Spotify's intrinsic worth is 140 billion USD, according to my calculations and opinion.
The current market capitalisation of Spotify is 18.9 billion USD.
Spotify's revenue is growing by an average of around 22 % year on year on for the last four running quarters, which compared to the slowing down of revenue growth or in some cases even falling revenue year on year of many of the largest, midsize and small size technology companies is a remarkable achievement.
Apparently, music is still consumed in droves, even during recessionary economic periods.
One explanation is that music brings happiness in a way and thus helps people cope with the current economic hardships.
While other technology goods like iPhones, Macs, other smartphones, computers etc. are considered discretionary, luxury goods and their sales are falling in economic slumps.
Spotify exhibits net profit margin of around 5 % in just one of the last four running reported quarters, while the other two are with negative profitability for Spotify.
So the scant profitability lowers the eventual valuation multiples of Spotify.
All in all, it will be interesting to observe how big in terms of market value company, Spotify will become.
Since Spotify is basically the only large scale listed music streaming company.
We are watching a rare, live experiment in history.
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