The Discounted Cash Flow (DCF) valuation of Spotify Technology SA (SPOT) is 711.20 USD. With the latest stock price at 725.05 USD, the upside of Spotify Technology SA based on DCF is -1.9%.
Based on the latest price of 725.05 USD and our DCF valuation, Spotify Technology SA (SPOT) is a sell. Selling Spotify stocks now will result in a potential gain of 1.9%.
Range | Selected | |
WACC / Discount Rate | 5.7% - 8.6% | 7.2% |
Long-term Growth Rate | 3.0% - 5.0% | 4.0% |
Fair Price | 416.24 - 3,027.68 | 711.20 |
Upside | -42.6% - 317.6% | -1.9% |
(EUR in millions) | Projections | |||||
12-2024 | 12-2025 | 12-2026 | 12-2027 | 12-2028 | 12-2029 | |
Revenue | 15,673 | 17,850 | 19,916 | 22,682 | 24,833 | 27,459 |
% Growth | 18% | 14% | 12% | 14% | 9% | 11% |
Cost of goods sold | (10,932) | (11,828) | (12,537) | (13,565) | (14,108) | (14,820) |
% of Revenue | 70% | 66% | 63% | 60% | 57% | 54% |
Selling, G&A expenses | (1,856) | (2,114) | (2,359) | (2,686) | (2,941) | (3,252) |
% of Revenue | 12% | 12% | 12% | 12% | 12% | 12% |
Research & Development | (1,447) | (1,648) | (1,839) | (2,094) | (2,293) | (2,535) |
% of Revenue | 9% | 9% | 9% | 9% | 9% | 9% |
Net interest & other expenses | (97) | (110) | (123) | (140) | (154) | (170) |
% of Revenue | 1% | 1% | 1% | 1% | 1% | 1% |
Tax expense | (203) | (349) | (496) | (681) | (866) | (1,084) |
Tax rate | 15% | 16% | 16% | 16% | 16% | 16% |
Net profit | 1,138 | 1,801 | 2,563 | 3,517 | 4,472 | 5,599 |
% Margin | 7% | 10% | 13% | 16% | 18% | 20% |