Universal Music Group N.V.

OTCPK:UNVG.Y Stock Report

Market Cap: US$43.7b

Universal Music Group Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • 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 UNVG.Y when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: UNVG.Y ($11.89) is trading below our estimate of fair value ($13.71)

Significantly Below Fair Value: UNVG.Y is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for UNVG.Y?

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

The above table shows the Price to Earnings ratio for UNVG.Y. This is calculated by dividing UNVG.Y's market cap by their current earnings.
What is UNVG.Y's PE Ratio?
PE Ratio26.7x
Earnings€1.55b
Market Cap€41.26b

Price to Earnings Ratio vs Peers

How does UNVG.Y's PE Ratio compare to its peers?

The above table shows the PE ratio for UNVG.Y vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average95.1x
SPOT Spotify Technology
126.2x29.5%US$93.7b
FWON.K Formula One Group
72.7x20.0%US$20.0b
WMG Warner Music Group
31.6x18.6%US$17.1b
LYV Live Nation Entertainment
149.9x31.4%US$31.0b
UNVG.Y Universal Music Group
26.7x6.5%US$41.3b

Price-To-Earnings vs Peers: UNVG.Y is good value based on its Price-To-Earnings Ratio (26.7x) compared to the peer average (95.1x).

Price to Earnings Ratio vs Industry

How does UNVG.Y's PE Ratio compare vs other companies in the US Entertainment Industry?

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
IH iHuman
4.7xn/aUS$85.73m
RDBX Redbox Entertainment
1.2x-121.8%US$76.65m
GMM Global Mofy AI
0.7xn/aUS$11.91m
MSGM Motorsport Games
0.7xn/aUS$3.47m
UNVG.Y 26.7xIndustry Avg. 21.6xNo. of Companies6PE020406080100+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: UNVG.Y is expensive based on its Price-To-Earnings Ratio (26.7x) compared to the US Entertainment industry average (21.6x).

Price to Earnings Ratio vs Fair Ratio

What is UNVG.Y'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.

UNVG.Y PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26.7x
Fair PE Ratio22.9x

Price-To-Earnings vs Fair Ratio: UNVG.Y is expensive based on its Price-To-Earnings Ratio (26.7x) compared to the estimated Fair Price-To-Earnings Ratio (22.9x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

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