Post Spotify’s (SPOT-NYSE) Q1/18 earnings report and Q2/18 guidance, we have updated our Spotify subscription valuation model. Our target price is based on a relative valuation versus Netflix, SiriusXM and Pandora. Our model has a multiple r-squared of 0.997 and p-values for both factors of under 0.09. We value Spotify at $104/share. The actual function calculates the market capitalization,which is based on 3x CLTV TTM + 44x TTM CLTV added. Our updated model now better accounts for a profitable but slower growing userbase at SiriusXM as well as tempering some of the quarterly volatility in TTM CLTV added for Spotify and Pandora. The volatility […]
Daily Archives: Tuesday, May 8, 2018 12:47am
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