I enjoy playing around with the graphing function on Koyfin. With Spotify trading well below its 2018 IPO price, I decided to take a look at the evolution of its valuation over time. The results are somewhat shocking and imply record-high pessimism surrounding the future of Spotify.
It trades nearly two standard deviations away from its historical EV/Sales and EV/Gross Profit. If management even comes close to the 2030 targets laid out in its investor day, there are outstanding returns to be had in this name. Sometimes, it pays to be a contrarian.