WMG PE Ratio & Valuation, Is WMG Overvalued

Historical Valuation

Warner Music Group Corp (WMG) is now in the Fair zone, suggesting that its current forward PE ratio of 19.52 is considered Fairly compared with the five-year average of 28.13. The fair price of Warner Music Group Corp (WMG) is between 26.55 to 43.83 according to relative valuation method.

Relative Value

Fair Zone

26.55-43.83

Current Price：27.20

Fair

P/E

EV/EBITDA

EV/EBIT

P/S

P/OCF

P/FCF

Trailing

Forward

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Warner Music Group Corp (WMG) has a current Price-to-Book (P/B) ratio of 24.57. Compared to its 3-year average P/B ratio of 38.99, the current P/B ratio is approximately -36.98% higher. Relative to its 5-year average P/B ratio of 128.89, the current P/B ratio is about -80.94% higher. Warner Music Group Corp (WMG) has a Forward Free Cash Flow (FCF) yield of approximately 3.39%. Compared to its 3-year average FCF yield of 3.95%, the current FCF yield is approximately -14.13% lower. Relative to its 5-year average FCF yield of 3.53%, the current FCF yield is about -3.97% lower.

Competitors Valuation Multiple

AI Analysis

The average P/S ratio for WMG competitors is 0.89, providing a benchmark for relative valuation. Warner Music Group Corp Corp (WMG.O) exhibits a P/S ratio of 2.27, which is 154.18% above the industry average. Given its robust revenue growth of 10.44%, this premium appears unsustainable.

P/E

P/S

EV/EBITDA

EV/EBIT

Earnings Growth

Market Cap

Performance Decomposition

AI Analysis

Market capitalization of WMG increased by 0.00% over the past 1 year(s). The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.

The secondary factor is the Unknown, contributed 0.00% to the performance.

Overall, the performance of WMG in the past 1 year(s) is driven by Unknown.

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Frequently Asked Questions

Is WMG currently overvalued or undervalued?

What is Warner Music Group Corp (WMG) fair value?

WMG's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. The fair price of Warner Music Group Corp (WMG) is between 26.55 to 43.83 according to relative valuation method.

How does WMG's valuation metrics compare to the industry average?

The average P/S ratio for WMG's competitors is 0.89, providing a benchmark for relative valuation. Warner Music Group Corp Corp (WMG) exhibits a P/S ratio of 2.27, which is 154.18% above the industry average. Given its robust revenue growth of 10.44%, this premium appears unsustainable.

What is the current P/B ratio for Warner Music Group Corp (WMG) as of Mar 12 2026?

As of Mar 12 2026, Warner Music Group Corp (WMG) has a P/B ratio of 24.57. This indicates that the market values WMG at 24.57 times its book value.

What is the current FCF Yield for Warner Music Group Corp (WMG) as of Mar 12 2026?

As of Mar 12 2026, Warner Music Group Corp (WMG) has a FCF Yield of 3.39%. This means that for every dollar of Warner Music Group Corp's market capitalization, the company generates 3.39 cents in free cash flow.

What is the current Forward P/E ratio for Warner Music Group Corp (WMG) as of Mar 12 2026?

As of Mar 12 2026, Warner Music Group Corp (WMG) has a Forward P/E ratio of 19.52. This means the market is willing to pay $19.52 for every dollar of Warner Music Group Corp's expected earnings over the next 12 months.

What is the current Forward P/S ratio for Warner Music Group Corp (WMG) as of Mar 12 2026?

As of Mar 12 2026, Warner Music Group Corp (WMG) has a Forward P/S ratio of 2.27. This means the market is valuing WMG at $2.27 for every dollar of expected revenue over the next 12 months.

WMG Valuation