WMG PE Ratio & Valuation,Is WMG Overvalued

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 17.82 is considered Undervalued compared with the five-year average of 29.15. The fair price of Warner Music Group Corp (WMG) is between 30.42 to 52.01 according to relative valuation methord. Compared to the current price of 27.84 USD , Warner Music Group Corp is Undervalued By 8.47%.

Relative Value

Fair Zone

30.42-52.01

Current Price：27.84

8.47%

Undervalued

17.86

11.63

EV/EBITDA

Warner Music Group Corp. (WMG) has a current EV/EBITDA of 11.63. The 5-year average EV/EBITDA is 16.06. The thresholds are as follows: Strongly Undervalued below 9.27, Undervalued between 9.27 and 12.67, Fairly Valued between 19.45 and 12.67, Overvalued between 19.45 and 22.85, and Strongly Overvalued above 22.85. The current Forward EV/EBITDA of 11.63 falls within the Undervalued range.

16.09

EV/EBIT

Warner Music Group Corp. (WMG) has a current EV/EBIT of 16.09. The 5-year average EV/EBIT is 22.93. The thresholds are as follows: Strongly Undervalued below 10.75, Undervalued between 10.75 and 16.84, Fairly Valued between 29.03 and 16.84, Overvalued between 29.03 and 35.12, and Strongly Overvalued above 35.12. The current Forward EV/EBIT of 16.09 falls within the Undervalued range.

2.08

Warner Music Group Corp. (WMG) has a current PS of 2.08. The 5-year average PS is 2.77. The thresholds are as follows: Strongly Undervalued below 1.71, Undervalued between 1.71 and 2.24, Fairly Valued between 3.31 and 2.24, Overvalued between 3.31 and 3.84, and Strongly Overvalued above 3.84. The current Forward PS of 2.08 falls within the Undervalued range.

15.37

P/OCF

Warner Music Group Corp. (WMG) has a current P/OCF of 15.37. The 5-year average P/OCF is 22.26. The thresholds are as follows: Strongly Undervalued below 9.52, Undervalued between 9.52 and 15.89, Fairly Valued between 28.63 and 15.89, Overvalued between 28.63 and 35.00, and Strongly Overvalued above 35.00. The current Forward P/OCF of 15.37 falls within the Undervalued range.

17.89

P/FCF

Warner Music Group Corp. (WMG) has a current P/FCF of 17.89. The 5-year average P/FCF is 27.82. The thresholds are as follows: Strongly Undervalued below 9.07, Undervalued between 9.07 and 18.44, Fairly Valued between 37.19 and 18.44, Overvalued between 37.19 and 46.56, and Strongly Overvalued above 46.56. The current Forward P/FCF of 17.89 falls within the Undervalued range.

Warner Music Group Corp (WMG) has a current Price-to-Book (P/B) ratio of 22.43. Compared to its 3-year average P/B ratio of 41.90 , the current P/B ratio is approximately -46.46% higher. Relative to its 5-year average P/B ratio of 165.96, the current P/B ratio is about -86.48% higher. Warner Music Group Corp (WMG) has a Forward Free Cash Flow (FCF) yield of approximately 3.71%. Compared to its 3-year average FCF yield of 3.95%, the current FCF yield is approximately -5.97% lower. Relative to its 5-year average FCF yield of 3.48% , the current FCF yield is about 6.74% lower.

22.48

P/B

Median3y

41.90

Median5y

165.96

3.71

FCF Yield

Median3y

3.95

Median5y

3.48

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

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of WMG decreased by 9.70% 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.

14.60%

1.63B → 1.87B

Revenue Growth

98.64%

2.94 → 5.84

Margin Expansion

-122.94%

-175.05 → 40.16

P/E Change

-9.70%

30.84 → 27.85

Mkt Cap Growth

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Frequently Asked Questions

Is Warner Music Group Corp (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 30.42 to 52.01 according to relative valuation methord.

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 16 2025?

As of Dec 16 2025, Warner Music Group Corp (WMG) has a P/B ratio of 22.43. This indicates that the market values WMG at 22.43 times its book value.

What is the current FCF Yield for Warner Music Group Corp (WMG) as of Dec 16 2025?

As of Dec 16 2025, Warner Music Group Corp (WMG) has a FCF Yield of 3.71%. This means that for every dollar of Warner Music Group Corp’s market capitalization, the company generates 3.71 cents in free cash flow.

What is the current Forward P/E ratio for Warner Music Group Corp (WMG) as of Dec 16 2025?

As of Dec 16 2025, Warner Music Group Corp (WMG) has a Forward P/E ratio of 17.82. This means the market is willing to pay $17.82 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 Dec 16 2025?

As of Dec 16 2025, Warner Music Group Corp (WMG) has a Forward P/S ratio of 2.08. This means the market is valuing WMG at $2.08 for every dollar of expected revenue over the next 12 months.

WMG Valuation