The historical rank and industry rank for Spotify Technology's ROE % or its related term are showing as below:
WBO:SPOT'
s ROE % Range Over the Past 10 Years
Min: -10259.29 Med: -8.9 Max: 37.19
Current: 37.19
During the past 11 years, Spotify Technology's highest ROE % was 37.19%. The lowest was -10,259.29%. And the median was -8.90%.
WBO:SPOT's ROE % is ranked better than 93.45% of 534
companies
in the Interactive Media industry
Industry Median: 2.345
vs WBO:SPOT: 37.19
Spotify Technology (WBO:SPOT) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Spotify Technology ROE % Related Terms
Spotify Technology ROE % Historical Data
* Premium members only.
The historical data trend for Spotify Technology's ROE % 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.
For the Internet Content & Information subindustry, Spotify Technology's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Spotify Technology's ROE % distribution charts can be found below:
* The bar in red indicates where Spotify Technology's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Spotify Technology (WBO:SPOT) has a ROE % of 35.30% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Spotify Technology and its competitors. According to the industry distribution chart, Spotify Technology ranks #35 out of 534 companies in the Interactive Media industry, placing it in the top 6.6%.
Is Spotify Technology's ROE % too high?
Spotify Technology's current ROE % is 35.30%. The Interactive Media industry median ROE % is 2.35. Spotify Technology's value of 35.30% is 1405.3% above this industry median. Based on the distribution chart, Spotify Technology ranks #35 out of 534 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 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Spotify Technology's ROE % compare to NBIS and BIDU?
According to the Interactive Media industry distribution chart, Spotify Technology ranks #35 out of 534 companies for ROE %. This places Spotify Technology in the top 7% of its industry — outperforming the majority of peers. The industry median ROE % is 2.35. Spotify Technology's value of 35.30% is 1405.3% 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 ROE % for an Interactive Media company?
The median ROE % among Interactive Media companies is 2.35, based on 534 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Spotify Technology's current ROE % of 35.30% is 1405.3% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Spotify Technology and its competitors. For the Interactive Media industry, the median ROE % is 2.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Spotify Technology's current ROE % is 35.30%. 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?
Based on GuruFocus' analysis, Spotify Technology (WBO:SPOT) is currently considered Modestly Undervalued. The stock's GF Value™ is €434.19, compared to a current price of €391.00 — trading 9.9% below its estimated fair value. The current ROE % is 35.30% and 1405.3% above the Interactive Media industry median of 2.35. Spotify Technology's overall GF Score™ is 81/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Spotify Technology (WBO:SPOT), the current ROE % is 35.30% 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 (WBO:SPOT) Overvalued in 2026?
Based on GuruFocus' analysis, Spotify Technology stock appears to be undervalued.
The current stock price of €391.00 is trading 9.9% below its estimated GF Value™ of €434.19.
GuruFocus considers Spotify Technology to be Modestly Undervalued.
Key valuation signals for WBO:SPOT:
ROE %: 35.30%
GF Value™: €434.19 vs. price of €391.00 (9.9% below fair value)
Industry Position: 1405.3% above the Interactive Media median (#35 of 534)
No single metric tells the full story. See the WBO: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.
81GF Score
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