Warner Music Group Corp
NASDAQ:WMG

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Warner Music Group Corp
NASDAQ:WMG
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Price: 31.27 USD -0.76% Market Closed
Market Cap: 16.3B USD
Section:
 

Relative Value

The Relative Value of one WMG stock under the Base Case scenario is 44.44 USD. Compared to the current market price of 31.27 USD, Warner Music Group Corp is Undervalued by 30%.

Relative Value is the estimated value of a stock based on various valuation multiples like P/E and EV/EBIT ratios. It offers a quick snapshot of a stock's valuation in relation to its peers and historical norms.

WMG Relative Value
Base Case
44.44 USD
Undervaluation 30%
Relative Value
Price
Worst Case
Base Case
Best Case

Valuation Multiples

2.4
P/S
P/S
Price to Sales
2.4
vs History
74
vs Industry
28
Median 3Y
2.6
Median 5Y
2.7
Industry
1.5
Forward
2.3
More Details
45.3
P/E
P/E
Price to Earnings
45.3
vs History
22
vs Industry
14
Median 3Y
37.2
Median 5Y
37.2
Industry
17.1
Forward
22.3
More Details
24.2
P/OCF
P/OCF
Price to OCF
24.2
vs History
38
vs Industry
18
Median 3Y
21.8
Median 5Y
23
Industry
11.1
More Details
76
P/FCFE
P/FCFE
Price to FCFE
76
vs History
7
vs Industry
11
Median 3Y
44.8
Median 5Y
44.9
Industry
15.3
More Details
25.2
P/B
P/B
Price to Book Value
25.2
vs History
90
vs Industry
2
Median 3Y
32.5
Median 5Y
55.9
Industry
1.8
More Details
3
EV/S
EV/S
Enterprise Value to Sales
3
vs History
74
vs Industry
24
Median 3Y
3.2
Median 5Y
3.2
Industry
1.6
Forward
2.9
More Details
6.6
EV/GP
EV/GP
Enterprise Value to Gross Profit
6.6
vs History
65
vs Industry
23
Median 3Y
6.7
Median 5Y
6.8
Industry
3.5
More Details
15.5
EV/EBITDA
EV/EBITDA
Enterprise Value to EBITDA
15.5
vs History
74
vs Industry
17
Median 3Y
16.2
Median 5Y
17.3
Industry
8.8
Forward
12.4
More Details
21.7
EV/EBIT
EV/EBIT
Enterprise Value to EBIT
21.7
vs History
65
vs Industry
16
Median 3Y
22.6
Median 5Y
23.4
Industry
12.4
Forward
17.2
More Details
29.9
EV/OCF
EV/OCF
Enterprise Value to OCF
29.9
vs History
36
vs Industry
14
Median 3Y
26.1
Median 5Y
27.6
Industry
10.4
More Details
59.1
EV/FCFF
EV/FCFF
Enterprise Value to FCFF
59.1
vs History
36
vs Industry
10
Median 3Y
42.8
Median 5Y
46.6
Industry
12.5
More Details
2.2
EV/IC
EV/IC
Enterprise Value to IC
2.2
vs History
85
vs Industry
24
Median 3Y
2.4
Median 5Y
2.6
Industry
1.5
More Details

Multiples Across Competitors

WMG Competitors Multiples
Warner Music Group Corp Competitors

All Multiples
P/S
P/E
EV/EBITDA
EV/EBIT
All Countries
All Countries
Close
Market Cap P/S P/E EV/EBITDA EV/EBIT
US
Warner Music Group Corp
NASDAQ:WMG
16.3B USD 2.4 45.3 15.5 21.7
US
Netflix Inc
NASDAQ:NFLX
375.2B USD 8.6 36 13.2 30.1
US
Walt Disney Co
NYSE:DIS
206.7B USD 2.2 16.7 12.3 17.1
LU
Spotify Technology SA
NYSE:SPOT
108.8B USD 5.5 66.5 40.8 43
US
Warner Bros Discovery Inc
NASDAQ:WBD
70.9B USD 1.9 146.2 5.1 57.3
NL
Universal Music Group NV
AEX:UMG
40.3B EUR 2.6 7.2 8.5 8.5
US
TKO Group Holdings Inc
NYSE:TKO
40.6B USD 9.3 177.3 29.9 42.8
US
Live Nation Entertainment Inc
NYSE:LYV
34.1B USD 1.4 105.8 17.4 25.6
CN
Tencent Music Entertainment Group
NYSE:TME
26.9B USD 5.9 17.4 18 18
US
Roku Inc
NASDAQ:ROKU
15.9B USD 3.5 -574.4 -170.3 -122.7
FR
Bollore SE
PAR:BOL
13.3B EUR 8.6 -7.8 -12.5 -11.9
P/E Multiple
Earnings Growth PEG
US
Warner Music Group Corp
NASDAQ:WMG
Average P/E: 68.7
45.3
40%
1.1
US
Netflix Inc
NASDAQ:NFLX
36
25%
1.4
US
Walt Disney Co
NYSE:DIS
16.7
6%
2.8
LU
Spotify Technology SA
NYSE:SPOT
66.5
42%
1.6
US
Warner Bros Discovery Inc
NASDAQ:WBD
146.2
N/A N/A
NL
Universal Music Group NV
AEX:UMG
7.2
2%
3.6
US
TKO Group Holdings Inc
NYSE:TKO
177.3
423%
0.4
US
Live Nation Entertainment Inc
NYSE:LYV
105.8
7%
15.1
CN
Tencent Music Entertainment Group
NYSE:TME
17.4
22%
0.8
US
Roku Inc
NASDAQ:ROKU
Negative Multiple: -574.4 N/A N/A
FR
Bollore SE
PAR:BOL
Negative Multiple: -7.8
-39%
N/A
EV/EBITDA Multiple
EBITDA Growth EV/EBITDA to Growth
US
Warner Music Group Corp
NASDAQ:WMG
Average EV/EBITDA: 17.8
15.5
15%
1
US
Netflix Inc
NASDAQ:NFLX
13.2
-7%
N/A
US
Walt Disney Co
NYSE:DIS
12.3
10%
1.2
LU
Spotify Technology SA
NYSE:SPOT
40.8
40%
1
US
Warner Bros Discovery Inc
NASDAQ:WBD
5.1
-25%
N/A
NL
Universal Music Group NV
AEX:UMG
8.5
16%
0.5
US
TKO Group Holdings Inc
NYSE:TKO
29.9
27%
1.1
US
Live Nation Entertainment Inc
NYSE:LYV
17.4
19%
0.9
CN
Tencent Music Entertainment Group
NYSE:TME
18
22%
0.8
US
Roku Inc
NASDAQ:ROKU
Negative Multiple: -170.3 N/A N/A
FR
Bollore SE
PAR:BOL
Negative Multiple: -12.5 N/A N/A
EV/EBIT Multiple
EBIT Growth EV/EBIT to Growth
US
Warner Music Group Corp
NASDAQ:WMG
Average EV/EBIT: 29.3
21.7
19%
1.1
US
Netflix Inc
NASDAQ:NFLX
30.1
25%
1.2
US
Walt Disney Co
NYSE:DIS
17.1
17%
1
LU
Spotify Technology SA
NYSE:SPOT
43
42%
1
US
Warner Bros Discovery Inc
NASDAQ:WBD
57.3
57%
1
NL
Universal Music Group NV
AEX:UMG
8.5
16%
0.5
US
TKO Group Holdings Inc
NYSE:TKO
42.8
34%
1.3
US
Live Nation Entertainment Inc
NYSE:LYV
25.6
14%
1.8
CN
Tencent Music Entertainment Group
NYSE:TME
18
23%
0.8
US
Roku Inc
NASDAQ:ROKU
Negative Multiple: -122.7 N/A N/A
FR
Bollore SE
PAR:BOL
Negative Multiple: -11.9 N/A N/A

See Also

Summary
WMG intrinsic value, competitors valuation, and company profile.
DCF Valuation
WMG stock valuation using Discount Cash Flow valuation method.
Relative Valuation
WMG stock valuation using valuation multiples.
Wall Street Estimates
WMG price targets and financial estimates made by Wall st analysts.
Profitability Analysis
Detailed analysis of the company's profitability.
Solvency Analysis
Analysis of the financial position and solvency of the company.
Financials
Income Statement, Balance Sheet, Cash Flow Statement.
Discount Rate
WMG stock discount rate: cost of equity and WACC.
Summary
DCF Valuation
Relative Valuation
Wall Street Estimates
Profitability Analysis
Solvency Analysis
Financials
Discount Rate
Discover More
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