Warner Music Group Corp. (WMG) is a publicly traded company in the Communication Services — Entertainment industry listed on NASDAQ. This overview shows the latest price, key valuation ratios, profitability metrics and financial-health indicators used by fundamental investors.
Warner Music Group Corp. (WMG), established in 1929 and based in New York City, functions as a prominent global entertainment enterprise primarily focused on music. Its operations span the United States, the United Kingdom, Germany, and numerous other international markets. The company's activities are organized into two distinct divisions: Recorded Music and Music Publishing. The Recorded Music division is dedicated to identifying and cultivating emerging musical talent.
Is Warner Music Group Corp. stock overvalued or undervalued in 2026?
Warner Music Group Corp. (WMG) trades at 25.2× earnings (P/E), above the median of the 81 communication companies over $2bn in Kaplio's universe. At its sector median (19.1×) $25 (-24%).
Kaplio overview: Warner Music Group Corp.
Market cap $17B · 52 weeks $24 – $35 (5% below the high) · P/E 25.2× · 2027 est. P/E 18.1× · Dividend 2.4% · 4 years rising · Next earnings November 19, 2026 · expected EPS $0.36 · Closing price, Nov 4 · accounts published Aug 5.
- Valuation: TTM P/E 25.2× (expensive).
- Business: EBITDA margin 16.6% (weak).
- Balance sheet: Net debt/EBITDA 4.0× (fragile).
- Earnings: 3 of 8 (disappointing).
Where would it trade at its usual multiples?
At its sector median (19.1×) $25 (-24%). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.
What matters in communication: 3 of 7 pass
- 3y revenue growth 4.3%, fails.
- EBITDA margin 16.6%, fails.
- FCF yield 3.2%, fails.
- Net debt / EBITDA 4.0×, fails.
- Capex / Revenue 2.1%, passes.
- Payout on FCF 71.1%, passes.
- EV/EBITDA vs own 5y 14.2×, passes.
Against its peers (reference peers) — Warner Music Group Corp.: P/E 25.2×; EV/EBITDA 14.2×; ROIC 12.6%; $17.0B. Tencent Music Entertainment Group (P/E 11.1×; EV/EBITDA 6.5×; ROIC 9.2%; $15.5B), Sirius XM Holdings Inc. (P/E 13.5×; EV/EBITDA 8.2×; ROIC 5.0%; $11.2B), Spotify Technology S.A. (P/E 39.0×; EV/EBITDA 29.2×; ROIC 22.8%; $129B).
Expensive or cheap against its last 6 years?
P/E at each close: today 25.2× · median 37.1× · minimum 18.4× · maximum 73.5× · cheap below 31.2× · expensive above 49.4×. It has been cheaper than today only 18% of the time over its last 6 years.
Dividend
fragile · Yield (last 12 months) 2.4% · $0.73 per share in 2025 · Years raising it 4 · paying since 2017 · 5-year growth +2% a year · Free cash flow coverage 1.5× (last three fiscal years) · With $1,000 invested today you'd collect $23.70 a year ($1.97 a month).
Profitability
| Return on Equity | 90.84% |
| Return on Invested Capital | 12.58% |
| Return on Assets | 6.26% |
| Gross Margin | 45.77% |
| Operating Margin | 14.31% |
| Net Margin | 9.20% |
Financial Health
| Debt / Equity | 5.76 |
| Current Ratio | 0.73 |
| Piotroski F-Score | 4 |
| Altman Z-Score | 1.72 |
Price Performance
| 1 month | +17.89% |
| 3 months | +23.34% |
| Year-to-date | +6.13% |
| 1 year | +9.15% |
| 3 years | -0.18% |
| 5 years | -32.45% |
Dividend History
Paid in the last 12 months: $0.77 per share in 4 payments.
| Date | Amount |
|---|---|
| August 20, 2026 | $0.20 |
| May 26, 2026 | $0.19 |
| February 18, 2026 | $0.19 |
| November 19, 2025 | $0.19 |
| August 20, 2025 | $0.19 |
| May 27, 2025 | $0.18 |
| February 24, 2025 | $0.18 |
| November 19, 2024 | $0.18 |
| August 27, 2024 | $0.18 |
| May 22, 2024 | $0.17 |
Amounts adjusted for stock splits.
Related companies: SIRI · SPOT · TME · NFLX · DIS · LYV · 0JVD.L
Explore sector: Communication Services · Entertainment
More sections of WMG: Financials · Valuation · Estimates · Technical · Ownership
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