Spotify Technology S.A. Ordinary Shares (SPOT)

FairStock Score: 59/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Spotify as a global audio utility: premium subscriptions and ad-supported listening, run by only 7,000 employees. The business quality is improving. In fiscal Q2 2026, revenue was $4.8B and net income was $545.0M, an 11.41% margin. The supplied growth rates, which lack a named period, are 8.19% for revenue and 220.44% for profit, so margins are doing the heavy lifting. Free cash flow is $3.3B trailing twelve months, but the 3.1% FCF yield at a $104.1B market cap is not generous. The balance sheet is conservative: debt-to-equity is 0.06 and Altman Z-Score is 12.67. FairStock calculations show Piotroski 8/9, ROE 44.48%, and ROCE 12.19%, so returns are strong, though content and royalties keep capital intensity in view. The moat is real but not unassailable: scale, data, playlists, podcasts, and a two-sided network help, yet labels, competitors, and regulators have power. Valuation is the rub. At the 2026-10-13 close of $527.45, FairStock calculations show P/E 28.92, P/B 11.07, EV/EBITDA 27.11, and a Graham Number of $129.38, leaving a -307.68% margin of safety. PEG 0.13 looks cheap only because profit growth has been extraordinary. FairStock Score is 72/100; its Lynch category is none because only zero years of filed annual results are available, so I won't force a label. I respect the improving economics, but I would demand a wider discount or clearer durable growth before calling the price attractive.

In plain English: Spotify is a worldwide audio streaming company that earns money from paid subscriptions and advertising. The business looks strong: it is producing more profit and lots of cash while carrying little debt. At $527.45, the shares look expensive compared with current profit and accounting value, so the price already assumes continued strong growth.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer