Spotify Technology S.A. Ordinary Shares (SPOT) Company Bio
Spotify AB provides a digital music-streaming service that gives on-demand access of songs on devices, computers, mobiles, tablets, and home entertainment systems. Its services allow subscribers to search and discover music collections of friends, artists, and celebrities; build a personal collection playlist; and share music on Spotify, Facebook, Twitter, blog, and via email with friends. It also offers research and development services in Sweden. The company was founded in 2008 and is based in Stockholm, Sweden. Spotify AB operates as a subsidiary of Spotify Limited.
SPOT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for SPOT, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Spotify Technology SA ranked in the 10th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 89%. As for the metrics that stood out in our discounted cash flow analysis of Spotify Technology SA, consider:
98% of the company's capital comes from equity, which is greater than 93.18% of stocks in our cash flow based forecasting set.
The business' balance sheet reveals debt to be 2% of the company's capital (with equity being the remaining amount). Approximately merely 6.78% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than 66.05% of stocks in its sector (Technology).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as SPOT, try KLIC, SIMO, SSNT, TTD, and EVOP.
Hot technology startups have traditionally raised the cash they needed to break into the big time through initial public offerings. IPOs became synonymous with instant wealth for company founders and those lucky enough to buy those shiny new shares. Then music-streaming service Spotify Technology SA went a different route, going public through a method called direct listing. Why a direct listing? While Spotify didn’t need new cash, its investors wanted to cash out. Workplace messaging platform S
A group of Apple's critics - including Spotify Technology, Match Group and "Fortnite" creator Epic Games - have joined a nonprofit group that plans to advocate for legal and regulatory action to challenge the iPhone maker's App Store practices.
It's not hard to conclude that the stock of Spotify Technology (NYSE: SPOT) is absolutely a buy. The company has already established itself as the global paid music-streaming leader, which suggests there is a lot of growth ahead of it, given music streaming adoption is still in its infancy.