NASDAQ: WMG ยท Entertainment
Warner Music Group (WMG) fair value: undervalued or overvalued?
As of 19 Sep 2026, Faircurve's model values Warner Music Group (WMG) at $33.03 a share. The stock last closed at $27.69, which puts the model's fair value 19.3% above the price. On the model's bands that reads as Undervalued.
Revalued . Price is the close of 21 Sep 2026. Warner Music Group Corp.
What price range does the model give WMG?
The calibrated range for WMG over 63 trading days is $24.72 to $34.30. It sits around the last close, and its width comes from the volatility that WMG's own options imply (46% a year), calibrated weekly against realised prices (n = 2,982 past valuations, refreshed 19 Sep 2026). Ranges built this way held the price 60% of the time at this horizon. The fair value is the model's opinion and rides beside the range. It is not the centre of it.
The model's own simulated range, from the 20th to the 80th percentile of its runs, is $23.47 to $44.80. In 66% of the simulations the fair value came out above the price the model ran on.
How does WMG score on business quality?
Warner Music Group's overall quality score is 69 out of 100. Each factor below is a score against comparable companies, not a percentile of the metric beside it.
| Factor | Score (0 to 100) | Headline measure | Peer median |
|---|---|---|---|
| ProfitabilityReturn on invested capital against the peer group, with a bonus for an improving trend. | 87 | 14.8%ROIC | 5.6% |
| Earnings qualityHow much of reported profit is cash: free cash flow to net income, and the accrual ratio (the share of earnings that is not cash). | 68 | 1.21xFCF / net income | 1.40x |
| Growth qualityTrailing revenue growth, forward growth from consensus, and the direction of analyst estimate revisions. | 44 | 4.4%Revenue growth, trailing | 12.6% |
| Capital disciplineReinvestment efficiency (capital spending per unit of revenue) and net buybacks. | 65 | 0.7%Net buybacks / market value | 2.0% |
| Balance sheetNet debt to EBITDA and interest coverage. | 45 | 2.81xNet debt / EBITDA | 2.03x |
| StabilityDownside volatility of the EBITDA margin over the last five years. | 99 | 0.7 ptsEBITDA margin downside volatility, 5y | 4.1 pts |
How does WMG compare with similar companies?
The companies in entertainment closest to Warner Music Group in market value, each on the same model and the same date.
| Company | Last close | Model fair value | Gap | Model verdict |
|---|---|---|---|---|
| TKO TKO Group Holdings, Inc. | $191.12 | $218.60 | +14.4% | Low model confidence |
| PSKY Paramount Skydance Corporation Class B Common Stock | $9.91 | $9.18 | -7.4% | Low model confidence |
| MSGS Madison Square Garden Sports Corp. | $400.09 | $367.22 | -8.2% | Fairly valued |
| FOX Fox Corporation | $57.90 | $60.71 | +4.9% | Fairly valued |
| FOXA Fox Corporation | $64.79 | $65.73 | +1.5% | Fairly valued |
| LYV Live Nation Entertainment, Inc. | $169.18 | $195.10 | +15.3% | Undervalued |
| SPHR Sphere Entertainment Co. | $145.14 | $147.79 | +1.8% | Fairly valued |
| CNK Cinemark Holdings, Inc. | $36.25 | $42.34 | +16.8% | Undervalued |
When does WMG report earnings, and how has the stock reacted?
Warner Music Group's next earnings report is scheduled for 19 Nov 2026. Companies can move their dates.
Options prices on 21 Sep 2026 imply a move of about 9.5% in either direction through the nearest expiry, about 24 days out. That is the size the market is pricing, not a direction. WMG's 30 day implied volatility works out to about 13.4% over one month.
How WMG moved around its last 8 earnings reports
Each move runs from the last close before the report to the first close after it, so it covers companies that report before the open and after the close. The median size across these 8 reports, ignoring direction, was 4.2%.
| Report date | Two session move |
|---|---|
| 5 Aug 2026 | +2.5% |
| 7 May 2026 | +9.9% |
| 5 Feb 2026 | +3.0% |
| 20 Nov 2025 | +0.6% |
| 7 Aug 2025 | +5.6% |
| 8 May 2025 | -11.0% |
| 6 Feb 2025 | +1.9% |
| 21 Nov 2024 | -5.4% |
Warner Music Group at a glance
Warner Music Group Corp. (WMG), established in 1929 and based in New York City, functions as a prominent global entertainment enterprise primarily focused on music.
- Market value
- $14.6B
- Sector
- Communication Services
- Industry
- Entertainment
- Revenue expected, next twelve months
- $7.8B
- Consensus revenue growth, next fiscal year
- +9.4%
- Analysts with estimates
- 7
- Beta to the US market
- 0.44
- First valued by Faircurve
- 11 Jul 2026
How the fair value is worked out: the model prices Warner Music Group on the value of the whole business, debt included, against the operating profit analysts expect next year (forward EV/EBITDA), runs 2,000 simulations across its inputs and takes the midpoint. The full method is documented here.
What changed in the latest valuation?
On 12 Sep 2026 the model's fair value for WMG was $33.53. As of 19 Sep 2026 it is $33.03, a change of -1.5%. The model revalues every stock it covers each week, and again after an earnings report.
Questions about Warner Music Group's valuation
Is Warner Music Group stock undervalued or overvalued?
On Faircurve's model, WMG reads as Undervalued as of 19 Sep 2026. The model's fair value is $33.03 a share against a last close of $27.69, a gap of +19.3%.
What is WMG's fair value?
$33.03 a share as of 19 Sep 2026, the midpoint of 2,000 simulations. The model's own 20th to 80th percentile range is $23.47 to $44.80.
What price range does the model give WMG?
$24.72 to $34.30 over 63 trading days. Ranges built this way held the price 60% of the time across 2,982 past valuations, refreshed 19 Sep 2026.
When does Warner Music Group report earnings next?
The next report is scheduled for 19 Nov 2026. Companies can move their dates.
How much has WMG moved on past earnings reports?
Across its last 8 reports the median two session move was 4.2%, ignoring direction. The largest was -11.0% around the report of 8 May 2025.
How confident is the model in this valuation?
Model confidence for WMG is medium. The grade looks at how complete the inputs are, how many comparable companies there are and how closely they agree, and how wide the range of outcomes is. It is not a probability that the fair value is right, or that the price reaches it.