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 15th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Spotify Technology SA, consider:
The company's balance sheet shows it gets 99% of its capital from equity, and 1% of its capital from debt. Its equity weight surpasses that of 88.36% of free cash flow generating stocks in the Technology sector.
The business' balance sheet suggests that 1% of the company's capital is sourced from debt; this is greater than merely 6.97% of the free cash flow producing stocks we're observing.
Spotify Technology SA's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.41. This coverage rate is greater than that of merely 23.69% of stocks we're observing for the purpose of forecasting via discounted cash flows.
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 EPAY, IMXI, ANSS, CNXN, and ZIXI.
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NEW YORK--(BUSINESS WIRE)--Spotify Technology S.A. (NYSE: SPOT) will post its third quarter 2020 financial results and letter to shareholders on Thursday, October 29, 2020, before market open. The company will hold a question and answer session to discuss third quarter 2020 financial results at 8:00am Eastern Time. Management will answer questions submitted via Slido. Questions may be submitted the day of the call at www.slido.com using the event code #SpotifyEarningsQ320. A live webcast of the
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