Warner Music Valuation
| WA4 Stock | EUR 30.94 0.87 2.73% |
At this time, the company appears to be overvalued. Warner Music Group maintains a prevalent Real Value of €29.58 per share. The last-minute price of the company is €30.94. Our model calculates the value of Warner Music Group from examining the company fundamentals such as Profit Margin of 0.08 %, return on asset of 0.0544, and Current Valuation of 19.93 B as well as analyzing its technical indicators and probability of bankruptcy.
Overvalued
Today
Please note that Warner Music's price fluctuation is very steady at this time. Calculation of the real value of Warner Music Group is based on 3 months time horizon. Increasing Warner Music's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Warner stock is determined by what a typical buyer is willing to pay for full or partial control of Warner Music Group. Since Warner Music is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Warner Stock. However, Warner Music's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 30.94 | Real 29.58 | Hype 30.94 | Naive 31.15 |
The real value of Warner Stock, also known as its intrinsic value, is the underlying worth of Warner Music Group Company, which is reflected in its stock price. It is based on Warner Music's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Warner Music's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of Warner Music Group helps investors to forecast how Warner stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Warner Music more accurately as focusing exclusively on Warner Music's fundamentals will not take into account other important factors: Warner Music Total Value Analysis
Warner Music Group is at this time estimated to have takeover price of 19.93 B with market capitalization of 15.82 B, debt of 3.73 B, and cash on hands of 345 M. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Warner Music fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
19.93 B | 15.82 B | 3.73 B | 345 M |
Warner Music Investor Information
About 89.0% of the company outstanding shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 2.6. Warner Music Group last dividend was issued on the 17th of February 2023. Based on the measurements of operating efficiency obtained from Warner Music's historical financial statements, Warner Music Group is not in a good financial situation at the moment. It has a very high risk of going through financial straits in December.Warner Music Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Warner Music has an asset utilization ratio of 75.61 percent. This implies that the Company is making €0.76 for each dollar of assets. An increasing asset utilization means that Warner Music Group is more efficient with each dollar of assets it utilizes for everyday operations.Warner Music Ownership Allocation
Warner Music Group retains a total of 138.29 Million outstanding shares. The majority of Warner Music outstanding shares are owned by institutional investors. These institutions are usually referred to as non-private investors looking to purchase positions in Warner Music Group to benefit from reduced commissions. Consequently, other corporate entities are subject to a different set of regulations than regular investors in Warner Music Group. Please pay attention to any change in the institutional holdings of Warner Music Group as this could imply that something significant has changed or is about to change at the company. Also note that almost five hundred eleven thousand six hundred sixty-six invesors are currently shorting Warner Music expressing very little confidence in its future performance.Warner Music Profitability Analysis
The company reported the revenue of 5.92 B. Net Income was 551 M with profit before overhead, payroll, taxes, and interest of 2.84 B.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Warner Music's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Warner Music and how it compares across the competition.
About Warner Music Valuation
The stock valuation mechanism determines Warner Music's current worth on a weekly basis. Our valuation model uses a comparative analysis of Warner Music. We calculate exposure to Warner Music's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Warner Music's related companies.Warner Music Group Corp. operates as a music entertainment company in the United States, the United Kingdom, Germany, and internationally. The company was founded in 1929 and is headquartered in New York, New York. WARNER MUSIC operates under Entertainment classification in Germany and is traded on Frankfurt Stock Exchange. It employs 5900 people.
8 Steps to conduct Warner Music's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Warner Music's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Warner Music's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Warner Music's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Warner Music's revenue streams: Identify Warner Music's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Warner Music's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Warner Music's growth potential: Evaluate Warner Music's management, business model, and growth potential.
- Determine Warner Music's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Warner Music's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Complementary Tools for Warner Stock analysis
When running Warner Music's price analysis, check to measure Warner Music's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Warner Music is operating at the current time. Most of Warner Music's value examination focuses on studying past and present price action to predict the probability of Warner Music's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Warner Music's price. Additionally, you may evaluate how the addition of Warner Music to your portfolios can decrease your overall portfolio volatility.
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