Spotify Technology (XSWX:SPOT) 1-Year Sharpe Ratio: 0.91 (As of Jul. 15, 2026)

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Director of Data and Quant Analytics at GuruFocus
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XSWX:SPOT Spotify Technology SA XSWX:SPOT
77 GF Score
Price CHF391.50
GF Value CHF399.63
! 2 Warning Signs
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What is Spotify Technology 1-Year Sharpe Ratio?

Spotify Technology XSWX:SPOT 77 1-Year Sharpe Ratio is 0.91 as of Jul. 15, 2026. GuruFocus rates XSWX:SPOT with a GF Score™ of 77/100 and a GF Value™ of CHF399.63. The stock has 2 warning signs investors should review.

The 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk over the past year. As of today (2026-07-15), Spotify Technology's 1-Year Sharpe Ratio is 0.91.

Spotify Technology  (XSWX:SPOT) 1-Year Sharpe Ratio Explanation

The 1-Year Sharpe Ratio inidicates the risk-adjusted return of an investment over the past year. It is calculated as the annualized result of the average monthly excess return divided by its standard deviation over the past year. 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 1-Year Sharpe Ratio Related Terms

XSWX:SPOT vs NBIS, BIDU, RDDT: 1-Year Sharpe Ratio Comparison

For the Internet Content & Information subindustry, Spotify Technology's 1-Year Sharpe Ratio, along with its competitors' market caps and 1-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 1-Year Sharpe Ratio vs Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Spotify Technology's 1-Year Sharpe Ratio distribution charts can be found below:

* The bar in red indicates where Spotify Technology's 1-Year Sharpe Ratio falls into.


XSWX:SPOT
77GF Score
Spotify Technology SA XSWX:SPOT
1-Year Sharpe Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
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Spotify Technology 1-Year Sharpe Ratio Calculation

The 1-Year Sharpe Ratio measures the performance of an investment such as a stock or portfolio compared to a risk-free asset. A stock / portfolio's 1-Year Sharpe Ratio can be calculated by dividing the difference between the one-year returns of the investment and the risk-free rate, by the standard deviation of the investment returns over one year.

Frequently Asked Questions Learn more about 1-Year Sharpe Ratio →
What does a 1-Year Sharpe Ratio of 0.91 mean?
Spotify Technology (XSWX:SPOT) has a 1-Year Sharpe Ratio of 0.91 as of Jul. 15, 2026. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Spotify Technology and its competitors.
Is Spotify Technology's 1-Year Sharpe Ratio too high?
Spotify Technology's current 1-Year Sharpe Ratio is 0.91. 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 1-Year Sharpe Ratio compare to NBIS and BIDU?
Spotify Technology's 1-Year Sharpe Ratio of 0.91 can be compared against companies in the Interactive Media industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 1-Year Sharpe Ratio for an Interactive Media company?
A good 1-Year Sharpe Ratio depends on the Interactive Media industry context. However, 1-Year Sharpe Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 1-Year Sharpe Ratio mean?
A high 1-Year Sharpe Ratio can signal that a stock is expensive relative to its fundamentals. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Spotify Technology and its competitors. Spotify Technology's current 1-Year Sharpe Ratio is 0.91. 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 1-Year Sharpe Ratio of 0.91. The stock's GF Value™ is CHF399.63, compared to a current price of CHF391.50 — trading 2% below its estimated fair value. The current 1-Year Sharpe Ratio is 0.91. 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 1-Year Sharpe Ratio calculated?
1-Year Sharpe Ratio is calculated from a company's financial statements. For Spotify Technology (XSWX:SPOT), the current 1-Year Sharpe Ratio is 0.91 as of Jul. 15, 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 CHF391.50 is trading 2% below its estimated GF Value™ of CHF399.63.

Key valuation signals for XSWX:SPOT:

  • 1-Year Sharpe Ratio: 0.91
  • GF Value™: CHF399.63 vs. price of CHF391.50 (2% below fair value)
  • GF Score™: 77/100 with 2 warning signs

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 Technology Business Description

Address Regeringsgatan 19, Stockholm, SWE, 111 53
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

Get the complete analysis for XSWX:SPOT

1-Year Sharpe Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

CHF391.50
Price
CHF399.63
GF Value