Snap Inc (SNAP) is overvalued and Spotify Technology SA (SPOT) is overvalued.
Both trade above our estimate of their intrinsic value. SPOT is the closer of the two: -85%, against -200% for SNAP.
Values as of the 19 Oct 2026 close.
A 1.0x revenue multiple, discounted for its losses, values the shares at $2.09; the price of $6.27 is 200% above that value.
Leak Score 34/100 on 10 of 12 signals
Discounting its cash flows at 11.7% (average of 3 methods) values the shares at $280.29; the price of $518.76 is 85% above that value, and 68% of that value comes from beyond year five.
Leak Score 71/100 on 12 of 12 signals
| Metric | SNAP | SPOT |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $6.27 | $518.76 |
| Intrinsic value | $2.09 | $280.29 |
| Margin of safety | -200% | -85% |
| Leak Score | 34/100 (10/12) | 71/100 (12/12) |
| Market cap | $10.8B | $108.3B |
| Revenue growth, 5 years | 18.8% | 16.6% |
| Operating margin | -5.1% | 14.6% |
| Net margin | -4.9% | 18.4% |
| Return on equity | -15.6% | 44.9% |
| Debt to equity | 2.19 | 0.06 |
| P/E | — | 32.8x |
| Forward P/E | 42.6x | 30.6x |
| P/B | 5.6x | 11.3x |