Spotify Fair Value
SP
The fair market value of SPOT stock is -228.77 USD. Relative to the market price of 360.22 USD Spotify Technology SA is overvalued by 163.8%
Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.
Fair Relative Value
Spotify Valuation
Current SPOT share ticker price is 360.22 USD.
The fair value level of -228.77 USD can be considered as an effective entry point for long-term investors to start investing in SPOT stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.
Price chart is not available
Current market price
Current price is 164% higher its fair value
Current price is 465% higher its minimum value
Current price is 96% higher its maximum value
Market price:
SPOT stock is greatly overvalued
It means the current price may concern as a High Risk Entry Point
Spotify Technology SA Stock Valuation Calculator
How do we value a stock?
As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.
1
Maximum P/E over 5 years
6.37
2
Median P/E over 5 years
-96.96
3
Minimum P/E over 5 years
-557.2
4
Earning per share (last 12 months)
2.12 EUR
Maximum value
1
x
4
=
15.02 USD
Fair value
2
x
4
=
-228.77 USD
Minimum value
3
x
4
=
-1 314.75 USD
Spotify Technology SA price metrics
21.4
Annual return (geometric mean)
49.9
Risk (standard deviation) of returns
β
1.6
Beta (volatility compared to market)