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WMG Valuation

Warner Music Group Corp
$
29.700
-1.34(-4.317%)1D
  • Overview
  • Forecast
  • Valuation
  • Earnings

WMG Relative Valuation

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. If the market price exceeds this fair value range, WMG is overvalued; if below, it's undervalued.

Historical Valuation

Warner Music Group Corp (WMG) is now in the Fair zone, suggesting that its current forward PE ratio of 25.41 is considered Fairly compared with the five-year average of 31.04. The fair price of Warner Music Group Corp (WMG) is between 24.89 to 43.48 according to relative valuation methord.
Relative Value
Fair Zone
24.89-43.48
Current Price:31.04
Fair
25.54
PE
1Y
3Y
5Y
Trailing
Forward
14.08
EV/EBITDA
Warner Music Group Corp. (WMG) has a current EV/EBITDA of 14.08. The 5-year average EV/EBITDA is 16.50. The thresholds are as follows: Strongly Undervalued below 9.70, Undervalued between 9.70 and 13.10, Fairly Valued between 19.89 and 13.10, Overvalued between 19.89 and 23.29, and Strongly Overvalued above 23.29. The current Forward EV/EBITDA of 14.08 falls within the Historic Trend Line -Fairly Valued range.
18.75
EV/EBIT
Warner Music Group Corp. (WMG) has a current EV/EBIT of 18.75. The 5-year average EV/EBIT is 23.87. The thresholds are as follows: Strongly Undervalued below 11.41, Undervalued between 11.41 and 17.64, Fairly Valued between 30.10 and 17.64, Overvalued between 30.10 and 36.33, and Strongly Overvalued above 36.33. The current Forward EV/EBIT of 18.75 falls within the Historic Trend Line -Fairly Valued range.
2.48
PS
Warner Music Group Corp. (WMG) has a current PS of 2.48. The 5-year average PS is 2.82. The thresholds are as follows: Strongly Undervalued below 1.77, Undervalued between 1.77 and 2.29, Fairly Valued between 3.34 and 2.29, Overvalued between 3.34 and 3.87, and Strongly Overvalued above 3.87. The current Forward PS of 2.48 falls within the Historic Trend Line -Fairly Valued range.
19.39
P/OCF
Warner Music Group Corp. (WMG) has a current P/OCF of 19.39. The 5-year average P/OCF is 22.87. The thresholds are as follows: Strongly Undervalued below 10.02, Undervalued between 10.02 and 16.44, Fairly Valued between 29.29 and 16.44, Overvalued between 29.29 and 35.71, and Strongly Overvalued above 35.71. The current Forward P/OCF of 19.39 falls within the Historic Trend Line -Fairly Valued range.
23.14
P/FCF
Warner Music Group Corp. (WMG) has a current P/FCF of 23.14. The 5-year average P/FCF is 29.40. The thresholds are as follows: Strongly Undervalued below 9.26, Undervalued between 9.26 and 19.33, Fairly Valued between 39.47 and 19.33, Overvalued between 39.47 and 49.54, and Strongly Overvalued above 49.54. The current Forward P/FCF of 23.14 falls within the Historic Trend Line -Fairly Valued range.
Warner Music Group Corp (WMG) has a current Price-to-Book (P/B) ratio of 28.34. Compared to its 3-year average P/B ratio of 50.75 , the current P/B ratio is approximately -44.15% higher. Relative to its 5-year average P/B ratio of 140.32, the current P/B ratio is about -79.80% higher. Warner Music Group Corp (WMG) has a Forward Free Cash Flow (FCF) yield of approximately 4.68%. Compared to its 3-year average FCF yield of 3.99%, the current FCF yield is approximately 17.31% lower. Relative to its 5-year average FCF yield of 3.41% , the current FCF yield is about 37.28% lower.
28.49
P/B
Median3y
50.75
Median5y
140.32
4.68
FCF Yield
Median3y
3.99
Median5y
3.41

Competitors Valuation Multiple

The average P/S ratio for WMG's competitors is 1.29, providing a benchmark for relative valuation. Warner Music Group Corp Corp (WMG) exhibits a P/S ratio of 2.48, which is 92.51% above the industry average. Given its robust revenue growth of -0.67%, this premium appears unsustainable.

Performance Decomposition

1Y
3Y
5Y
Market capitalization of WMG increased by 0.63% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 22.08 to 36.09.
The secondary factor is the Revenue Growth, contributed -0.67%to the performance.
Overall, the performance of WMG in the past 1 year is driven by P/E Change. Which is more unsustainable.
-0.67%
1.49B → 1.48B
Revenue Growth
+
-62.21%
6.43 → 2.43
Margin Expansion
+
63.51%
22.08 → 36.09
P/E Change
=
0.63%
29.51 → 29.70
Mkt Cap Growth

FAQ

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Is Warner Music Group Corp (WMG) currently overvalued or undervalued?

Warner Music Group Corp (WMG) is now in the Fair zone, suggesting that its current forward PE ratio of 25.41 is considered Fairly compared with the five-year average of 31.04. The fair price of Warner Music Group Corp (WMG) is between 24.89 to 43.48 according to relative valuation methord.
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What is Warner Music Group Corp (WMG) fair value?

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

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What is the current P/B ratio for Warner Music Group Corp (WMG) as of Jul 30 2025?

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What is the current FCF Yield for Warner Music Group Corp (WMG) as of Jul 30 2025?

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What is the current Forward P/E ratio for Warner Music Group Corp (WMG) as of Jul 30 2025?

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What is the current Forward P/S ratio for Warner Music Group Corp (WMG) as of Jul 30 2025?