Spotify Technology S.A.

SPOT

457.79 (2.33%) 10.65

92.51(B)

Communication Services

Entertainment

Spotify Technology S.A. together with its subsidiaries provides audio streaming subscription services worldwide. It operates through two segments Premium and Ad-Supported. The Premium segment offers unlimited online and offline streaming access to its catalog of music and podcasts without commercial breaks to its subscribers. This segment sells directly to the end users. The Ad-Supported segment provides on-demand online access to its catalog of music and unlimited online access to the catalog of podcasts to its users on their computers tablets and compatible mobile devices. The company also offers sales distribution and marketing contract research and development and customer and other support services. Spotify Technology S.A. was incorporated in 2006 and is based in Luxembourg City Luxembourg.

Holdings:

Cost basis:

Spotify Technology S.A. (SPOT) price target and intrinsic value estimate

SPOT's fair price estimate is $145.8

This valuation is based on a fair P/E of 15.0 and EPS estimates of $9.70

The median analyst price target for SPOT is $491.3.

Analyst price targets range from $233.6 to $607.8

Is SPOT overvalued or undervalued?

SPOT is currently trading at $457.79

SPOT is overvalued by 214% using the pevaluation method.

SPOT is undervalued by 7% compared to median analyst price targets.

Do you agree with this valuation?

Valuation

PEvaluation

Low $109.3

Median $145.8

High $182.2

Fair P/E

Margin of safety

Analyst valuation

Low $233.6

Median $491.3

High $607.8

Strong Buy8

Buy18

Hold9

Sell1

Strong Sell1

Discounted cash-flow

TTM FCFFCF est.Growth FCFTerminal FCF

Discount rate:

10%

Terminal rate:

Growth phase length:

Growth phase rate:

10%

Economic moat: None/narrow

Overview

Market data

Market cap:$92.51(B)

Enterprise value:$85.47(B)

Total Equity:$5.16(B)

Shares outstanding:202.08(M)

Div. yield:0.00%

P/S:5.42

P/E:116.78

P/FCF:46.10

P/B:17.93

EPS:$3.9

FCF per share:$9.9

Dividend per share:$0.0

Income (TTM)

Revenue$16.82(B)

Gross profit$4.83(B)

EBITDA$1.28(B)

Net income$780.54(M)

Gross margin28.7%

Net margin4.6%

Balance sheet

Total assets$11.75(B)

Total liabilities$6.59(B)

Cash & Short-term inv.$6.22(B)

Long-term debt$1.49(B)

Debt issued$0

Debt repaid$-75.72(M)

Cash flow (TTM)

FCF$2.01(B)

CapEx$-13.36(M)

Dividends paid$0

Stock issued$955.35(M)

Stock repurchased$-123.59(M)

Stock-based comp.$275.03(M)

Future Growth

Revenue

CAGR: 13.4%

FY+1$16.20(B)

FY+2$18.60(B)

FY+3$21.15(B)

FY+4$24.22(B)

FY+5$26.83(B)

Net Income

CAGR: 25.1%

FY+1$1.25(B)

FY+2$1.93(B)

FY+3$2.44(B)

FY+4$2.70(B)

FY+5$3.06(B)

EPS

CAGR: 24.9%

FY+1$6.14

FY+2$9.66

FY+3$11.96

FY+4$13.74

FY+5$14.92

FCF per share

CAGR: 26.8%

FY+1$9.76

FY+2$12.99

FY+3$15.70

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Historical Financials

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YearlyQuarterly

Income

RevenueNet IncomeCOGSGross ProfitTotal OpEx.R&DSG&AOperating IncomeInterest ExpenseInterest IncomePre-tax incomeIncome tax

Cash flow

FCFCFONet IncomeD&AStock-based Comp.CFFStock IssuedStock RepurchasedDebt IssuedDebt RepaidDividend PaidCFIAcquisitionsDivestituresCapital Expenditures

Balance sheet

Total AssetsTotal LiabilitiesCurrent assetsCash and EquivalentsShort-term investmentsInventoriesReceivablesNon-current assetsNet PP&EGoodwillCurrent liabilitiesAccounts payableNon-current liabilitiesLong-Term DebtTotal Equity

Shares outstanding

Shares (Basic)Shares (Diluted)

Per share data

EPS (Basic)EPS (Diluted)FCF/ShareDividend/ShareBook value/Share

Ratios

P/EP/FCFP/BP/SEV/EarningsEV/FCFDebt/EquityPayout ratio

Margins

Net Income MarginOperating MarginGross MarginEBITDA MarginFCF Margin

Returns

ROICROAROCEROE

Market Cap.