D/E 5.08 — most levered decile in Communication Services (≈95th pctile)
P/E34.5xC+
P/E 34.5 — above the Communication Services median (≈75th pctile)
PEG0.53A-
PEG 0.53 — strong; Lynch's preferred zone
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 73.3
Quality0.71
Growth0.76
Value0.73
Why this score
Raising its dividend
Entry · Margin of safety
52-week rangeMid-range
18% off the 12-month high
vs DCF fair value61% aboveest. fair value ~$18
What the price assumes: free cash flow compounding at ~17% a year for the next decade — vs the ~6% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability31% · B+gross profit ÷ total assets (Novy-Marx)
ROIC13.9% · B+return on invested capital — not score-weighted
Why now
Entertainment · market cap $15.1b. 18% off the 52-week high of $35.42. Revenue growing +13%, comfortably above the S&P median. PEG 0.53 — paying under fair value for the growth rate. 17 sell-side analysts rate this a Buy with a mean 1-yr target of $38.12 (implying +31% upside).
Moat
ROE 61% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 161% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk
D/E 5.08 is elevated — limits strategic flexibility and raises refinancing exposure if rates stay higher for longer. Trailing P/E 35x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates.
Horizon
1-3 yr $38.12 (17-analyst consensus) — fundamentals + valuation re-rating. 5 yr $55.81 at ~14% CAGR — compounding case rests on the competitive position widening. 10 yr $82.79 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Score history · WMG
Trend
+8.8 over 15 daily scores
From 64.5 (Jun 22) → 73.3 (now)
One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.
Position sizing · WMG
$
%
%
Shares to buy
68
Position size
$1,971
3.9% of portfolio
Stop price
$21.74
25% below $28.99
$ at risk if stopped
$492.83
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
Warner Music Group Corp. (WMG): score, valuation & FAQ
Warner Music Group Corp. (WMG) is a Entertainment company that scores 73.3 out of 100 on the Bull Rankings quality-growth model — a solid, above-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are PEG (A-) and Rev (B+), while D/E (D) rate weaker. On valuation, WMG sits about 61% above our discounted-cash-flow fair value — the current price implies roughly 17% annual free-cash-flow growth over the next decade.
Is WMG a good stock to buy?
Bull Rankings scores WMG 73.3 out of 100 on its quality-growth model, which is a solid, above-average reading. That is driven by PEG (A-) and Rev (B+). A score is a quantitative screen of Warner Music Group Corp.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does WMG score 73.3 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). WMG earns its highest marks on PEG (A-) and Rev (B+), and is held back by D/E (D). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is WMG overvalued or undervalued?
Based on $28.99, WMG sits about 61% above our discounted-cash-flow fair value — the current price implies roughly 17% annual free-cash-flow growth over the next decade. It trades at a 34.5x× P/E (graded C+). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in WMG?
D/E 5.08 is elevated — limits strategic flexibility and raises refinancing exposure if rates stay higher for longer. Trailing P/E 35x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.