Warner Music Group (WMG) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Warner Music Group stock (WMG) is currently trading at $23.89. Warner Music Group PE ratio is 41.49. Warner Music Group PS ratio (Price-to-Sales) is 1.79. Analyst consensus price target for WMG is $36.41. WallStSmart rates WMG as Hold.
- WMG PE ratio analysis and historical PE chart
- WMG PS ratio (Price-to-Sales) history and trend
- WMG intrinsic value — DCF, Graham Number, EPV models
- WMG stock price prediction 2025 2026 2027 2028 2029 2030
- WMG fair value vs current price
- WMG insider transactions and insider buying
- Is WMG undervalued or overvalued?
- Warner Music Group financial analysis — revenue, earnings, cash flow
- WMG Piotroski F-Score and Altman Z-Score
- WMG analyst price target and Smart Rating
Warner Music Group
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WMG Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Warner Music Group (WMG)
WMG trades 668% above its Graham fair value of $3.88, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Warner Music Group (WMG) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, peg ratio, return on equity. Concerns around price/book and eps growth. Fundamentals are solid but monitor weak areas for improvement.
Warner Music Group (WMG) Key Strengths (5)
Growing significantly faster than its price suggests
Every $100 of shareholder equity generates $40 in profit
105.06% of shares held by major funds and institutions
Large-cap company with substantial market presence
Paying $1.79 for every $1 of annual revenue
Supporting Valuation Data
Warner Music Group (WMG) Areas to Watch (5)
Earnings declining -25.90%, profits shrinking
Very expensive at 17.3x book value
Very thin margins, barely profitable
Decent operational efficiency, solid but not exceptional
Solid revenue growth at 10.40% per year
Supporting Valuation Data
Warner Music Group (WMG) Detailed Analysis Report
Overall Assessment
This company scores 61/100 in our Smart Analysis, earning a C+ grade. Out of 10 metrics analyzed, 5 register as strengths (avg 9.4/10) while 5 fall into concern territory (avg 3.2/10). All four categories (Growth, Profitability, Valuation, and Quality) show healthy scores, indicating broadly sound fundamentals.
The Bull Case
The strongest argument centers on PEG Ratio, Return on Equity, Institutional Own.. Valuation metrics including PEG Ratio (0.63), Price/Sales (1.79) suggest the stock is attractively priced. Profitability is solid with Return on Equity at 39.80%.
The Bear Case
The primary concerns are EPS Growth, Price/Book, Profit Margin. Some valuation metrics including Price/Book (17.34) suggest expensive pricing. Growth concerns include Revenue Growth at 10.40%, EPS Growth at -25.90%, which may limit upside. Profitability pressure is visible in Operating Margin at 17.80%, Profit Margin at 4.43%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether EPS Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 39.80% currently healthy but needing to be sustained. Third, growth sustainability, with Revenue Growth at 10.40% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. Strengths and concerns are roughly balanced. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (PEG Ratio, Return on Equity) and negatives (EPS Growth, Price/Book). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
WMG Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
WMG's Price-to-Sales ratio of 1.79x trades 83% above its historical average of 0.98x (91th percentile), historically expensive. The current valuation is 19% below its historical high of 2.21x set in Mar 2026, and 209% above its historical low of 0.58x in Sep 2022. Over the past 12 months, the PS ratio has expanded from ~0.7x, reflecting growing market expectations outpacing revenue growth.
WallStSmart Analysis Synopsis
Data-driven financial summary for Warner Music Group (WMG) · COMMUNICATION SERVICES › ENTERTAINMENT
The Big Picture
Warner Music Group is a mature, profitable business with steady cash generation. Revenue reached 6.9B with 10% growth year-over-year. Profit margins are strong at 443.0%, reflecting pricing power and operational efficiency.
Key Findings
ROE of 3980.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Profit margin of 443.0% and operating margin of 17.8% demonstrate strong pricing power and operational efficiency.
What to Watch Next
Dividend sustainability with a current yield of 3.1%. Watch payout ratio and free cash flow coverage.
Sector dynamics: monitor ENTERTAINMENT industry trends, competitive moves, and regulatory changes that could impact Warner Music Group.
Bottom Line
Warner Music Group is a well-established business delivering consistent profitability with 443.0% margins. The growth phase may be slowing, but strong cash generation and operational efficiency make it suitable for investors seeking reliability over excitement.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Warner Music Group(WMG)
NASDAQ
COMMUNICATION SERVICES
ENTERTAINMENT
USA
Warner Music Group Corp.