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 Undervalued zone, suggesting that its current forward PE ratio of 17.86 is considered Undervalued compared with the five-year average of 29.28. The fair price of Warner Music Group Corp (WMG) is between 30.37 to 51.90 according to relative valuation methord. Compared to the current price of 27.81 USD , Warner Music Group Corp is Undervalued By 8.43%.
Relative Value
Fair Zone
30.37-51.90
Current Price：27.81
8.43%
Undervalued
17.88
PE
1Y
3Y
5Y
Trailing
Forward
11.65
EV/EBITDA
Warner Music Group Corp. (WMG) has a current EV/EBITDA of 11.65. The 5-year average EV/EBITDA is 16.10. The thresholds are as follows: Strongly Undervalued below 9.33, Undervalued between 9.33 and 12.72, Fairly Valued between 19.49 and 12.72, Overvalued between 19.49 and 22.87, and Strongly Overvalued above 22.87. The current Forward EV/EBITDA of 11.65 falls within the Undervalued range.
16.12
EV/EBIT
Warner Music Group Corp. (WMG) has a current EV/EBIT of 16.12. The 5-year average EV/EBIT is 23.01. The thresholds are as follows: Strongly Undervalued below 10.82, Undervalued between 10.82 and 16.92, Fairly Valued between 29.11 and 16.92, Overvalued between 29.11 and 35.21, and Strongly Overvalued above 35.21. The current Forward EV/EBIT of 16.12 falls within the Undervalued range.
2.08
PS
Warner Music Group Corp. (WMG) has a current PS of 2.08. The 5-year average PS is 2.78. The thresholds are as follows: Strongly Undervalued below 1.72, Undervalued between 1.72 and 2.25, Fairly Valued between 3.31 and 2.25, Overvalued between 3.31 and 3.85, and Strongly Overvalued above 3.85. The current Forward PS of 2.08 falls within the Undervalued range.
15.41
P/OCF
Warner Music Group Corp. (WMG) has a current P/OCF of 15.41. The 5-year average P/OCF is 22.33. The thresholds are as follows: Strongly Undervalued below 9.61, Undervalued between 9.61 and 15.97, Fairly Valued between 28.69 and 15.97, Overvalued between 28.69 and 35.04, and Strongly Overvalued above 35.04. The current Forward P/OCF of 15.41 falls within the Undervalued range.
17.94
P/FCF
Warner Music Group Corp. (WMG) has a current P/FCF of 17.94. The 5-year average P/FCF is 27.97. The thresholds are as follows: Strongly Undervalued below 9.10, Undervalued between 9.10 and 18.54, Fairly Valued between 37.40 and 18.54, Overvalued between 37.40 and 46.84, and Strongly Overvalued above 46.84. The current Forward P/FCF of 17.94 falls within the Undervalued range.
Warner Music Group Corp (WMG) has a current Price-to-Book (P/B) ratio of 22.49. Compared to its 3-year average P/B ratio of 43.07 , the current P/B ratio is approximately -47.79% higher. Relative to its 5-year average P/B ratio of 164.13, the current P/B ratio is about -86.30% higher. Warner Music Group Corp (WMG) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.95%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.47% , the current FCF yield is about -100.00% lower.
22.51
P/B
Median3y
43.07
Median5y
164.13
3.70
FCF Yield
Median3y
3.95
Median5y
3.47
Competitors Valuation Multiple
The average P/S ratio for WMG's competitors is , providing a benchmark for relative valuation. Warner Music Group Corp Corp (WMG) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 14.60%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of WMG decreased by 9.57% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 2.94 to 5.84.
The secondary factor is the Revenue Growth, contributed 14.60%to the performance.
Overall, the performance of WMG in the past 1 year is driven by Margin Expansion. Which is more sustainable.
People Also Watch
FAQ
Is Warner Music Group Corp (WMG) currently overvalued or undervalued?
What is Warner Music Group Corp (WMG) fair value?
How does WMG's valuation metrics compare to the industry average?
What is the current P/B ratio for Warner Music Group Corp (WMG) as of Dec 05 2025?
What is the current FCF Yield for Warner Music Group Corp (WMG) as of Dec 05 2025?
What is the current Forward P/E ratio for Warner Music Group Corp (WMG) as of Dec 05 2025?