Question 1

What is Spotify's P/E ratio?

Accepted Answer

Spotify (SPOT) P/E ratio is 31.4× as of July 22, 2026. The ratio is calculated by dividing market capitalisation by trailing twelve-month earnings (net income), using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/E ratio calculated?

Accepted Answer

P/E = Share Price ÷ Trailing Twelve-Month (TTM) Diluted EPS, or equivalently Market Capitalisation ÷ TTM Net Income. All inputs are sourced from audited GAAP/IFRS filings and translated to USD using period-end exchange rates so the multiple is comparable across companies and currencies.

Question 3

What is the P/E ratio?

Accepted Answer

The price-to-earnings (P/E) ratio, also called the earnings multiple, measures how much investors pay per dollar of a company's trailing twelve-month (TTM) earnings. It is calculated as share price ÷ TTM diluted EPS (equivalent to market capitalisation ÷ TTM net income). A higher P/E implies the market is pricing in stronger future earnings growth or lower risk; a lower P/E can signal slower expected growth, higher risk, or potential undervaluation.

Question 4

What is a good P/E ratio for Spotify?

Accepted Answer

There is no universal "good" P/E. As a rule of thumb, the S&P 500 has historically averaged a P/E in the mid-to-high teens; mature, slow-growth businesses commonly trade in the 10–18× range, while high-growth or asset-light companies often trade at 25–50×+. What matters is the comparison to sector peers and to the company's own historical range. For Spotify specifically, the relevant sector benchmark is the current sector median of 21.9×.

Question 5

Is Spotify's P/E ratio high or low?

Accepted Answer

Spotify's P/E ratio of 31.4× is below its own 5-year average of 122.0× and above the sector median of 21.9×. That places the current reading at the 5th percentile of its 10-year history. A higher multiple usually reflects stronger expected growth, lower perceived risk, or higher returns on capital; a lower multiple reflects the opposite.

Question 6

What is Spotify's historical P/E ratio range?

Accepted Answer

In the available daily series, Spotify (SPOT) P/E ratio has ranged from a low of 27.6× in 2026 to a high of 388.4× in 2022. The 5-year average is 122.0× and the 5-year median is 90.9×.

Question 7

What was Spotify's P/E ratio in 2025?

Accepted Answer

Spotify (SPOT) P/E ratio at the end of 2025 was 46.7×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month earnings figure available at that date.

Question 8

Why does Spotify's P/E ratio change over time?

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (earnings). Share-price changes — driven by interest rates, earnings expectations, risk appetite, and broader market sentiment — typically dominate short-term moves, while changes in the underlying fundamental drive the longer-term trend. As a result, the ratio can rise during stock-price rallies even if the business itself has not become more valuable, and fall during sell-offs even when fundamentals are improving.


2025	$119B	$2.56B	46.7×	-27.1×	Dec 31, 2025
2024	$90.8B	$1.23B	73.8×	—	Dec 31, 2024
2023	$36.8B	-$575M	—	—	Dec 31, 2023
2022	$15.2B	-$429M	—	—	Dec 31, 2022
2021	$45B	-$38.6M	—	—	Dec 31, 2021
2020	$59.7B	-$658M	—	—	Dec 31, 2020
2019	$27.4B	-$210M	—	—	Dec 31, 2019
2018	$20.5B	-$123M	—	—	Dec 31, 2018
2017	$26.5B	-$1.42B	—	—	Dec 31, 2017
2016	$22.3B	-$601M	—	—	Dec 31, 2016


Live Nation Entertainment (LYV)	423.6×
Omnicom Group (OMC)	244.9×
DoorDash (DASH)	70.7×
Roku (ROKU)	69.3×
TKO Group Holdings (TKO)	68.9×
Telephone and Data Systems (TDS)	36.5×
Reddit (RDDT)	36.4×
Pinterest (PINS)	34.9×
T-Mobile US (TMUS)	21.9×
Netflix (NFLX)	21.9×
Meta (META)	20.5×
Walt Disney (DIS)	14.5×
Fox (FOXA)	14.5×
News (NWSA)	13.1×
Verizon (VZ)	12.2×
Match Group (MTCH)	11.2×
John Wiley & Sons (WLY)	9.7×
Versant Media Group, Inc. Class A (VSNT)	6.3×
Comcast (CMCSA)	5.5×
Charter Communications (CHTR)	5.5×

P/E Ratio for Spotify (SPOT) 2024-2026

P/E Ratio daily chart for Spotify (SPOT)

Historical P/E Ratio for Spotify (SPOT) from 2016 to 2025

About P/E Ratio at Spotify (SPOT)

Spotify P/E Ratio by Year

Spotify P/E Ratio 2025: 46.7×

Spotify P/E Ratio 2024: 73.8×

Sector peers by P/E Ratio — chart

Sector peers by P/E Ratio — table

Frequently asked questions

Spotify (SPOT) Key Financials