Latest Ratios: P/E Ratio 40.6x · EV/EBITDA 16.4x · ROE 51.0%. (2002–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $14.8B | $17.7B | $16.2B | $16.2B | $12.1B | $21.9B | $14.7B | — | — | — | — |
| Enterprise Value | $18.9B | $21.8B | $19.8B | $19.8B | $15.5B | $25.1B | $17.5B | — | — | — | — |
| P/E Ratio → | 40.63 | 48.66 | 37.26 | 38.29 | 21.90 | 73.69 | — | — | — | — | — |
| P/S Ratio | 2.21 | 2.64 | 2.52 | 2.68 | 2.04 | 4.14 | 3.28 | — | — | — | — |
| P/B Ratio | 19.50 | 23.35 | 24.00 | 37.66 | 71.81 | 477.08 | — | — | — | — | — |
| P/FCF | 27.54 | 32.80 | 25.39 | 36.31 | 29.00 | 342.90 | 43.37 | — | — | — | — |
| P/OCF | 21.89 | 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
Enterprise-value multiples — capital-structure-neutral measures of total business value
| 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 | 16.36 | 18.82 | 17.21 | 17.66 | 14.71 | 27.46 | 548.35 | — | — | — | — |
| EV / EBIT | 27.26 | 33.37 | 25.97 | 26.42 | 17.91 | 43.47 | — | — | — | — | — |
| EV / FCF | — | 40.36 | 31.02 | 44.42 | 37.24 | 392.54 | 51.91 | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
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% |
| 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% |
Solvency and debt-coverage ratios — lower is generally safer
| 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 |
Short-term solvency ratios and asset-utilisation metrics
| 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 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
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 | 2.6% | 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% | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.5% | 2.1% | 2.7% | 2.6% | 4.6% | 1.4% | — | — | — | — | — |
| FCF Yield | 3.6% | 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 | 2.7% | 2.3% | 2.3% | 2.1% | 2.7% | 1.2% | 2.3% | — | — | — | — |
| Shares Outstanding | — | $519M | $518M | $516M | $520M | $513M | $510M | $510M | $502M | $502M | $502M |
High Debt Leverage Sensitivity
According to recent market data, WMG trades at a trailing P/E of 38.51, which appears elevated relative to its historical norms and suggests that investors are pricing in significant future growth in streaming royalties despite the company's inconsistent bottom-line performance and high debt-to-equity ratio.
The forward P/E of 19.02 implies a substantial expected improvement in earnings, yet this valuation remains sensitive to the company's ability to maintain its market share in a maturing streaming landscape. Investors should monitor whether this premium is justified by operational efficiency gains or if it reflects an over-optimistic outlook on the sustainability of current royalty growth rates.
Based on reported financial statements, WMG's ROIC has fluctuated between 2.1% and 6.5% over the last ten quarters, indicating that the company is struggling to generate returns on invested capital that consistently exceed its likely cost of capital, particularly given its heavy reliance on debt financing.
The persistent gap between ROIC and the company's high debt load suggests that capital allocation is currently focused on servicing existing obligations rather than compounding value through high-return projects. This trend warrants further investigation into whether the company's recent investments in catalog acquisitions are yielding the expected long-term cash flow benefits.
As reported in quarterly filings, WMG's cash conversion cycle has remained relatively stable, averaging approximately 50 days over the last ten quarters, which suggests that the company's ability to manage its working capital is largely dictated by the rigid payment terms inherent in global music royalty distribution.
While the DSO remains elevated, the company's reliance on DSP payment schedules limits its ability to optimize cash flow through internal operational improvements. This structural constraint implies that any significant improvement in liquidity would likely require a fundamental shift in how the company negotiates its licensing and royalty collection agreements.
Based on the provided balance sheet data, WMG's debt-to-equity ratio of 5.08 as of 2026Q2 highlights a persistent reliance on external financing, which may limit the company's capacity to compete for premium music catalogs against better-capitalized peers in the current interest rate environment.
The interest coverage ratio, which has dipped as low as 0.74 in recent periods, suggests that debt service is becoming increasingly burdensome during quarters of lower operating income. This vulnerability warrants close monitoring, as any further compression in operating margins could significantly impair the company's financial flexibility and ability to fund future growth.
The P/E ratio is frequently misapplied to WMG's business model because it fails to account for the significant non-cash amortization of capitalized artist advances, which often obscures the company's true underlying cash-generating capacity and leads to an inaccurate assessment of its valuation relative to peers.
Analysts should instead prioritize EV/EBITDA or P/FCF, as these metrics better capture the company's operational performance by neutralizing the impact of accounting-driven amortization and the company's heavy debt-laden capital structure. Relying solely on P/E risks misinterpreting the company's earnings quality and its ability to sustain shareholder returns.
Includes 30+ ratios · 24 years · Updated daily
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Quick answers to the most common questions about buying WMG stock.
Warner Music Group Corp.'s current P/E ratio is 40.6x. The historical average is 44.0x. This places it at the 60th percentile of its historical range.
Warner Music Group Corp.'s current EV/EBITDA is 16.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 19.2x.
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%.
Based on historical data, Warner Music Group Corp. is trading at a P/E of 40.6x. This is at the 60th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Warner Music Group Corp.'s current dividend yield is 2.59% with a payout ratio of 104.9%.
Warner Music Group Corp. has 45.8% gross margin and 10.3% operating margin. Operating margin between 10-20% is typical for established companies.
Warner Music Group Corp.'s Debt/EBITDA ratio is 4.0x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.