IPO Valuation Excel Model - Spotify
Originally published: 19/03/2018 15:06
Last version published: 21/03/2018 16:04
Publication number: ELQ-69395-3
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IPO Valuation Excel Model - Spotify

A comprehensive overview of Spotify's financial performance and analysis of its IPO

This excel tool gives an incredibly detailed overview of Spotify's financial performance and its IPO.

This gives a comprehensive insight into Spotify's rapid growth, with vast amounts of figures and data used to calculate growth rates. This tool breaks down all of this data in the "summary sheet", which analyses various statistics, from Revenues and Revenue Growth Rate, to Cost of Capital, FCFF and Implied ROC. As such, the summary tab offers an incredibly detailed yet easy to follow analysis of Spotify's financial performance.

The "Stories to Numbers" tab puts the numbers into context, documenting the story of Spotify's growth alongside the numbers. This makes the numbers more easy to understand and get your head round.

This spreadsheet also offers the opportunity to convert R&D expenses from operating to capital expenses in the "R&D converter tab". Through the input data this spreadsheet calculates the adjustment to Operating Income, Tax Effect of R&D Expensing as well as the amortization of asset for the current year. The cost of capital worksheet creates an estimate of the current cost of capital based on huge amounts of input data. Furthermore, this tool offers an extensive list of industry averages from both the US and around the world, allowing you to compare performance to industry averages.
The tool then breaks down Spotify's financial information into 3 charts based on growth, revenue breakdown and content costs.

This Excel file gives an in depth analysis into the financial figures that drive Spotify's growth. This template can be used as a useful guide to financial planning and growth tracking.

The accompanying PDF document will give an insightful, detailed account of Spotify's unusual IPO structure. This is an incredibly useful case study to analyse and learn from.

This document is broken down into four clear sections:

- The Back Story
- The Spotify IPO
- Spotify Valuation
- The Bottom Line

As such, this PDF document offers a detailed overview of Spotify's financial performance and its IPO.

This document gives a detailed analysis of the Spotify IPO and how it differs to the IPOs of many large companies. This is broken down into two fundamental differences:

Firstly, the fact that the Spotify IPO uses no banks and instead lets demand and supply set the price. Secondly, the fact that the cash that comes in from shares bought by the public is not kept in the company, and is instead is given to existing equity investors in return for their holdings. This document analyses and scrutinises these differences in approach.

Ultimately, this PDF offers a detailed analysis of the Spotify IPO and an in-depth, estimated Spotify valuation. This is a great case study of the Spotify IPO, showing how it differs to the standard big business IPOs and how that works for Spotify.

This Best Practice includes
1 PDF Document, 1 Excel Model

Prof. Aswath Damodaran offers you this Best Practice for free!

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