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

Spotify Technology (MEX:SPOT N) 3-Year Sortino Ratio : 3.74 (As of Jul. 22, 2025)


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

What is Spotify Technology 3-Year Sortino Ratio?

The 3-Year Sortino Ratio measures the additional return that an investor receives per unit of the downside risk over the past three years. As of today (2025-07-22), Spotify Technology's 3-Year Sortino Ratio is 3.74.


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

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

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

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


;
;

Spotify Technology 3-Year Sortino Ratio Calculation

The 3-Year Sortino Ratio measures the risk-adjusted return of an investment asset or portfolio in the last three year, focusing specifically on downside risk rather than total risk. A stock / portfolio's 3-Year Sortino 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 downside risks over the past three year.

A downside risk is a potential loss from the asset or investment. The Downside risk here is measured by the downside deviation, which is the standard deviation of negative returns.


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

The 3-Year Sortino Ratio inidicates the risk-adjusted return of an investment over the past three year. It is calculated as the annualized result of the average three-year monthly excess returns divided by the standard deviation of negative returns 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.

Differnt from the Sharpe Ratio that penalizes both upside and downside volatility equally, the Sortino Ratio penalizes only those returns falling below a user-specified target or required rate of return. The expected returns here is set to the risk-free rate as well.


Spotify Technology 3-Year Sortino Ratio Related Terms

Thank you for viewing the detailed overview of Spotify Technology's 3-Year Sortino 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