Latest Ratios: P/E Ratio 41.1x · EV/EBITDA 37.4x · ROE 31.9%. (2015–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $101.7B | $122.2B | $92.6B | $36.6B | $15.5B | $45.4B | $59.0B | $27.1B | $20.6B | — | — |
| Enterprise Value | $98.3B | $119.3B | $89.8B | $35.2B | $14.7B | $44.4B | $58.5B | $26.6B | $20.0B | — | — |
| P/E Ratio → | 41.13 | 55.25 | 81.34 | — | — | — | — | — | — | — | — |
| P/S Ratio | 5.18 | 7.11 | 5.91 | 2.76 | 1.32 | 4.69 | 7.49 | 4.00 | 3.91 | — | — |
| P/B Ratio | 10.93 | 14.68 | 16.76 | 14.45 | 6.49 | 21.36 | 21.07 | 13.44 | 9.81 | — | — |
| P/FCF | 30.98 | 42.56 | 40.54 | 54.29 | 736.29 | 164.45 | 326.10 | 61.79 | 93.91 | — | — |
| P/OCF | 30.33 | 41.68 | 40.24 | 53.81 | 336.13 | 125.73 | 227.90 | 47.23 | 59.79 | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 6.94 | 5.73 | 2.65 | 1.25 | 4.59 | 7.42 | 3.94 | 3.80 | — | — |
| EV / EBITDA | 37.41 | 51.87 | 60.45 | — | — | 201.01 | — | 1901.76 | — | — | — |
| EV / EBIT | 39.14 | 52.91 | 65.23 | — | — | 153.71 | — | — | — | — | — |
| EV / FCF | — | 41.54 | 39.33 | 52.18 | 698.51 | 160.95 | 322.94 | 60.79 | 91.25 | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 32.0% | 32.0% | 30.1% | 25.6% | 25.0% | 26.8% | 25.6% | 25.5% | 25.7% | 20.8% | 13.6% |
| Operating Margin | 12.8% | 12.8% | 8.7% | -3.4% | -5.6% | 1.0% | -3.7% | -1.1% | -0.8% | -9.2% | -11.8% |
| Net Profit Margin | 12.9% | 12.9% | 7.3% | -4.0% | -3.7% | -0.4% | -7.4% | -2.7% | -1.5% | -30.2% | -18.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 31.9% | 31.9% | 28.2% | -21.7% | -19.1% | -1.4% | -24.1% | -9.1% | -6.7% | -83614.1% | — |
| ROA | 16.4% | 16.4% | 11.2% | -6.7% | -5.8% | -0.5% | -10.2% | -4.0% | -2.1% | -46.6% | -34.1% |
| ROIC | 40.5% | 40.5% | 53.1% | -24.8% | -36.0% | 4.2% | -11.6% | -3.5% | -2.9% | -67.3% | -222.6% |
| ROCE | 26.7% | 26.7% | 23.1% | -10.7% | -16.4% | 2.5% | -9.6% | -3.0% | -2.5% | -34.9% | -61.4% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.28 | 0.28 | 0.36 | 0.67 | 0.70 | 0.84 | 0.21 | 0.31 | — | 3.97 | — |
| Debt / EBITDA | 1.01 | 1.01 | 1.35 | — | — | 8.08 | — | 43.92 | — | — | — |
| Net Debt / Equity | — | -0.35 | -0.50 | -0.56 | -0.33 | -0.45 | -0.20 | -0.22 | -0.28 | 1.97 | — |
| Net Debt / EBITDA | -1.28 | -1.28 | -1.87 | — | — | -4.37 | — | -31.28 | — | — | — |
| Debt / FCF | — | -1.02 | -1.22 | -2.11 | -37.78 | -3.50 | -3.17 | -1.00 | -2.67 | 3.61 | 4.85 |
| Interest Coverage | 72.74 | 72.74 | 38.25 | -12.29 | -8.02 | 7.22 | -13.04 | -2.08 | -27.83 | -2.42 | -106.00 |
Net cash position: cash ($5.3B) exceeds total debt ($2.3B)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.72 | 1.72 | 1.88 | 1.29 | 1.24 | 1.36 | 0.82 | 0.91 | 1.05 | 1.02 | 1.56 |
| Quick Ratio | 1.72 | 1.72 | 1.88 | 1.29 | 1.24 | 1.36 | 0.82 | 0.91 | 1.05 | 1.02 | 1.56 |
| Cash Ratio | 1.56 | 1.56 | 1.67 | 1.03 | 0.95 | 1.08 | 0.60 | 0.72 | 0.84 | 0.81 | 1.30 |
| Asset Turnover | — | 1.15 | 1.31 | 1.58 | 1.55 | 1.34 | 1.25 | 1.34 | 1.21 | 1.28 | 1.40 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 19.49 | 18.61 | 24.28 | 21.45 | 23.70 | 21.65 | 21.66 | 27.92 | 32.96 | 38.03 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.4% | 1.8% | 1.2% | — | — | — | — | — | — | — | — |
| FCF Yield | 3.2% | 2.3% | 2.5% | 1.8% | 0.1% | 0.6% | 0.3% | 1.6% | 1.1% | — | — |
| Buyback Yield | 0.5% | 0.4% | 0.1% | 0.2% | 0.0% | 0.3% | 0.1% | 1.6% | 0.4% | — | — |
| Total Shareholder Yield | 0.5% | 0.4% | 0.1% | 0.2% | 0.0% | 0.3% | 0.1% | 1.6% | 0.4% | — | — |
| Shares Outstanding | — | $211M | $207M | $195M | $196M | $194M | $188M | $181M | $181M | $178M | $168M |
Royalty cost structure rigidity
According to current market data, Spotify trades at a P/E of 38.42, suggesting that investors are increasingly pricing the company as a scalable platform rather than a low-margin distributor, despite the inherent risks associated with its reliance on third-party content providers and variable royalty cost structures.
The current valuation multiples appear to imply an expectation of sustained margin expansion through the Marketplace initiative and non-music content scaling. Investors should monitor whether the forward P/E of 36.31 remains justified if top-line growth continues to decelerate toward single digits in mature markets.
Based on reported financial statements, Spotify's ROIC has trended upward from negative levels in 2023Q4 to 12.6% in 2026Q1, indicating that management's recent pivot toward operational efficiency is successfully generating higher returns on the capital deployed into platform development and content acquisition strategies.
The improvement in ROIC suggests that the company is moving past its peak investment phase, where capital was heavily consumed by exclusive podcasting deals. This trend warrants further investigation to determine if the current return profile is sustainable as the company expands into lower-ARPU emerging markets.
As reported in quarterly filings, Spotify maintains a consistent DSO of approximately 17 to 21 days, which, when compared to its DPO of 29 days, reveals a favorable working capital cycle that effectively provides the company with interest-free financing from its supplier base.
This structural advantage in the cash conversion cycle allows the company to fund operations with minimal reliance on external debt. The stability of these metrics suggests that Spotify holds significant leverage over its smaller content partners, though this may not apply to the major record labels.
Institutional analysts frequently misapply the gross margin metric to Spotify, as the 32.9% figure obscures the impact of the Marketplace take-rate, which effectively reclassifies a portion of royalty costs as marketing revenue rather than a direct cost of sales, thereby distorting the true underlying profitability.
Investors should instead focus on the contribution margin per user, which accounts for the variable nature of royalty payouts while isolating the impact of promotional tools. Relying solely on headline gross margin may lead to an underestimation of the company's ability to expand profitability through B2B service offerings.
Includes 30+ ratios · 11 years · Updated daily
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Quick answers to the most common questions about buying SPOT stock.
Spotify Technology S.A.'s current P/E ratio is 41.1x. The historical average is 68.3x.
Spotify Technology S.A.'s current EV/EBITDA is 37.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 56.2x.
Spotify Technology S.A.'s return on equity (ROE) is 31.9%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is -13.6%.
Based on historical data, Spotify Technology S.A. is trading at a P/E of 41.1x. Compare with industry peers and growth rates for a complete picture.
Spotify Technology S.A. has 32.0% gross margin and 12.8% operating margin. Operating margin between 10-20% is typical for established companies.
Spotify Technology S.A.'s Debt/EBITDA ratio is 1.0x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.