Universal Music Group

Global Connectivity And Streaming Will Spur Expansion While Facing Headwinds

AnalystHighTarget

Not Invested

Community Contributor

Published

03 Jun 25

Updated

12 Dec 25

n/a

AnalystHighTarget's Fair Value

n/a

-10.4%

3.2%

-10.4%

3.2%

You can edit this narrative until Dec 13 5:10 AM. Then, changes will post as Updates.

Author's Valuation

€38.4843.2% undervalued

AnalystHighTarget Fair Value

Narrative

Updates1

Shared on 12 Dec 25

Fair value Increased 3.11%

UMG: AI Licensing Deals Will Unlock New High-Margin Revenue Streams

Analysts have modestly raised their price target on Universal Music Group, reflecting incremental optimism around slightly faster expected revenue growth and higher future earnings multiples that more than offset a small downward revision to projected profit margins. What's in the News Universal Music and Warner Music are reportedly nearing landmark AI licensing deals with several generative AI startups, potentially securing new monetization and usage safeguards around their catalogs in the coming weeks (Financial Times).

AnalystHighTarget Fair Value

€38.48

43.2% undervalued

Future estimation in

% p.a.

Decrease

Increase

Current revenue growth rate

5.92%

Entertainment revenue growth rate

0.42%

Risk Level (Discount Rate)

Our default considers factors like the company's size, volatility, profitablity and country of operation.

Decrease

Increase

Current discount rate

7.25%

Calculation

€2.25b

Earnings '28

39.03x

PE Ratio '28

€87.74b

Market Cap '28

€87.74b

Market Cap '28

1.85b

No. shares '28

€47.47

Share Price '28

€47.47 Share Price '28

Discounted to 2025 @ 7.25% p.a.

€38.47

Fair Value '25