Warner Music Group Corp. (WMG) Financial Ratios
24 years of historical data (2002–2025) · Communication Services · Entertainment
EV/EBITDA
↓
17.24
↓-10% vs avg
5yr avg: 19.17
30Y Low14.7·High27.5
P/FCF
↓
29.41
↓-68% vs avg
5yr avg: 93.28
30Y Low25.4·High43.4
P/B Ratio
↓
20.81
↓-84% vs avg
5yr avg: 126.78
30Y Low23.4·High71.8
ROE
↓
51.0%
↑-100% vs avg
5yr avg: 12317.7%
30Y Low-201%·High144%
Debt/EBITDA
↓
3.99
+3% vs avg
5yr avg: 3.87
30Y Low3.7·High13.8
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
WMG Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Warner Music Group Corp. trades at 43.4x earnings, roughly in line with its 5-year average of 44.0x, sitting at the 60th percentile of its historical range. Compared to the Communication Services sector median P/E of 15.2x, the stock trades at a premium of 184%. On a free-cash-flow basis, the stock trades at 29.4x P/FCF, 68% below the 5-year average of 93.3x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $15.9B | $17.7B | $16.2B | $16.2B | $12.1B | $21.9B | $14.7B | — | — | — | — |
| Enterprise Value | $19.9B | $21.8B | $19.8B | $19.8B | $15.5B | $25.1B | $17.5B | — | — | — | — |
| P/E Ratio → | 43.36 | 48.66 | 37.26 | 38.29 | 21.90 | 73.69 | — | — | — | — | — |
| P/S Ratio | 2.36 | 2.64 | 2.52 | 2.68 | 2.04 | 4.14 | 3.28 | — | — | — | — |
| P/B Ratio | 20.81 | 23.35 | 24.00 | 37.66 | 71.81 | 477.08 | — | — | — | — | — |
| P/FCF | 29.41 | 32.80 | 25.39 | 36.31 | 29.00 | 342.90 | 43.37 | — | — | — | — |
| P/OCF | 23.38 | 26.07 | 21.48 | 23.57 | 16.26 | 34.40 | 31.66 | — | — | — | — |
P/E links to full P/E history page with 30-year chart
WMG EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Warner Music Group Corp.'s enterprise value stands at 17.2x EBITDA, 10% below its 5-year average of 19.2x. The Communication Services sector median is 8.7x, placing the stock at a 98% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.24 | 3.08 | 3.28 | 2.62 | 4.74 | 3.93 | — | — | — | — |
| EV / EBITDA | 17.24 | 18.82 | 17.21 | 17.66 | 14.71 | 27.46 | 548.35 | — | — | — | — |
| EV / EBIT | 28.71 | 33.37 | 25.97 | 26.42 | 17.91 | 43.47 | — | — | — | — | — |
| EV / FCF | — | 40.36 | 31.02 | 44.42 | 37.24 | 392.54 | 51.91 | — | — | — | — |
WMG Profitability
Margins and return-on-capital ratios measuring operating efficiency
Warner Music Group Corp. earns an operating margin of 10.3%. Operating margins have compressed from 13.1% to 10.3% over the past 3 years, signaling potential cost pressures or competitive headwinds. Return on equity of 51.0% is exceptionally high. ROIC of 11.4% represents solid returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 45.8% | 45.8% | 47.8% | 47.4% | 48.0% | 48.3% | 47.7% | 46.3% | 45.8% | 46.0% | 47.4% |
| Operating Margin | 10.3% | 10.3% | 12.8% | 13.1% | 12.1% | 11.5% | -5.1% | 8.0% | 5.4% | 6.2% | 6.6% |
| Net Profit Margin | 5.4% | 5.4% | 6.8% | 7.1% | 9.3% | 5.7% | -10.6% | 5.7% | 7.7% | 4.0% | 0.8% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 51.0% | 51.0% | 78.7% | 143.8% | 515.0% | 60800.0% | — | — | — | 55.2% | 11.1% |
| ROA | 3.8% | 3.8% | 4.9% | 5.3% | 7.3% | 4.5% | -7.6% | 4.5% | 5.6% | 2.6% | 0.5% |
| ROIC | 11.4% | 11.4% | 14.8% | 15.5% | 15.7% | 15.1% | -7.0% | 13.1% | 7.3% | 6.5% | 5.7% |
| ROCE | 12.8% | 12.8% | 16.0% | 16.7% | 16.8% | 15.7% | -6.6% | 11.5% | 6.6% | 6.2% | 5.9% |
WMG Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Warner Music Group Corp. carries a Debt/EBITDA ratio of 4.0x, which is moderately leveraged (15% above the sector average of 3.5x). Net debt stands at $4.1B ($4.6B total debt minus $532M cash). Interest coverage of 4.1x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 6.09 | 6.09 | 6.35 | 9.91 | 23.89 | 79.91 | — | — | — | 9.13 | 13.23 |
| Debt / EBITDA | 3.99 | 3.99 | 3.73 | 3.80 | 3.81 | 4.02 | 107.56 | 4.76 | 5.90 | 5.94 | 5.48 |
| Net Debt / Equity | — | 5.38 | 5.32 | 8.42 | 20.41 | 69.07 | — | — | — | 7.03 | 11.52 |
| Net Debt / EBITDA | 3.53 | 3.53 | 3.12 | 3.23 | 3.26 | 3.47 | 90.28 | 3.77 | 4.82 | 4.58 | 4.77 |
| Debt / FCF | — | 7.56 | 5.63 | 8.11 | 8.24 | 49.64 | 8.55 | 9.24 | 6.84 | 4.56 | 8.80 |
| Interest Coverage | 4.10 | 4.10 | 4.73 | 5.32 | 6.92 | 4.74 | -2.52 | 2.88 | 4.20 | 0.99 | 1.24 |
WMG Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.66x is below 1.0, meaning current liabilities exceed current assets.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.66 | 0.66 | 0.68 | 0.68 | 0.64 | 0.60 | 0.62 | 0.60 | 0.50 | 0.61 | 0.49 |
| Quick Ratio | 0.64 | 0.64 | 0.65 | 0.64 | 0.60 | 0.57 | 0.59 | 0.57 | 0.48 | 0.59 | 0.47 |
| Cash Ratio | 0.13 | 0.13 | 0.18 | 0.18 | 0.17 | 0.16 | 0.20 | 0.22 | 0.22 | 0.31 | 0.19 |
| Asset Turnover | — | 0.68 | 0.70 | 0.71 | 0.76 | 0.74 | 0.70 | 0.74 | 0.75 | 0.63 | 0.61 |
| Inventory Turnover | 58.58 | 58.58 | 33.89 | 25.21 | 28.52 | 27.70 | 29.53 | 32.45 | 51.69 | 49.51 | 41.63 |
| Days Sales Outstanding | — | 72.92 | 71.28 | 67.72 | 60.68 | 57.77 | 63.06 | 63.21 | 40.74 | 41.24 | 36.99 |
WMG Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Warner Music Group Corp. returns 2.5% to shareholders annually — split between a 2.4% dividend yield and 0.1% buyback yield. The payout ratio exceeds 100% at 104.9%, meaning the company is paying out more than it earns — this level is unsustainable long-term without earnings recovery. The earnings yield of 2.3% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.4% | 2.2% | 2.2% | 2.1% | 2.6% | 1.2% | 2.3% | — | — | — | — |
| Payout Ratio | 104.9% | 104.9% | 83.0% | 79.1% | 57.7% | 87.2% | — | 36.7% | 301.3% | 58.7% | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.3% | 2.1% | 2.7% | 2.6% | 4.6% | 1.4% | — | — | — | — | — |
| FCF Yield | 3.4% | 3.0% | 3.9% | 2.8% | 3.4% | 0.3% | 2.3% | — | — | — | — |
| Buyback Yield | 0.1% | 0.1% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — | — | — |
| Total Shareholder Yield | 2.5% | 2.3% | 2.3% | 2.1% | 2.7% | 1.2% | 2.3% | — | — | — | — |
| Shares Outstanding | — | $519M | $518M | $516M | $520M | $513M | $510M | $510M | $502M | $502M | $502M |
Peer Comparison
Compare WMG with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 WMGYou | $16B | 43.4 | 17.2 | 29.4 | 45.8% | 10.3% | 51.0% | 11.4% | 4.0 |
 SONY | $124B | 17.2 | 11.4 | 11.5 | 28.4% | 10.9% | 14.0% | 10.7% | 2.3 |
 LYV | $39B | -699.3 | 20.0 | 116.9 | 23.0% | 5.9% | 26.4% | 19.7% | 5.6 |
 MMYT | $4B | 59.6 | 28.3 | 25.5 | 72.0% | 12.3% | 8.2% | 9.2% | 1.6 |
 SPOT | $88B | 34.5 | 31.2 | 26.0 | 32.0% | 12.8% | 31.9% | 40.5% | 1.0 |
 AAPL | $4.2T | 38.5 | 29.7 | 42.7 | 46.9% | 32.0% | 171.4% | 67.4% | 0.8 |
 AMZN | $3.0T | 38.3 | 20.7 | 384.3 | 50.3% | 11.2% | 22.3% | 14.7% | 1.0 |
 GOOGL | $4.8T | 36.8 | 32.2 | 65.7 | 59.7% | 32.1% | 35.7% | 25.1% | 0.4 |
 IHRT | $911M | -1.9 | 19.7 | 83.5 | — | -0.5% | — | -0.4% | 17.1 |
 RBLX | $31B | -28.4 | — | 23.2 | 78.1% | -25.2% | -365.0% | -87.7% | — |
 META | $1.6T | 26.1 | 15.7 | 33.7 | 82.0% | 41.4% | 30.2% | 27.6% | 0.8 |
| Communication Services Median | — | 15.2 | 8.7 | 11.6 | 49.1% | 1.0% | 2.4% | 3.3% | 3.5 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonWMG — Frequently Asked Questions
Quick answers to the most common questions about buying WMG stock.
What is Warner Music Group Corp.'s P/E ratio?
Warner Music Group Corp.'s current P/E ratio is 43.4x. The historical average is 44.0x. This places it at the 60th percentile of its historical range.
What is Warner Music Group Corp.'s EV/EBITDA?
Warner Music Group Corp.'s current EV/EBITDA is 17.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 19.2x.
What is Warner Music Group Corp.'s ROE?
Warner Music Group Corp.'s return on equity (ROE) is 51.0%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is -12.1%.
Is WMG stock overvalued?
Based on historical data, Warner Music Group Corp. is trading at a P/E of 43.4x. This is at the 60th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Warner Music Group Corp.'s dividend yield?
Warner Music Group Corp.'s current dividend yield is 2.43% with a payout ratio of 104.9%.
What are Warner Music Group Corp.'s profit margins?
Warner Music Group Corp. has 45.8% gross margin and 10.3% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does Warner Music Group Corp. have?
Warner Music Group Corp.'s Debt/EBITDA ratio is 4.0x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.