coteauBeta Get App

WMG

Warner Music Group
$31.44
+0.35% Oct 21 close
Communication ServicesS&P 400 CompareTechnicals
1M3M6M1Y2Y
-28%-17%-5%+6%+17%Oct 2025Oct 2026Apr 2026
WMGSPY
1W
+8.8%
1M
+13.5%
3M
+15.7%
6M
+8.7%
YTD
+4.5%
1Y
-3.5%

Live chart

Loading live chart…

What they do

Warner Music Group Corp. operates as a music entertainment company in the United States, the United Kingdom, Germany, and internationally. It operates through Recorded Music and Music Publishing segments. The company is involved in the discovery and development of recording artists, as well as related marketing, promotion, distribution, sale.

Communication Services · Entertainment

For information only · Important disclosures

Grades vs sector

Momentum
36th percentile in sector
C-
12-1 return: -11.4%
Percentile within its GICS sector across the S&P 1500.
Growth
54th percentile in sector
C+
Revenue growth (YoY): +10.4%
Percentile within its GICS sector across the S&P 1500.
Value
43rd percentile in sector
C
Forward E/P: 6.3% · EBITDA/EV: 8.0%
Percentile within its GICS sector across the S&P 1500.
Profitability
76th percentile in sector
B+
Profit margin: +9.2% · Return on equity: +70.1%
Percentile within its GICS sector across the S&P 1500.
Revisions
Not enough data yet
–
EPS estimate change, 30 days (current FY): –
30-day change in analysts' current-year EPS estimate; graded across covered stocks.

Our models

Not held by any of our 5 live models right now.

Quality Growth
Outside this model's universe or screens
 Momentum Top 15
Outside this model's universe or screens
 Momentum Blend
Not in the current book
 New Highs Growth
Outside this model's universe or screens
 Coteau Long Book
Not in the current book

News

More news
Spotify Stock Is Lagging This Year, but Jefferies Sees Its Platform as ‘Highly Defensible’ Against AI
Barrons.com · Oct 20

Key stats

52-week range$23.35 – $34.31
Valuation and fundamentals

Valuation & fundamentals

Bottom line
Leans undervalued
Model read-out from the numbers below, not advice. Score +1 (DCF counts double).
▲DCF (base case)above the price by 29188460%
▼Piotroski F-score3/9
•Net debt / EBITDA3.0x

Discounted cash flow

Bear
$4,389,988
+13962966%
growth -1% · disc. 10.2% · term. 2.0%
Base
$9,176,883
+29188460%
growth 4% · disc. 9.2% · term. 2.5%
Bull
$15,706,950
+49958392%
growth 7% · disc. 8.2% · term. 3.0%

A DCF starts from trailing free cash flow, so it can overstate value if the last 12 months were unusually strong (or weak). Use the bear case or edit the starting cash flow if so.

Reverse DCFfor context, not a signal
Not enough data to run a reverse DCF.
Edit assumptions · recalculates instantly
Your value per share–

Free cash flow = operating cash flow − capital spending, trailing 12 months (TTM to 2026-06-30). Growth default: average of 3-year revenue CAGR and latest revenue growth, capped at 30%. Years 6–10 fade linearly to terminal growth. Discount rate = 4.25% risk-free assumption + beta 1.00 (n/a) × 5% equity premium, kept within 7–13%. Bear: lower growth, +1 pt discount, 2% terminal. Bull: higher growth, −1 pt, 3%.

Multiples vs Communication Services

P/E (trailing)
sector median 18.8×
 –
Forward P/E
sector median 11.0×
 –
EV / EBITDA
sector median 12.2×
 –
Price / sales
sector median 1.9×
 –
Price / book
sector median 2.3×
 –
FCF yield
sector median 8.2%
 –

Backlog (remaining performance obligations)

RPO
$783.0M
as of 2026-06-30
vs a year ago
-44%
YoY
× TTM revenue
0.11×
coverage
24-09
24-12
25-03
25-06
25-09
25-12
26-03
26-06

Contracted revenue not yet recognized, from SEC filings (XBRL tag RevenueRemainingPerformanceObligation).

Quality & financial health

Gross margin
45.8%
Operating margin
13.7%
FCF margin
11.4%
Net margin
9.2%
Return on equity
78.7%
Return on invested capital
15.1%
Net debt / EBITDA
3.0×
Current ratio
0.7×
Interest cover
5.5×
Cash conversion (OCF/NI)
1.4×
Piotroski F-score 3/9 · last two fiscal years
✓ Positive net income✓ Positive operating cash flow✗ Return on assets improved✓ Cash flow above net income✗ Long-term debt / assets fell✗ Current ratio improved✗ No share dilution✗ Gross margin improved✗ Asset turnover improved

Analysts

No analyst targets available.

Annual history

FYRevenueNet incomeFree cash flow
2025$6.7B$365.0M$539.0M
2024$6.4B$435.0M$638.0M
2023$6.0B$430.0M$560.0M
2022$5.9B$551.0M$607.0M
2021$5.3B$304.0M$638.0M
2020$4.5B$-475.0M$463.0M

From the company's 10-K filings via SEC XBRL. 3-year revenue CAGR +4.3%.

Earnings

Next report: 2026-11-19 · before open · EPS est 0.42
24-1125-0225-0525-0825-1126-0226-0526-080.000.54
EstimateActual (beat)Actual (miss)
ReportEPS estActualSurprise
2026-08-050.390.51+31.2%
2026-05-070.290.43+46.6%
2026-02-050.400.43+6.9%
2025-11-200.330.51+54.5%
2025-08-070.290.25-16.5%
2025-05-080.280.12-58.4%
2025-02-060.330.54+61.8%
2024-11-210.310.31+2.5%
Insider trades
None
None · None
Sell
–
None
None · None
Sell
–
None
None · None
Sell
–
None
None · None
Sell
–
None
None · None
Sell
–
None
None · None
Sell
–

Stats refreshed 2026-10-21 18:10:48 ET from Yahoo Finance (yfinance). "–" means the data isn't available. Refresh now

Free. Not investment advice. Unsubscribe anytime.

coteau

Independent research · Not investment advice · Important disclosures · Contact desk@coteau.app

Coteau Systematic Strategies publishes stock research and model portfolios. Results are hypothetical unless marked Live. Data: Yahoo Finance (15-min delayed), SEC EDGAR and the House Clerk.

How it worksDisclaimerTermsPrivacyData statusSend feedback
Beta 0.9 · Oct 21, 2026