` Comparison: WMG, SPOT - Alpha Spread

WMG
vs
SPOT

Over the past 12 months, WMG has underperformed SPOT, delivering a return of -14% compared to the SPOT's +13% growth.

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WMG
SPOT
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Valuation Comparison

WMG Intrinsic Value
36.24 USD
Undervaluation 23%
Intrinsic Value
Price
SPOT Intrinsic Value
309.15 USD
Overvaluation 45%
Intrinsic Value
Price
Company Last Price Intrinsic Value DCF Value Relative Value Wall St Target
Warner Music Group Corp
NASDAQ:WMG
27.89 USD
Spotify Technology SA
NYSE:SPOT
560.97 USD
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Valuation Scenario:
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Base Case
Bull Case

Growth Comparison

Growth Over Time
WMG, SPOT

WMG
SPOT
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Revenue
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Company LTM Historical Growth Growth Streak % Positive Years Max Drawdown Volatility Forecasted Growth
3 Years 5 Years 10 Years 1 Year 3 Years
Warner Music Group Corp
Revenue
Spotify Technology SA
Revenue

All metrics are calculated based on data from the last 10 years.

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Profitability Comparison

Free Cash Flow
WMG, SPOT

WMG
SPOT
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Free Cash Flow
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Company LTM Average Historical Growth FCF Margin Conversion
3 Years 5 Years 3 Years 5 Years 10 Years
Warner Music Group Corp
NASDAQ:WMG
Spotify Technology SA
NYSE:SPOT
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What is Free Cash Flow?

Gross Margin

WMG
45.9%
SPOT
31.8%

Operating Margin

WMG
13.8%
SPOT
11.7%

Net Margin

WMG
5.4%
SPOT
8.3%

FCF Margin

WMG
5.1%
SPOT
17.3%

ROE

WMG
62%
SPOT
22.6%

ROA

WMG
3.8%
SPOT
11.1%

ROIC

WMG
8.1%
SPOT
39.9%

ROCE

WMG
17.1%
SPOT
26.5%

Solvency Comparison

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Balance Sheet Comparison
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Stocks Performance

Stocks Performance
WMG, SPOT

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Performance Gap
WMG, SPOT

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WMG
SPOT
Difference
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Performance By Year
WMG, SPOT

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WMG
SPOT
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