# Warner Music Group Corp. (WMG) fundamentals

Data as of 2026-11-04. NASDAQ, United States. Sector: Communication Services / Entertainment. Price $31.13, market value $16.3 billion.

## Valuation
- **P/E (trailing): 24.7×**. Warner Music Group Corp. trades at 24.7× trailing earnings. The Communication Services median in the September 2026 study was 21.1×. Forward P/E is 15.8×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 2.2×**. Each dollar of revenue is priced at 2.2×.
- **Price / book: 19.1×**. The shares trade at 19.1× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 14.0×**. Enterprise value is 14.0× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 5.1%**. Free cash flow equals 5.1% of the market value. Above 5% is generally attractive.
- **Earnings yield: 4.0%**. The inverse of the P/E: 4.0% of the price is earned each year.

## Profitability
- **Operating margin: 13.7%**. 13.7% of revenue is left after running the business.
- **Net margin: 5.4%**. 5.4% of each dollar of sales reaches the bottom line.
- **Return on equity: 56.4%**. A 56.4% return on equity is extremely high; check whether buybacks or debt have shrunk the equity base, which flatters the ratio.
- **Return on invested capital: 18.9%**. Return on all capital, debt included, is 18.9%: comfortably above what that capital costs.
- **Return on assets: 6.8%**. Each dollar of assets produces 6.8% of profit.

## Growth
- **Revenue growth (1 yr): 4.4%** (3-yr 4.3%/yr, 5-yr 8.5%/yr). Revenue grew 4.4% over the last year, against 8.5% a year compounded over five years: growth is slowing.
- **Free-cash-flow growth (3 yr): -3.9%/yr**. Free cash flow has compounded at -3.9% a year over three years.

## Financial health
- **Debt to equity: 6.28**. Debt is 6.28 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 2.5×**. It would take 2.5 years of operating earnings to repay net borrowings, within the comfortable range.
- **Current ratio: 0.66** (quick 0.66). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 1.91**. A Z-score of 1.91 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 2.57%** ($0.76 per share, trailing). Warner Music Group Corp. yields 2.57%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 105%** (48% of free cash flow). The dividend exceeds earnings (105% payout), though free cash flow still covers it.
- **Consecutive years of increases: 6**. 6 straight years of increases.
- **Dividend growth (5 yr): 25.3%/yr** (1-yr 5.7%). The dividend has compounded at 25.3% a year over five years, doubling roughly every 3 years at that pace.

## Analyst view
- **Analyst consensus: buy** (17 analysts). 17 analysts cover Warner Music Group Corp.; the consensus is buy, with an average price target of $38.00 (+22% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -1.3%** (YTD 2.2%, 3-mo 23.4%). The shares are down 1.3% over twelve months including dividends.
- **From 52-week high: -12.1%** (33.4% above the low). Trading 12% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 61**. An RSI of 61 is neutral.
- **Beta (1 yr): 0.44** (volatility 35%). Beta of 0.44 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=WMG · Page: https://foliofundamentals.com/stocks/wmg

Not investment advice.