With the recent launch of Spotify, we have examined SPOT’s peer group including Netflix, Sirius XM and Pandora. We found a strong relationship between the Customer LifeTime Value added (CLTV added TTM) and Customer LifeTime Value (CLTV TTM) and the dilutive market capitalization of these companies.
Target Price Calculation
Based on the accumulated and relative data of its online media competitors, we believe Pandora is a BUY.
In the potential (probable) absence of no future operating profit, we believe Pandora can be valued using a similar valuation model as Spotify. Using Netflix, SiriusXM, Spotify and Pandora, there is a strong relationship between these companies stock prices and SaaS metrics shown below.
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For the purposes of complying with NYSE, NASDAQ and all Self-Regulatory Organizations, Perspectec Inc. has assigned the following rating system BUY, HOLD/NEUTRAL, SELL for the securities which are the views expressed by an analyst, Independent contractor, and or an employee of Perspectec Inc. The information and opinions in these reports were prepared by Perspectec Inc. or an analyst, independent contractor. Though the information herein is believed to be reliable and has been obtained from public sources believed to be reliable. Perspectec Inc. makes no representation as to its accuracy or completeness.
