The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Spotify Technology's share price is $289.02.
Spotify Technology's Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2024 was $75.61. Hence, Spotify Technology's PS Ratio for today is 3.82.
Warning Sign:
Spotify Technology SA stock PS Ratio (=3.72) is close to 2-year high of 4.1
The historical rank and industry rank for Spotify Technology's PS Ratio or its related term are showing as below:
SPOT'
s PS Ratio Range Over the Past 10 Years
Min: 1.16 Med: 3.81 Max: 7.5
Current: 3.71
During the past 9 years, Spotify Technology's highest PS Ratio was 7.50. The lowest was 1.16. And the median was 3.81.
SPOT's PS Ratio is ranked worse than 69.6% of 579
companies
in the Interactive Media industry
Industry Median: 1.95
vs SPOT: 3.71
During the past 12 months, the average Revenue per Share Growth Rate of Spotify Technology was 16.80% per year.
During the past 3 years, the average Revenue per Share Growth Rate was 13.20% per year.
During the past 5 years, the average Revenue per Share Growth Rate was 16.70% per year.
During the past 9 years, Spotify Technology's highest 3-Year average Revenue per Share Growth Rate was 37.90% per year. The lowest was 13.20% per year. And the median was 21.45% per year.
Back to Basics: PS Ratio
Spotify Technology PS Ratio Historical Data
The historical data trend for Spotify Technology's PS 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.
Competitive Comparison of Spotify Technology's PS Ratio
For the Internet Content & Information subindustry, Spotify Technology's PS Ratio, along with its competitors' market caps and PS 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's PS Ratio Distribution in the Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Spotify Technology's PS Ratio distribution charts can be found below:
* The bar in red indicates where Spotify Technology's PS Ratio falls into.
Spotify Technology PS Ratio Calculation
The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.
Spotify Technology's Share Price of today is $289.02. Spotify Technology's Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $75.61.
* 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.
It can also be calculated from the numbers for the whole company:
Spotify Technology (NYSE:SPOT) PS Ratio Explanation
The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.
When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.
The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.
Spotify Technology PS Ratio Related Terms
Thank you for viewing the detailed overview of Spotify Technology's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Spotify Technology (Spotify Technology) Business Description
Spotify, headquartered in Stockholm, Sweden, is one of the world's largest music streaming service providers, with 489 million total listeners. The firm monetizes its users through a paid subscription model, referred to as its premium service, and an ad-based model, referred to as its ad-supported service. Revenue from premium and ad-supported services represented 87% and 13% of Spotify's 2022 total revenue, respectively.
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