` Comparison: SPOT vs DIS - Alpha Spread

SPOT
vs
DIS

Over the past 12 months, SPOT has underperformed DIS, delivering a return of -6% compared to the DIS's +16% growth.

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SPOT
DIS
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Valuation Comparison

SPOT Intrinsic Value
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DIS Intrinsic Value
121.02 USD
Undervaluation 20%
Intrinsic Value
Price $96.61
Company Last Price Intrinsic Value DCF Value Multiples-Based Value Wall St Target
Spotify Technology SA
NYSE:SPOT
488.97 USD
Walt Disney Co
NYSE:DIS
96.61 USD
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Valuation Scenario:
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Base Case
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Growth Comparison

Growth Over Time
SPOT, DIS

SPOT
DIS
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Revenue
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Company LTM Historical Growth Growth Streak % Positive Years Max Drawdown Volatility Forecasted Growth
3 Years 5 Years 10 Years 1 Year 3 Years
Spotify Technology SA
Revenue
Walt Disney Co
Revenue

All metrics are calculated based on data from the last 10 years.

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Profitability Comparison

Free Cash Flow
SPOT, DIS

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DIS
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Free Cash Flow
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Company LTM Average Historical Growth FCF Margin Conversion
3 Years 5 Years 3 Years 5 Years 10 Years
Spotify Technology SA
NYSE:SPOT
Walt Disney Co
NYSE:DIS
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What is Free Cash Flow?

Gross Margin

SPOT
32%
DIS
37.3%

Operating Margin

SPOT
12.8%
DIS
14.2%

Net Margin

SPOT
12.9%
DIS
12.8%

FCF Margin

SPOT
16.7%
DIS
7.4%

ROE

SPOT
31.9%
DIS
11.7%

ROA

SPOT
16.4%
DIS
6.2%

ROIC

SPOT
52.1%
DIS
8.7%

ROCE

SPOT
26.7%
DIS
8.4%

Solvency Comparison

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Balance Sheet Comparison
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Stocks Performance

Stocks Performance
SPOT, DIS

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Performance Gap
SPOT, DIS

Performance Gap Between SPOT and DIS
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Performance By Year
SPOT, DIS

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SPOT
DIS
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Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.

Warren Buffett