NASDAQ
WMG
Last Price
US $27.07
KEY FIGURES
MKT CAP
$14.1B
EPS
TTM
$0.87
PEG
TTM
N/M
P/E
TTM
31.01x
P/S
TTM
2.10x
YIELD
2.82%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
67.11%
Return on equity
ROIC: 10.99%
Valuation History
31.0X
Price to Earnings
EV/EBITDA: 14.6X
Cash flow
Profit margin
8.49%
(FY vs FY)
EBITDA Y/Y
-
(FY vs FY)
Cash flow Y/Y
9.78%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $27.07
-61.73%
Default assumptions
EBITDA Multiple
Fair Value
Market $27.07
-73.66%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial risk - Cash flow debt coverage.
Warner Music Group Corp. cash flow to debt ratio of 14.71% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.
Financial risk - Healthy cash flow growth.
Warner Music Group Corp.'s free cash flow has decreased -15.52% from $638.00M last year to $539.00M, signaling decreasing performance
Financial risk - Healthy debt to equity ratio.
Warner Music Group Corp.'s debt to equity ratio is 6.70, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial stability - Healthy debt to equity ratio development.
Warner Music Group Corp.'s debt has decreased relative to shareholder equity from 8.28 last year to 6.70 today, signaling strengthened financials
Financial risk - Net debt/EBITDA.
Warner Music Group Corp. has a net debt to EBITDA ratio of 3.66x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk
Financial stability - ICR.
Warner Music Group Corp.'s interest coverage ratio of 5.38 indicates that earnings with good margin can cover interest payments on company debt
Financial risk - Profit margin growth.
Warner Music Group Corp.'s profit margin has decreased (-6.34%) in the last year from 6.77% to 6.34%, signaling decreasing performance
Financial risk - Short term assets vs short term liabilities.
Warner Music Group Corp.'s short-term liabilities of $4.20G exceed its short-term assets of $2.77G, signaling financial risk
Decreasing performance - ROA.
Warner Music Group Corp.'s return on assets of 4.26% is lower than the 5.00% threshold, indicating inefficient asset utilization
Increasing performance - Absolute return on equity.
Warner Music Group Corp.'s return on equity of 67.11%, is higher than 15.00%, indicating good performance
Increasing performance - Earnings quality.
Warner Music Group Corp.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Warner Music Group Corp. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Warner Music Group Corp. has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Warner Music Group Corp. has a free cash flow yield of 3.83%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Decreasing performance - Healthy earnings growth.
Warner Music Group Corp.'s yearly earnings has decreased -16.09% since last year from $435.00M to $365.00M, signaling decreasing performance
Increasing performance - Healthy revenue growth.
Warner Music Group Corp.'s yearly revenue has increased 4.37% since last year from $6.43G to $6.71G, signaling increasing performance
Increasing performance - ROIC.
ROIC 10.99% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.
Increasing performance - 3-year revenue CAGR.
Warner Music Group Corp.'s 3-year revenue CAGR of 4.25% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Warner Music Group Corp. had revenue growth in 5.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Warner Music Group Corp. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Warner Music Group Corp. is overvalued relative to its fair value price of 10.36 based on Discounted Cash Flow model
Overvalued - Earnings yield.
Warner Music Group Corp. has an earnings yield of 3.23%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings
Overvalued - EBITDA valuation.
Warner Music Group Corp. is overvalued relative to its fair value price of 7.13 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Warner Music Group Corp. has an EV/EBITDA ratio of 14.56x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Overvalued - PEG ratio value.
Warner Music Group Corp. has a PEG-ratio over 1 which is considered overvalued
Overvalued - P/B ratio.
Warner Music Group Corp. has a price-to-book ratio of 18.96x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value
Undervalued - P/S ratio.
Warner Music Group Corp. has a price-to-sales ratio of 1.97x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue