Universal Music Group N.V. (UMG.AS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+92.5%

€32.75

vs €17.01 price

Levered DCF

€15.81

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

-0.14

Distress zone

Rating

C+

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	26.46×	21.68×	37.41×	52.35×	50.57×	33.47×	69.72×	51.22×
P/B	8.97×	9.98×	15.85×	17.36×	22.13×	31.78×	22.73×	15.17×
P/S	3.26×	3.82×	4.23×	3.95×	5.28×	6.12×	9.47×	7.56×
EV / EBITDA	17.05×	13.79×	26.83×	31.84×	31.88×	23.1×	48.74×	35.78×
Gross margin	38.9%	43.0%	44.1%	44.4%	45.8%	47.3%	46.7%	48.4%
Operating margin	17.1%	15.0%	12.8%	15.5%	16.4%	16.9%	14.9%	14.9%
Net margin	12.3%	17.6%	11.3%	7.6%	10.4%	18.4%	13.6%	14.9%
Current ratio	0.63×	0.6×	0.65×	0.55×	0.62×	0.71×	0.67×	0.84×
Debt / equity	0.75×	0.71×	0.85×	1.14×	1.53×	2.47×	0.2×	0.2×
Interest coverage	9.19×	9.49×	12.02×	21.92×	27.33×	28.5×	48.55×	34.46×
Dividend yield	2.3%	2.1%	2.0%	2.0%	1.7%	0.6%	1.5%	2.2%
Payout ratio	62.2%	44.7%	73.8%	102.0%	88.6%	20.7%	103.1%	109.4%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	33.7%	46.1%	42.5%	33.3%	43.6%	95.4%	32.6%	29.9%
Return on invested capital	14.5%	11.6%	14.5%	22.0%	15.0%	13.3%	18.5%	14.9%
Return on assets	8.8%	11.7%	9.6%	6.7%	7.3%	11.8%	11.0%	10.6%
Free cash flow yield	3.9%	2.9%	3.4%	4.0%	2.4%	-0.2%	0.9%	1.4%
Earnings yield	3.8%	4.6%	2.7%	1.9%	2.0%	3.0%	1.4%	2.0%
Enterprise value	€44.1B	€47.8B	€49B	€43B	€47.4B	€47.9B	€68B	€45.8B
Net debt / EBITDA	1.3×	0.76×	1.15×	1.65×	1.69×	1.15×	0.2×	0.25×
Cash conversion cycle (days)	-129	83	80	73	74	77	-283	-277