Spotify Technology S.A. cash flow to debt ratio of 126.26% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.

Spotify Technology S.A.'s free cash flow has increased 25.74% from $2.28G last year to $2.87G, signaling increasing performance

Spotify Technology S.A.'s debt to equity ratio is 0.06, which means that the company's assets are healthy financed, signaling financial stability. READ MORE: A ratio under 0.60 means the company finances its assets with own equity, signaling financial stability and good management.

Spotify Technology S.A.'s debt has decreased relative to shareholder equity from 0.36 last year to 0.06 today, signaling strengthened financials

Spotify Technology S.A. has a net debt to EBITDA ratio of 0.00x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Spotify Technology S.A. earns at least as much interest as it pays. Interest obligations are fully covered.

Spotify Technology S.A.'s profit margin has increased (112.77%) in the last year from 7.26% to 15.45%, signaling increasing performance

Spotify Technology S.A.'s short-term assets of $10.49G exceed its short-term liabilities of $6.08G

Spotify Technology S.A.'s return on assets of 20.61% is higher than the 5.00% threshold, indicating efficient asset utilization

Spotify Technology S.A.'s return on equity of 35.18%, is higher than 15.00%, indicating good performance

Spotify Technology S.A.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Spotify Technology S.A. had positive net income in only 2.00 out of 5 years, indicating unstable earnings

Spotify Technology S.A. has positive free cash flow, indicating the company generates cash after capital expenditures

Spotify Technology S.A. has a free cash flow yield of 3.03%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Spotify Technology S.A.'s yearly earnings has increased 94.38% since last year from $1.14G to $2.21G, signaling increasing performance

Spotify Technology S.A.'s yearly revenue has increased 5.33% since last year from $15.67G to $16.51G, signaling increasing performance

ROIC 27.00% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.

Spotify Technology S.A.'s 3-year revenue CAGR of 13.59% is positive, indicating growing revenue over the past 3 years

Spotify Technology S.A. had revenue growth in 5.00 out of 5 years, indicating consistent revenue performance

Spotify Technology S.A. had positive ROE in only 2.00 out of 5 years, indicating inconsistent returns on equity

Spotify Technology S.A. is overvalued relative to its fair value price of 261.86 based on Discounted Cash Flow model

Spotify Technology S.A. has an earnings yield of 2.86%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Spotify Technology S.A. is overvalued relative to its fair value price of 94.39 based on EBITDA multiple model

Spotify Technology S.A. has an EV/EBITDA ratio of 26.43x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Spotify Technology S.A. is overvalued relative to its fair value price of 16.56 based on Earnings Fair Value model

Spotify Technology S.A. has a PEG-ratio under 1 which is considered undervalued

Spotify Technology S.A. has a price-to-book ratio of 10.36x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Spotify Technology S.A. has a price-to-sales ratio of 4.74x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue