Spotify Technology (XSWX:SPOT) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Spotify Technology Forward PE Ratio Related Terms
Spotify Technology Forward PE Ratio Historical Data
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The historical data trend for Spotify Technology's Forward PE Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Spotify Technology Forward PE Ratio Chart
Spotify Technology Annual Data
Trend
2021-12
2025-12
Forward PE Ratio
344.83
37.09
Spotify Technology Quarterly Data
2021-09
2021-12
2022-03
2025-12
2026-03
Forward PE Ratio
2,000.00
344.83
227.27
37.09
32.77
XSWX:SPOT vs NBIS, BIDU, RDDT: Forward PE Ratio Comparison
For the Internet Content & Information subindustry, Spotify Technology's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Spotify Technology Forward PE Ratio vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Spotify Technology's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Spotify Technology's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Spotify Technology (XSWX:SPOT) has a Forward PE Ratio of 33.24 as of Jul. 06, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Spotify Technology and its competitors. According to the industry distribution chart, Spotify Technology ranks #202 out of 242 companies in the Interactive Media industry, placing it in the top 83.5%.
Is Spotify Technology's Forward PE Ratio too high?
Spotify Technology's current Forward PE Ratio is 33.24. The Interactive Media industry median Forward PE Ratio is 13.73. Spotify Technology's value of 33.24 is 142.1% above this industry median. Based on the distribution chart, Spotify Technology ranks #202 out of 242 companies in the Interactive Media industry, which is in the bottom quartile relative to peers. Overall, Spotify Technology has a GF Score™ of 77/100, reflecting its overall financial health beyond just this single metric.
How does Spotify Technology's Forward PE Ratio compare to NBIS and BIDU?
According to the Interactive Media industry distribution chart, Spotify Technology ranks #202 out of 242 companies for Forward PE Ratio. This places Spotify Technology in the lower half of its industry. The industry median Forward PE Ratio is 13.73. Spotify Technology's value of 33.24 is 142.1% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for an Interactive Media company?
The median Forward PE Ratio among Interactive Media companies is 13.73, based on 242 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Spotify Technology's current Forward PE Ratio of 33.24 is 142.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Spotify Technology and its competitors. For the Interactive Media industry, the median Forward PE Ratio is 13.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Spotify Technology's current Forward PE Ratio is 33.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Spotify Technology stock overvalued right now?
Spotify Technology (XSWX:SPOT) has a current Forward PE Ratio of 33.24. The stock's GF Value™ is CHF388.20, compared to a current price of CHF386.00 — trading 0.6% below its estimated fair value. The current Forward PE Ratio is 33.24 and 142.1% above the Interactive Media industry median of 13.73. Spotify Technology's overall GF Score™ is 77/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Spotify Technology (XSWX:SPOT), the current Forward PE Ratio is 33.24 as of Jul. 06, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Spotify Technology (XSWX:SPOT) Overvalued in 2026?
Based on GuruFocus' analysis, Spotify Technology stock appears to be undervalued.
The current stock price of CHF386.00 is trading 0.6% below its estimated GF Value™ of CHF388.20.
Key valuation signals for XSWX:SPOT:
Forward PE Ratio: 33.24
GF Value™: CHF388.20 vs. price of CHF386.00 (0.6% below fair value)
Industry Position: 142.1% above the Interactive Media median (#202 of 242)
No single metric tells the full story. See the XSWX:SPOT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Spotify is the leading global music streaming service, with over 750 million monthly active users and nearly 300 million paying subscribers, with the latter constituting the firm's premium segment. Most of the firm's revenue and nearly all its gross profit come from subscribers, who pay a monthly fee to access a music library that includes most of the most popular songs ever recorded, including all from the major record labels. The firm also offers access to audiobooks and integrates podcasts within its standard music app. Podcast content is not exclusive and is typically free to access on other platforms. Ad-supported users can access a similar music catalog, but cannot customize a similar on-demand experience.
77GF Score
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