SPOT
Spotify Technology SA
Price:  
476.91 
USD
Volume:  
1,940,799.00
Luxembourg | Entertainment
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Spotify WACC - Weighted Average Cost of Capital

The WACC of Spotify Technology SA (SPOT) is 6.7%.

The Cost of Equity of Spotify Technology SA (SPOT) is 6.75%.
The Cost of Debt of Spotify Technology SA (SPOT) is 5.10%.

Range Selected
Cost of equity 5.40% - 8.10% 6.75%
Tax rate 17.30% - 27.60% 22.45%
Cost of debt 4.50% - 5.70% 5.10%
WACC 5.4% - 8.0% 6.7%
WACC

Spotify WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.34 0.57
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.40% 8.10%
Tax rate 17.30% 27.60%
Debt/Equity ratio 0.02 0.02
Cost of debt 4.50% 5.70%
After-tax WACC 5.4% 8.0%
Selected WACC 6.7%