Spotify Technology S.A. (SPOT) PEG Ratio

Potentially Undervalued

PE ratio relative to earnings growth — is the valuation justified?

0.51

PEG Ratio

0.51

Growth Rate Source

Limited Data Quality1-Year EPS CAGR

Current Price

$494.72

TTM EPS

$10.75

P/E Ratio

46.02

Growth Rate

89.9%

1-Year EPS CAGR

Sector

Communication Services

Internet Content & Information

Calculated

7/28/2026

7:18:51 AM

Peer Comparison

Sample Size

5 peers

Industry Median PEG

0.55

25th Percentile

0.55

75th Percentile

0.70

SPOT PEG (0.51) vs Industry Median (0.55): 7% discount

Symbol	Company	PEG	P/E	Growth	vs SPOT
TCEHY	Tencent Holdings Limited	0.30	2.2	7.4%	-41%
GOOGL	Alphabet Inc.	0.55	16.4	29.8%	+8%
GOOG	Alphabet Inc.	0.55	16.4	29.8%	+8%
FVRR	Fiverr International Ltd.	0.70	12.9	18.4%	+37%
META	Meta Platforms, Inc.	1.16	21.6	18.6%	+127%

How to Interpret PEG Ratio

PEG < 1.0 — Potentially Undervalued. The stock may be priced below its earnings growth rate, suggesting a potential buying opportunity.

PEG 1.0–2.0 — Fairly Valued. The stock price is roughly in line with its earnings growth. A PEG of 1.0 is often considered "fair value."

PEG > 2.0 — Potentially Overvalued. The stock may be priced above what its earnings growth justifies.

Limitations:PEG ratios are less reliable for financial firms (earnings driven by interest margins), companies with negative/zero earnings growth, and hypergrowth companies (>100% growth) where the ratio may appear misleadingly low. Always use PEG alongside other valuation metrics.

Spotify Technology S.A. (SPOT) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on SPOT

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Spotify Technology S.A. (SPOT) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on SPOT

Compare with peers

Explore