

Spotify has a Price / Sales (FWD) ratio higher difference of 40.80% and a Price / Cash Flow (FWD) ratio higher difference of 469.45% versus the median values of the Communication Services sector.
#WHEN CAN I BUY SPOTIFY STOCK FREE#
What about Price / Sales (FWD) and Price / Cash Flow (FWD) ratios? I have chosen the free cash flow ratio, especially because Spotify, despite its losses, generated positive free cash flows that are highly encouraging. Take for example the EV / EBIT (FWD) ratio for SPOT stock which is 1,744.61, a staggering 10,897.66% difference from the median value of the sector.ħ Water Stocks to Buy as the World Fights for the Next Scarce Resource Most key ratios both on a TMM basis and on a forward valuation for SPOT stock show a very large premium to its sector median values. The Communication Services sector median value for EV / Sales (TTM) and EV / Sales (FWD) are 2.35x and 2.21x, respectively.


Compared to the Communication Services sector, Spotify has only a minor discount on its EV / Sales (TTM) ratio and EV / Sales (FWD) ratio of 2.31x and 2.02x, respectively. Valuation is either forward-looking or based on what happened in the past quarters or twelve months. This is a huge figure as financial metrics used in valuation should be as low as possible to make a stock attractive. Furthermore, it has a P/E GAAP (FWD) of 1,641.93. Spotify has been losing money for the whole period from 2017 to 2021.
