Universal Music Group NV
AEX:UMG
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Universal Music Group NV
AEX:UMG
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NL |
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M
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Medistim ASA
SWB:MD1
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NO |
Intrinsic Value
The intrinsic value of Universal Music Group NV (UMG) under the Base Case is 20.44 EUR per share.
Compared with the current market price of 16 EUR, the stock appears
Undervalued by 22% .
The intrinsic value is calculated using the DCF method. The model assumes Universal Music Group's revenue grows about 8.2% a year over the next five years, below its past five-year pace of 11%. If revenue growth matched that past pace, the estimate would be about €24.
Do our valuations actually work? See backtest results .
Cheap or expensive for this stock?
This block shows whether today’s valuation is cheap or expensive compared with the stock’s own history, and what happened after similar valuations in the past.
We compare the gap between the stock’s price and our estimated value over time.
- Undervalued can still be historically expensive. The stock may trade below our estimated value, but usually offer an even bigger discount.
- Overvalued can still be historically cheap. The stock may trade above our estimated value, but usually carry an even higher premium.
Market expectations can differ from our model, which may not fully capture everything affecting the price. That is why some stocks regularly trade above our estimated value and others below it.
The scale and chart show how today’s valuation compares with the past. The cards summarize past returns and waiting times until the stock stopped being cheap or expensive. This can happen because the price changed, our estimated value changed, or both.
Only completed periods are included. These are past results, not forecasts. The usual historical range does not necessarily mean fair value.
Fundamental Analysis
What Universal Music Group Does
Universal Music Group is one of the world’s largest music companies. It signs and develops recording artists, owns and licenses music recordings and songs, and helps bring that music to listeners through streaming services, radio, video, live events, and physical products like vinyl and CDs. Its main customers are music fans, digital platforms, brands, and businesses that need legal rights to use music.
- Headquarters
- Netherlands NL
- Employees
- 9 636
- IPO date
- Sep 21, 2021
Universal Music Group has no economic moat
Listeners can choose competing labels’ music without leaving their streaming service, so Universal cannot lock in their attention. Its copyrights protect particular songs and recordings, but do not prevent Sony, Warner and independent labels from signing artists and offering competing music.
Read the full moat analysis
Earnings Waterfall
Universal Music Group NV
The intrinsic value for Universal Music Group NV (UMG) under the Base Case is 20.44 EUR.
Compared with the current market price of 16 EUR, the stock appears Undervalued by 22% .