Warner Music Group Corp
NASDAQ:WMG

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Warner Music Group Corp
NASDAQ:WMG
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Price: 31.16 USD 1.4% Market Closed
Market Cap: 16.1B USD
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Relative Value

The Relative Value of one WMG stock under the Base Case scenario is 44.71 USD. Compared to the current market price of 31.16 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
44.71 USD
Undervaluation 30%
Relative Value
Price
Worst Case
Base Case
Best Case

Valuation Multiples

2.5
P/S
P/S
Price to Sales
2.5
vs History
78
vs Industry
28
Median 3Y
2.7
Median 5Y
2.9
Industry
1.5
Forward
2.4
More Details
37.6
P/E
P/E
Price to Earnings
37.6
vs History
46
vs Industry
14
Median 3Y
38.2
Median 5Y
36.9
Industry
17.9
Forward
23.5
More Details
21.4
P/OCF
P/OCF
Price to OCF
21.4
vs History
78
vs Industry
17
Median 3Y
23
Median 5Y
24.2
Industry
11.5
More Details
52.8
P/FCFE
P/FCFE
Price to FCFE
52.8
vs History
32
vs Industry
10
Median 3Y
32.6
Median 5Y
45.7
Industry
15.7
More Details
31.2
P/B
P/B
Price to Book Value
31.2
vs History
82
vs Industry
1
Median 3Y
59.3
Median 5Y
62.5
Industry
1.7
More Details
3
EV/S
EV/S
Enterprise Value to Sales
3
vs History
78
vs Industry
24
Median 3Y
3.2
Median 5Y
3.5
Industry
1.6
Forward
2.9
More Details
6.3
EV/GP
EV/GP
Enterprise Value to Gross Profit
6.3
vs History
78
vs Industry
23
Median 3Y
6.8
Median 5Y
7.3
Industry
3.3
More Details
15
EV/EBITDA
EV/EBITDA
Enterprise Value to EBITDA
15
vs History
82
vs Industry
18
Median 3Y
17.7
Median 5Y
18.7
Industry
8.7
Forward
12.7
More Details
20.1
EV/EBIT
EV/EBIT
Enterprise Value to EBIT
20.1
vs History
67
vs Industry
16
Median 3Y
24.9
Median 5Y
24.1
Industry
12.2
Forward
17.5
More Details
25.8
EV/OCF
EV/OCF
Enterprise Value to OCF
25.8
vs History
76
vs Industry
13
Median 3Y
27.5
Median 5Y
28.8
Industry
10.6
More Details
43.1
EV/FCFF
EV/FCFF
Enterprise Value to FCFF
43.1
vs History
69
vs Industry
10
Median 3Y
43.8
Median 5Y
46.5
Industry
13.4
More Details
2.4
EV/IC
EV/IC
Enterprise Value to IC
2.4
vs History
83
vs Industry
23
Median 3Y
2.6
Median 5Y
2.8
Industry
1.4
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
16.1B USD 2.5 37.6 15 20.1
US
Netflix Inc
NASDAQ:NFLX
388.6B USD 10.3 49.9 15.8 40.8
US
Walt Disney Co
NYSE:DIS
207.6B USD 2.3 41.8 14.2 20.2
LU
Spotify Technology SA
NYSE:SPOT
93.1B USD 5.9 127.3 90.6 104.5
NL
Universal Music Group NV
AEX:UMG
44.5B EUR 3.9 28.7 29.3 29.3
US
Live Nation Entertainment Inc
NYSE:LYV
30.7B USD 1.3 133.3 17.2 24.6
US
Warner Bros Discovery Inc
NASDAQ:WBD
26.2B USD 0.7 -2.3 2.9 -158.9
US
TKO Group Holdings Inc
NYSE:TKO
24.5B USD 18.3 144.9 70.3 93
CN
Tencent Music Entertainment Group
NYSE:TME
20.2B USD 5.3 24.6 21.6 21.6
FR
Bollore SE
PAR:BOL
16.3B EUR 0.9 4.2 7.6 24.4
US
Endeavor Group Holdings Inc
NYSE:EDR
14.6B USD 1.6 -19.9 46.9 -76.1
P/E Multiple
Earnings Growth P/E to Growth
US
Warner Music Group Corp
NASDAQ:WMG
Average P/E: 65.8
37.6
116%
0.3
US
Netflix Inc
NASDAQ:NFLX
49.9
129%
0.4
US
Walt Disney Co
NYSE:DIS
41.8
378%
0.1
LU
Spotify Technology SA
NYSE:SPOT
127.3
N/A N/A
NL
Universal Music Group NV
AEX:UMG
28.7
70%
0.4
US
Live Nation Entertainment Inc
NYSE:LYV
133.3
132%
1
US
Warner Bros Discovery Inc
NASDAQ:WBD
Negative Multiple: -2.3 N/A N/A
US
TKO Group Holdings Inc
NYSE:TKO
144.9
185%
0.8
CN
Tencent Music Entertainment Group
NYSE:TME
24.6
116%
0.2
FR
Bollore SE
PAR:BOL
4.2
107%
0
US
Endeavor Group Holdings Inc
NYSE:EDR
Negative Multiple: -19.9
288%
N/A
EV/EBIT Multiple
EBIT Growth EV/EBIT to Growth
US
Warner Music Group Corp
NASDAQ:WMG
Average EV/EBIT: 42.1
20.1
47%
0.4
US
Netflix Inc
NASDAQ:NFLX
40.8
114%
0.4
US
Walt Disney Co
NYSE:DIS
20.2
101%
0.2
LU
Spotify Technology SA
NYSE:SPOT
104.5
N/A N/A
NL
Universal Music Group NV
AEX:UMG
29.3
86%
0.3
US
Live Nation Entertainment Inc
NYSE:LYV
24.6
60%
0.4
US
Warner Bros Discovery Inc
NASDAQ:WBD
Negative Multiple: -158.9 N/A N/A
US
TKO Group Holdings Inc
NYSE:TKO
93
220%
0.4
CN
Tencent Music Entertainment Group
NYSE:TME
21.6
129%
0.2
FR
Bollore SE
PAR:BOL
24.4
200%
0.1
US
Endeavor Group Holdings Inc
NYSE:EDR
Negative Multiple: -76.1
397%
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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