
Warner Music Group Corp
NASDAQ:WMG

Intrinsic Value
The intrinsic value of one
WMG
stock under the Base Case scenario is
34.44
USD.
Compared to the current market price of 31.14 USD,
Warner Music Group Corp
is
Undervalued by 10%.
The Intrinsic Value is calculated as the average of DCF and Relative values:

Valuation History
Warner Music Group Corp
Fundamental Analysis

WMG’s heavy reliance on third-party streaming services exposes it to unfavorable royalty negotiations and sudden shifts in platform strategy, creating potential revenue volatility if major streaming partners change terms or distribution strategies.
WMG’s broad catalog of iconic artists and its global reach position it to benefit from continued growth in digital music consumption, generating stable, recurring licensing royalties across multiple geographies.

Revenue & Expenses Breakdown
Warner Music Group Corp
Balance Sheet Decomposition
Warner Music Group Corp
Current Assets | 2.7B |
Cash & Short-Term Investments | 802m |
Receivables | 1.2B |
Other Current Assets | 713m |
Non-Current Assets | 6.4B |
PP&E | 712m |
Intangibles | 4.5B |
Other Non-Current Assets | 1.2B |
Free Cash Flow Analysis
Warner Music Group Corp
USD | |
Free Cash Flow | USD |
Earnings Waterfall
Warner Music Group Corp
Revenue
|
6.3B
USD
|
Cost of Revenue
|
-3.4B
USD
|
Gross Profit
|
3B
USD
|
Operating Expenses
|
-2.1B
USD
|
Operating Income
|
872m
USD
|
Other Expenses
|
-367m
USD
|
Net Income
|
505m
USD
|
WMG Profitability Score
Profitability Due Diligence
Warner Music Group Corp's profitability score is 62/100. The higher the profitability score, the more profitable the company is.

Score
Warner Music Group Corp's profitability score is 62/100. The higher the profitability score, the more profitable the company is.
WMG Solvency Score
Solvency Due Diligence
Warner Music Group Corp's solvency score is 27/100. The higher the solvency score, the more solvent the company is.

Score
Warner Music Group Corp's solvency score is 27/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
WMG Price Targets Summary
Warner Music Group Corp
According to Wall Street analysts, the average 1-year price target for
WMG
is 36.67 USD
with a low forecast of 23.23 USD and a high forecast of 46.2 USD.
Dividends
Current shareholder yield for WMG is
.
Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?
The intrinsic value of one
WMG
stock under the Base Case scenario is
34.44
USD.
Compared to the current market price of 31.14 USD,
Warner Music Group Corp
is
Undervalued by 10%.