Stock AnalizWarner Music Group Corp. WMG
Services-Misc. Amusement & Recreation · IPO 2020 · data as of November 13, 2026
Warner Music Group Corp. (WMG) is a consumer discretionary company listed in the US with a market value of about $16.9B. In the twelve months to June 30, 2026 it had revenue of $7.3B and net income of $672M, a net margin of 9.2%.
Its overall Stock Analiz score is 1.8 out of 5 (weak). The strongest part is shareholder returns (4/5); the weakest is value (0/5).
Key numbers: a P/E of 25.8, a price to free cash flow of 20.2, 5-year revenue growth of 8% a year, a 5-year average ROIC of 12%. A discounted cash flow model with moderate assumptions puts its intrinsic value about 44% below the current price.
Score: 1.8 / 5
Checks passed
- 5-year revenue growth above 8% a year
- Profitable 5 years in a row
- ROE above 15%
- Positive free cash flow
- Interest covered more than 5 times
- Pays a dividend
- 20% to 100% of free cash flow returned to shareholders
- Dividend 3 years in a row
Checks not passed
- P/E below 25
- P/E below the industry median
- P/FCF below 20
- Price below intrinsic value (DCF, moderate assumptions)
- PEG below 1.5
- Revenue growth above 10% last year
- 3-year revenue growth above 10% a year
- Profit margin improving
Valuation
Growth and quality
Financials, last 10 years
| Fiscal year | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $7.3B | $6.7B | $6.4B | $6.0B | $5.9B | $5.3B | $4.5B | $4.5B | $4.0B | $3.6B | $3.2B |
| Net income | $672M | $365M | $435M | $430M | $551M | $304M | -$475M | $256M | $307M | $143M | $25M |
| Free cash flow | $836M | $539M | $638M | $560M | $607M | $545M | $378M | $296M | $351M | $491M | $300M |
| EPS (diluted) | $1.28 | $0.70 | — | — | — | — | — | — | — | — | — |
| Net margin | 9.2% | 5.4% | 6.8% | 7.1% | 9.3% | 5.7% | -10.6% | 5.7% | 7.7% | 4.0% | 0.8% |
| ROIC | — | 10.0% | 13.6% | 12.5% | 12.9% | 11.1% | -5.3% | 12.8% | 6.2% | 5.7% | 5.3% |
From the company’s 10-K and 10-Q filings with the SEC. TTM = trailing twelve months.
What analysts expect
The average 12-month price target from 17 analysts is $38.18, 18% above the current price; targets range from $30.00 to $46.00; the consensus rating is “Buy”; expected EPS is $1.79 for the fiscal year ending September 30, 2026.
Frequently asked questions
What is Warner Music Group’s P/E ratio?
About 25.8, based on the last twelve months of diluted earnings per share (forward P/E about 16.8).
Is Warner Music Group stock undervalued?
Our DCF model with moderate assumptions puts its intrinsic value about 44% below the current market value. A model is a range, not a promise; try your own assumptions in the DCF calculator.
Does Warner Music Group pay a dividend?
Yes. The dividend yield is about 2.48%, and it has paid dividends for 9 years in our data.
Is Warner Music Group a good stock to buy?
We do not give buy or sell advice. Warner Music Group scores 1.8 out of 5 on our five checks (value, growth, track record, financial health and shareholder returns); the checks above show why.
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Generated from SEC filings, analyst consensus estimates and market prices, rebuilt every day. Educational information, not investment advice.