GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Spotify Technology SA (MEX:SPOT N) » Definitions » 3-Year Sharpe Ratio

Spotify Technology (MEX:SPOT N) 3-Year Sharpe Ratio : 1.48 (As of Jun. 27, 2025)


View and export this data going back to 2019. Start your Free Trial

What is Spotify Technology 3-Year Sharpe Ratio?

The 3-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk over the past three years. As of today (2025-06-27), Spotify Technology's 3-Year Sharpe Ratio is 1.48.


Competitive Comparison of Spotify Technology's 3-Year Sharpe Ratio

For the Internet Content & Information subindustry, Spotify Technology's 3-Year Sharpe Ratio, along with its competitors' market caps and 3-Year Sharpe 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 3-Year Sharpe Ratio Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Spotify Technology's 3-Year Sharpe Ratio distribution charts can be found below:

* The bar in red indicates where Spotify Technology's 3-Year Sharpe Ratio falls into.


;
;

Spotify Technology 3-Year Sharpe Ratio Calculation

The 3-Year Sharpe Ratio measures the performance of an investment such as a stock or portfolio compared to a risk-free asset in the last three years. A stock / portfolio's 3-Year Sharpe Ratio can be calculated by dividing the difference between the three-year average monthly returns of the investment and the risk-free rate, by the standard deviation of the investment returns over the past three years.


Spotify Technology  (MEX:SPOT N) 3-Year Sharpe Ratio Explanation

The 3-Year Sharpe Ratio inidicates the risk-adjusted return of an investment over the past three years. It is calculated as the annualized result of the average three-year monthly excess returns divided by its standard deviation in the three-year period. The monthly excess return is the monthly investment return minus the monthly risk-free rate (typically the 10-year Treasury Constant Maturity Rate). If the risk-free rate for a specific region is not available, U.S. data is used by default.

The greater a portfolio's Sharpe Ratio, the better its risk-adjusted performance. A negative Sharpe Ratio means the risk-free rate is greater than the portfolio’s historical or projected return, or else the portfolio's return is expected to be negative.


Spotify Technology 3-Year Sharpe Ratio Related Terms

Thank you for viewing the detailed overview of Spotify Technology's 3-Year Sharpe Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Spotify Technology Business Description

Address
Regeringsgatan 19, Stockholm, SWE, 111 53
Spotify is the leading global music streaming service provider, with nearly 700 million monthly active users and over 250 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 the subscribers, who pay a monthly fee to access a music library that consists of most of the most popular songs ever recorded, including all from the major record labels. The firm also sells separate audiobook subscriptions 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.

Spotify Technology Headlines

No Headlines