

0.00%

Group distribution
Max
60.80%
Q3
28.16%
SPOT
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
CMCSA
41.77%
DIS
30.93%
META
7.16%
GOOGL
4.26%
GOOG
4.26%
SPOT
0.00%
NFLX
0.00%
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Where Spotify (SPOT) stands on payout ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Spotify (SPOT) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: SPOTIndustry group median
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

P/E Ratio (TTM)

Spotify (SPOT) trades at P/E ratio of 35.60, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

SPOT

Media & Entertainment industry group

35.60

Group distribution
Max
73.62
Q3
36.70
SPOT
35.60
Median
19.19
Q1
10.72
Min
1.50
Largest peers
SPOT
35.60
DIS
23.20
META
21.92
NFLX
19.03
GOOGL
16.07
GOOG
15.92
CMCSA
7.18
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Where Spotify (SPOT) stands on P/E ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Spotify (SPOT) trades at 6.39 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.

SPOT

Media & Entertainment industry group

6.39

Group distribution
Max
8.78
SPOT
6.39
Q3
3.91
Median
1.61
Q1
0.65
Min
0.00
Largest peers
GOOGL
8.78
GOOG
8.70
META
6.78
SPOT
6.39
NFLX
5.51
DIS
1.97
CMCSA
0.66
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Where Spotify (SPOT) stands on P/S ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Spotify (SPOT) trades at 12.23 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.

SPOT

Media & Entertainment industry group

12.23

Group distribution
SPOT
12.23
Max
12.23
Q3
5.66
Median
1.94
Q1
0.76
Min
-1.97
Largest peers
SPOT
12.23
NFLX
9.23
GOOGL
6.29
GOOG
6.23
META
6.03
DIS
1.77
CMCSA
0.87
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Where Spotify (SPOT) stands on P/B ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Spotify (SPOT) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: SPOTIndustry group median
P/E Ratio (TTM)35.6019.19
P/S Ratio (TTM)6.391.61
P/B Ratio (MRQ)12.231.94
Free Cash Flow Yield (TTM)1.19%6.15%