Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Spotify Technology's annualized net income for the quarter that ended in Mar. 2026 was CHF2,625 Mil. Spotify Technology's average shareholder tangible equity for the quarter that ended in Mar. 2026 was CHF6,488 Mil. Therefore, Spotify Technology's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 40.46%.
The historical rank and industry rank for Spotify Technology's Return-on-Tangible-Equity or its related term are showing as below:
XSWX:SPOT'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -44.77 Med: -9.27 Max: 43.92
Current: 43.92
During the past 11 years, Spotify Technology's highest Return-on-Tangible-Equity was 43.92%. The lowest was -44.77%. And the median was -9.27%.
XSWX:SPOT's Return-on-Tangible-Equity is ranked better than 86.35% of 491
companies
in the Interactive Media industry
Industry Median: 5.8
vs XSWX:SPOT: 43.92
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Spotify Technology Return-on-Tangible-Equity Related Terms
Spotify Technology Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Spotify Technology's Return-on-Tangible-Equity 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.
XSWX:SPOT vs NBIS, BIDU, RDDT: Return-on-Tangible-Equity Comparison
For the Internet Content & Information subindustry, Spotify Technology's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Spotify Technology's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Spotify Technology's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 40.46% mean?
Spotify Technology (XSWX:SPOT) has a Return-on-Tangible-Equity of 40.46% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Spotify Technology and its competitors. According to the industry distribution chart, Spotify Technology ranks #67 out of 491 companies in the Interactive Media industry, placing it in the top 13.6%.
Is Spotify Technology's Return-on-Tangible-Equity too high?
Spotify Technology's current Return-on-Tangible-Equity is 40.46%. The Interactive Media industry median Return-on-Tangible-Equity is 5.80. Spotify Technology's value of 40.46% is 597.6% above this industry median. Based on the distribution chart, Spotify Technology ranks #67 out of 491 companies in the Interactive Media industry, which is in the top quartile — a strong position relative to peers. Overall, Spotify Technology has a GF Score™ of 73/100, reflecting its overall financial health beyond just this single metric.
How does Spotify Technology's Return-on-Tangible-Equity compare to NBIS and BIDU?
According to the Interactive Media industry distribution chart, Spotify Technology ranks #67 out of 491 companies for Return-on-Tangible-Equity. This places Spotify Technology in the top 14% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.80. Spotify Technology's value of 40.46% is 597.6% 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 Return-on-Tangible-Equity for an Interactive Media company?
The median Return-on-Tangible-Equity among Interactive Media companies is 5.80, based on 491 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Spotify Technology's current Return-on-Tangible-Equity of 40.46% is 597.6% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Spotify Technology and its competitors. For the Interactive Media industry, the median Return-on-Tangible-Equity is 5.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Spotify Technology's current Return-on-Tangible-Equity is 40.46%. 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 Return-on-Tangible-Equity of 40.46%. The stock's GF Value™ is CHF397.97, compared to a current price of CHF375.50 — trading 5.6% below its estimated fair value. The current Return-on-Tangible-Equity is 40.46% and 597.6% above the Interactive Media industry median of 5.80. Spotify Technology's overall GF Score™ is 73/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Spotify Technology (XSWX:SPOT), the current Return-on-Tangible-Equity is 40.46% as of Mar. 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 CHF375.50 is trading 5.6% below its estimated GF Value™ of CHF397.97.
Key valuation signals for XSWX:SPOT:
Return-on-Tangible-Equity: 40.46%
GF Value™: CHF397.97 vs. price of CHF375.50 (5.6% below fair value)
Industry Position: 597.6% above the Interactive Media median (#67 of 491)
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.
73GF Score
Get the complete analysis for XSWX:SPOT
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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