Warner Music Group Corp. (WMG) 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

-67.7%

$10.01

vs $31.01 price

Levered DCF

$7.52

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

1.72

Distress zone

Rating

B-

Overall 3 / 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	48.66×	37.71×	38.29×	21.9×	73.69×	-30.9×	60.24×	48.58×
P/B	27.32×	31.27×	52.75×	79.37×	707.93×	-232.67×	-53.15×	-45.27×
P/S	2.64×	2.52×	2.68×	2.04×	4.14×	3.28×	3.43×	3.78×
EV / EBITDA	21.16×	18.17×	18.31×	12.87×	28.42×	-297.41×	26.13×	20.72×
Gross margin	45.8%	47.8%	47.4%	48.0%	48.3%	47.7%	46.3%	45.8%
Operating margin	10.3%	12.8%	13.1%	12.1%	11.5%	-5.1%	8.0%	5.4%
Net margin	5.4%	6.8%	7.1%	9.3%	5.7%	-10.6%	5.7%	7.7%
Current ratio	0.66×	0.68×	0.68×	0.64×	0.6×	0.62×	0.6×	0.5×
Debt / equity	7.12×	8.28×	13.88×	26.4×	118.58×	-54.63×	-10.29×	-8.44×
Interest coverage	4.36×	5.11×	5.6×	5.71×	4.99×	-1.8×	2.51×	1.57×
Dividend yield	2.2%	2.2%	2.1%	2.6%	1.2%	2.3%	0.6%	6.1%
Payout ratio	104.9%	83.0%	79.1%	57.7%	87.2%	-72.4%	36.7%	301.3%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	56.4%	84.0%	140.1%	362.5%	980.6%	754.0%	-88.6%	-91.9%
Return on invested capital	9.2%	12.3%	11.3%	11.9%	10.0%	-6.1%	10.8%	5.2%
Return on assets	3.7%	4.8%	5.0%	7.0%	4.2%	-7.4%	4.3%	5.7%
Free cash flow yield	3.0%	3.9%	2.8%	3.4%	0.3%	2.3%	1.7%	2.2%
Earnings yield	2.1%	2.7%	2.7%	4.6%	1.4%	-3.2%	1.7%	2.0%
Enterprise value	$21.8B	$19.8B	$19.8B	$15.5B	$25.1B	$17.5B	$17.7B	$17.4B
Net debt / EBITDA	3.96×	3.3×	3.34×	2.85×	3.59×	-48.97×	3.47×	2.74×
Cash conversion cycle (days)	53	51	48	42	31	34	35	1