Spotify Stock Could Be 35% Undervalued Despite Fraud Stream Removals

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โดย Simply Wall St·Read original
Summary · why it matters

Spotify Technology shares could be undervalued by about 35% based on a Discounted Cash Flow analysis, which estimates an intrinsic value of roughly $747 per share compared to the current price. The model uses the company's latest twelve-month free cash flow of approximately €3.2 billion and assumes continued growth. However, a P/E-based check shows the stock trading at around 32.3 times earnings, above a tailored fair P/E of about 27.3 times, suggesting it may be overvalued on that metric. The mixed picture comes as Spotify recently removed around 500,000 fraudulent streams, highlighting platform integrity risks that may weigh on market sentiment.

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DCF analysis suggests 35% undervaluation with intrinsic value ~$747.

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