Warner Music (WMG) Stock Analysis

November 11, 2026

This is a peer-relative look at Warner Music (WMG): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Media & Entertainment peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Warner Music (WMG)
Profile Item	WMG
Name	Warner Music Group Corp.
Country/Region	United States
GICS Sector	Communication Services
GICS Industry Group	Media & Entertainment
GICS Industry	Entertainment
GICS Sub-Industry	Movies & Entertainment
Market Capitalization	16.37 billion USD
Currency	USD
Exchange	Nasdaq
Listing Date	June 3, 2020
Security Type	Common Stock

Price Performance

Cumulative Growth

WMG

GSPC

Warner Music (WMG) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Warner Music (WMG) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Warner Music (WMG) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Warner Music (WMG) metric values compared with Media & Entertainment industry-group medians
Metric	Current stock: WMG	Industry group median
Total Return (1Y)	6.98%	8.37%
Total Return (3Y, Annualized)	1.34%	9.50%
Total Return (5Y, Annualized)	-6.02%	-6.51%

Risk Profile

Drawdown History

WMG

GSPC

Warner Music (WMG) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Warner Music (WMG) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Warner Music (WMG) metric values compared with Media & Entertainment industry-group medians
Metric	Current stock: WMG	Industry group median
Volatility (1Y, Annualized)	35.24%	43.78%
Beta (5Y)	1.31	0.92
Max Drawdown (5Y)	-53.17%	-69.17%

Risk-Adjusted Performance

Risk-Return Positioning

Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. WMG is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Warner Music (WMG) metric values compared with Media & Entertainment industry-group medians
Metric	Current stock: WMG	Industry group median
Sharpe Ratio (1Y)	0.08	0.10
Sortino Ratio (1Y)	0.11	0.15

Profitability

ROE (TTM)

Warner Music (WMG) posts ROE of 70.07%, above the industry benchmark range. Equity is being turned into profit at an exceptional rate, but very high ROE should still be checked against leverage, buybacks, and the size of the equity base.

WMG

Media & Entertainment industry group

70.07%

Group distribution

WMG: 70.07%
Max: 49.92%
Q3: 17.95%
Median: 7.20%
Q1: -4.53%
Min: -26.31%

Largest peers

WMG: 70.07%
NFLX: 53.46%
GOOGL: 44.29%
GOOG: 44.29%
SPOT: 35.81%
META: 32.26%
DIS: 8.01%

Where Warner Music (WMG) stands on ROE within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Warner Music (WMG) keeps 9.20% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.

WMG

Media & Entertainment industry group

9.20%

Group distribution

Max: 32.91%
Q3: 11.75%
WMG: 9.20%
Median: 5.04%
Q1: -4.17%
Min: -25.14%

Largest peers

GOOGL: 50.03%
GOOG: 50.03%
META: 31.15%
NFLX: 29.69%
SPOT: 15.73%
WMG: 9.20%
DIS: 8.70%

Where Warner Music (WMG) stands on net margin within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Warner Music (WMG) turns 16.74% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.

WMG

Media & Entertainment industry group

16.74%

Group distribution

Max: 40.16%
Q3: 18.72%
WMG: 16.74%
Median: 8.63%
Q1: 1.90%
Min: -22.08%

Largest peers

META: 35.41%
NFLX: 34.63%
GOOGL: 31.81%
GOOG: 31.81%
DIS: 19.30%
WMG: 16.74%
SPOT: 13.52%

Where Warner Music (WMG) stands on operating margin within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Warner Music (WMG) metric values compared with Media & Entertainment industry-group medians
Metric	Current stock: WMG	Industry group median
ROE (TTM)	70.07%	7.20%
ROA (TTM)	7.65%	3.36%
Net Margin (TTM)	9.20%	5.04%
Operating Margin (TTM)	16.74%	8.63%
Gross Margin (TTM)	45.77%	50.97%

Growth

Revenue Growth

Warner Music (WMG) grew revenue 4.37%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

Warner Music (WMG): Revenue Growth across different time periods, set against Media & Entertainment industry-group medians.

EPS Growth

Warner Music (WMG) grew earnings per share -16.87%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

Warner Music (WMG): EPS Growth across different time periods, set against Media & Entertainment industry-group medians.

Growth Metrics

Warner Music (WMG) metric values compared with Media & Entertainment industry-group medians
Metric	Current stock: WMG	Industry group median
Revenue Growth (YoY)	4.37%	4.57%
Revenue Growth (3Y CAGR)	4.25%	5.19%
EPS Growth (YoY)	-16.87%	1.00%
EPS Growth (3Y CAGR)	-13.33%	25.23%

Financial Strength

Current Ratio (MRQ)

Warner Music (WMG) has current ratio of 0.73, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.

WMG

Media & Entertainment industry group

0.73

Group distribution

Max: 4.69
Q3: 2.53
Median: 1.52
Q1: 0.95
WMG: 0.73
Min: 0.28

Largest peers

GOOGL: 2.79
GOOG: 2.79
SPOT: 2.13
META: 1.90
NFLX: 1.08
WMG: 0.73
DIS: 0.71

Where Warner Music (WMG) stands on current ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Warner Music (WMG) has debt-to-equity ratio of 4.53, above the industry benchmark range. Debt sits unusually high against shareholders’ equity, leaving the balance sheet more exposed to rate, refinancing, or earnings shocks.

WMG

Media & Entertainment industry group

4.53

Group distribution

WMG: 4.53
Max: 3.65
Q3: 1.69
Median: 0.46
Q1: 0.17
Min: 0.00

Largest peers

WMG: 4.53
NFLX: 0.60
META: 0.42
DIS: 0.39
GOOGL: 0.22
GOOG: 0.22
SPOT: 0.05

Where Warner Music (WMG) stands on debt-to-equity ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Warner Music (WMG) metric values compared with Media & Entertainment industry-group medians
Metric	Current stock: WMG	Industry group median
Current Ratio (MRQ)	0.73	1.52
Debt / Equity (MRQ)	4.53	0.46
Net Debt / EBITDA	2.57	1.29

Dividends

Dividend Yield (TTM)

Warner Music (WMG) has dividend yield of 2.38%, above the entire industry range. That headline income is large, but yields this far above peers often come from a falling share price or an at-risk payout, so dividend safety matters more than the percentage itself.

WMG

Media & Entertainment industry group

2.38%

Group distribution

WMG: 2.38%
Max: 1.33%
Q3: 0.65%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

WMG: 2.38%
DIS: 1.28%
META: 0.35%
GOOG: 0.31%
GOOGL: 0.30%
NFLX: 0.00%
SPOT: 0.00%

Where Warner Music (WMG) stands on dividend yield within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Warner Music (WMG) has payout ratio of 60.80%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.

WMG

Media & Entertainment industry group

60.80%

Group distribution

Max: 71.43%
WMG: 60.80%
Q3: 28.98%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

WMG: 60.80%
DIS: 30.93%
META: 7.16%
GOOGL: 4.49%
GOOG: 4.49%
NFLX: 0.00%
SPOT: 0.00%

Where Warner Music (WMG) stands on payout ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Warner Music (WMG) metric values compared with Media & Entertainment industry-group medians
Metric	Current stock: WMG	Industry group median
Dividend Yield (TTM)	2.38%	0.00%
Dividend Payout Ratio (TTM)	60.80%	0.00%

Valuation

P/E Ratio (TTM)

Warner Music (WMG) trades at P/E ratio of 25.04, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

WMG

Media & Entertainment industry group

25.04

Group distribution

Max: 51.21
Q3: 28.90
WMG: 25.04
Median: 17.98
Q1: 11.53
Min: 1.64

Largest peers

SPOT: 36.75
WMG: 25.04
DIS: 24.07
META: 20.82
NFLX: 18.33
GOOGL: 14.87
GOOG: 14.83

Where Warner Music (WMG) stands on P/E ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Warner Music (WMG) trades at 2.24 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.

WMG

Media & Entertainment industry group

2.24

Group distribution

Max: 7.43
Q3: 3.82
WMG: 2.24
Median: 1.40
Q1: 0.70
Min: 0.00

Largest peers

GOOGL: 7.43
GOOG: 7.41
SPOT: 6.59
META: 6.46
NFLX: 5.24
WMG: 2.24
DIS: 2.04

Where Warner Music (WMG) stands on P/S ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Warner Music (WMG) trades at 19.17 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.

WMG

Media & Entertainment industry group

19.17

Group distribution

WMG: 19.17
Max: 11.45
Q3: 5.30
Median: 1.84
Q1: 0.77
Min: -2.61

Largest peers

WMG: 19.17
SPOT: 12.62
NFLX: 8.89
META: 5.73
GOOGL: 5.31
GOOG: 5.29
DIS: 1.84

Where Warner Music (WMG) stands on P/B ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Warner Music (WMG) metric values compared with Media & Entertainment industry-group medians
Metric	Current stock: WMG	Industry group median
P/E Ratio (TTM)	25.04	17.98
P/S Ratio (TTM)	2.24	1.40
P/B Ratio (MRQ)	19.17	1.84
Free Cash Flow Yield (TTM)	2.33%	7.41%