Warner Music Group Corp.

WBAG:WMG Stock Report

Market Cap: €15.6b

Warner Music Group Valuation

Is WMG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of WMG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WMG (€29.89) is trading below our estimate of fair value (€43.53)

Significantly Below Fair Value: WMG is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for WMG?

Key metric: As WMG is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for WMG. This is calculated by dividing WMG's market cap by their current earnings.
What is WMG's PE Ratio?
PE Ratio37.8x
EarningsUS$429.00m
Market CapUS$16.20b

Price to Earnings Ratio vs Peers

How does WMG's PE Ratio compare to its peers?

The above table shows the PE ratio for WMG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average80.5x
BOL Bolloré
105.9x32.7%€16.3b
EDR Endeavor Group Holdings
108.8x53.4%US$14.5b
TME Tencent Music Entertainment Group
22.7x15.2%US$18.6b
FWON.K Formula One Group
84.7x18.0%US$22.8b
WMG Warner Music Group
37.8x20.7%€16.2b

Price-To-Earnings vs Peers: WMG is good value based on its Price-To-Earnings Ratio (37.8x) compared to the peer average (79.9x).

Price to Earnings Ratio vs Industry

How does WMG's PE Ratio compare vs other companies in the European Entertainment Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
WMG 37.8xIndustry Avg. 12.3xNo. of Companies12PE01224364860+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: WMG is expensive based on its Price-To-Earnings Ratio (37.8x) compared to the European Entertainment industry average (13.3x).

Price to Earnings Ratio vs Fair Ratio

What is WMG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

WMG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio37.8x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate WMG's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst WMG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€29.89
€34.79
+16.4%
14.3%€42.46€22.19n/a19
Dec ’25€30.52
€33.97
+11.3%
14.3%€41.65€21.77n/a19
Nov ’25€29.72
€33.07
+11.3%
15.1%€40.41€21.13n/a19
Oct ’25€28.47
€32.69
+14.8%
14.4%€39.72€20.76n/a19
Sep ’25€25.56
€32.60
+27.5%
14.0%€40.09€20.96n/a18
Aug ’25€27.27
€34.96
+28.2%
12.6%€40.77€21.31n/a18
Jul ’25€28.23
€35.62
+26.2%
13.8%€42.04€19.62n/a16
Jun ’25€27.05
€36.35
+34.4%
15.2%€48.27€19.49n/a18
May ’25€31.14
€36.93
+18.6%
15.3%€48.85€19.73n/a18
Apr ’25€30.60
€35.86
+17.2%
15.5%€47.50€19.18n/a18
Mar ’25€32.22
€36.62
+13.6%
15.2%€48.26€19.49n/a19
Feb ’25€33.60
€34.46
+2.6%
18.0%€48.13€14.25n/a19
Jan ’25€32.17
€33.63
+4.5%
17.2%€47.63€14.11n/a19
Dec ’24€30.65
€33.63
+9.7%
17.1%€47.78€14.15€30.5219
Nov ’24€29.61
€34.18
+15.4%
18.0%€49.12€14.55€29.7219
Oct ’24€29.66
€34.19
+15.3%
18.2%€49.50€14.66€28.4719
Sep ’24€30.92
€32.67
+5.7%
18.4%€47.82€14.16€25.5620
Aug ’24€28.80
€29.11
+1.1%
19.5%€47.01€13.92€27.2722
Jul ’24€24.01
€29.22
+21.7%
20.4%€47.85€12.88€28.2321
Jun ’24€23.11
€30.55
+32.2%
20.3%€48.29€13.00€27.0520
May ’24€27.44
€33.44
+21.9%
18.4%€47.40€12.76€31.1419
Apr ’24€30.54
€34.33
+12.4%
18.1%€47.87€12.89€30.6020
Mar ’24€29.39
€34.68
+18.0%
18.2%€48.41€13.03€32.2220
Feb ’24€33.52
€33.51
-0.03%
19.2%€47.94€12.91€33.6020
Jan ’24€32.77
€32.92
+0.4%
21.5%€48.97€10.36€32.1720
Dec ’23€32.86
€32.36
-1.5%
22.6%€49.95€10.57€30.6519

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/19 16:35
End of Day Share Price 2024/12/19 00:00
Earnings2024/09/30
Annual Earnings2024/09/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Warner Music Group Corp. is covered by 34 analysts. 17 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Hamilton FaberAtlantic Equities LLP
Ishan MajumdarBaptista Research
Kannan VenkateshwarBarclays