SPOT
Spotify Technology SA
Price:  
725.05 
USD
Volume:  
1,078,903
Luxembourg | Entertainment

Spotify DCF Valuation - Growth Exit 5Y

-1.9 %
Upside

What is the DCF valuation of Spotify?

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%.

Is Spotify a buy or a sell?

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 Rate5.7% - 8.6%7.2%
Long-term Growth Rate 3.0% - 5.0%4.0%
Fair Price416.24 - 3,027.68711.20
Upside-42.6% - 317.6%-1.9%
725.05 USD
Stock Price
711.20 USD
Fair Price
REVENUE & EXPENSES
CAPEX
D&A
WORKING CAPITAL
TERMINAL VALUE

Spotify DCF Valuation: Revenue & Expenses Forecast

(EUR in millions)Projections
12-202412-202512-202612-202712-202812-2029
Revenue15,67317,85019,91622,68224,83327,459
% Growth
18%14%12%14%9%11%
Cost of goods sold(10,932)(11,828)(12,537)(13,565)(14,108)(14,820)
% of Revenue70%66%63%60%57%54%
Selling, G&A expenses(1,856)(2,114)(2,359)(2,686)(2,941)(3,252)
% of Revenue12%12%12%12%12%12%
Research & Development(1,447)(1,648)(1,839)(2,094)(2,293)(2,535)
% of Revenue9%9%9%9%9%9%
Net interest & other expenses(97)(110)(123)(140)(154)(170)
% of Revenue1%1%1%1%1%1%
Tax expense(203)(349)(496)(681)(866)(1,084)
Tax rate15%16%16%16%16%16%
Net profit1,1381,8012,5633,5174,4725,599
% Margin7%10%13%16%18%20%