# Warner Music Group Corp. (WMG) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Communication Services / Entertainment. Price $28.78, market value $15.1 billion.

## Valuation
- **P/E (trailing): 23.0×**. Warner Music Group Corp. trades at 23.0× trailing earnings. The Communication Services median in the September 2026 study was 21.1×. Forward P/E is 14.6×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 2.1×**. Each dollar of revenue is priced at 2.1×.
- **Price / book: 17.6×**. The shares trade at 17.6× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 13.1×**. Enterprise value is 13.1× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 5.6%**. Free cash flow equals 5.6% of the market value. Above 5% is generally attractive.
- **Earnings yield: 4.3%**. The inverse of the P/E: 4.3% 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.
- **Altman Z-score: 2.00**. A Z-score of 2.00 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 2.78%** ($0.76 per share, trailing). Warner Music Group Corp. yields 2.78%, 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 $36.88 (+28% 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): -10.7%** (YTD -5.0%, 3-mo -3.8%). The shares are down 10.7% over twelve months including dividends.
- **From 52-week high: -18.7%** (23.3% above the low). Trading 19% 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): 59**. An RSI of 59 is neutral.
- **Beta (1 yr): 0.52** (volatility 34%). Beta of 0.52 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.