Valuation dashboard for Warner Music Group Corp. (WMG) with P/E 25.23, P/B 19.88, EV/EBITDA 14.2 and dividend yield 2.37%. DCF, Graham Number, EPS growth, peer multiples and dividend discount models plus sector comparison against other Communication Services companies.
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.
Where would it trade at its usual multiples?
Versus its usual multiples: expensive · Current P/E 25.2× · Multiples range: $24.60 · $24.60.
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.
Analysis Summary
Warner Music Group Corp. reported revenue of $6.71B in the most recent fiscal year, growing at a 5-year CAGR of 8.5%.
Trailing-twelve-month margins: gross margin 45.8%, operating margin 14.3%, net margin 9.2%.
At $32.55 (closing price, November 4, 2026), WMG trades at a P/E of 25.23 and an ROE of 90.84%. Market capitalisation stands at $17.0B, placing it among large-cap names.
Balance sheet quality for WMG: debt-to-equity ratio of 5.76, current ratio of 0.73 over the last 12 months. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Valuation Ratios
| P/E Ratio | 25.23 |
| Price / Book | 19.88 |
| EV / EBITDA | 14.2 |
| Dividend Yield | 2.37% |
Peer Comparison
| Symbol | Company | Market Cap | P/E | P/B | ROE |
|---|---|---|---|---|---|
| WMG | Warner Music Group Corp. | $17.0B | 25.23 | 19.88 | 90.8% |
| SIRI | Sirius XM Holdings Inc. | $11.2B | 13.47 | 0.93 | 7.6% |
| SPOT | Spotify Technology S.A. | $129.0B | 38.96 | 11.61 | 34.1% |
| TME | Tencent Music Entertainment Group | $15.5B | 11.08 | 1.27 | 11.2% |
| NFLX | Netflix, Inc. | $276.4B | 19.19 | 9.37 | 50.4% |
| DIS | The Walt Disney Company | $205.4B | 24.53 | 1.88 | 7.9% |
| WBD | Warner Bros. Discovery, Inc. | $77.6B | 2.37 | -9.2% | |
| LYV | Live Nation Entertainment, Inc. | $42.7B | 513.07 | 73.3% |
Price
| Price | $32.55 (closing price, November 4, 2026) |
| Market Cap | $17.0B |
| Exchange | NASDAQ |
| Country | US |
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% |
Related companies: SIRI · SPOT · TME · NFLX · DIS · LYV · 0JVD.L
Explore sector: Communication Services · Entertainment
More sections of WMG: Overview · Financials · Estimates · Technical · Ownership
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