Oversold

WMG

Same as last week
Valuation80/ 100
Cash flow & growth78/ 100
Upside potential65/ 100
Risk potential20/ 100

WMG's valuation is historically cheap, fundamentals are above averages and forward estimates point to earnings growth and improving margins, though analyst coverage is limited.

Valuation

Historical cheapness: current PE is 22× versus the full-history median of 35.7× shown in the valuation table, producing 78.5/100. Positive weekly observations receive equal weight; lower past EPS alone does not disqualify them.

Outlook-adjusted valuation: 79.9/100. The model applies a 15.7% earnings-growth assumption and a 10% annual return hurdle, with positive credit limited by evidence coverage and confidence.

Forward price scenarios use recent PE history separately. Recent history has a separately weighted median of 35.4× (18-month half-life). The favorable scenario uses 25.2× PE and $1.6 projected EPS, informed by growth, margins and earnings-quality checks. This is a model scenario, not an analyst target. A return to the full-history median is not assumed.

Cash flow & growth

Business trends are strong. Over the past year: revenue +12.9%, earnings +128%, operating margin +3.6 percentage points. Free cash flow is 11.1% of revenue. The business score is 78.4/100. Growth, margins and cash generation drive the score. Missing or older data receives less weight.

Favorable scenario

Stronger earnings and valuation could support a higher share price.

Our favorable case uses $1.62 of EPS and a 25.2× PE, suggesting a share price of about $40.80 — 44% above today’s price. Valuation history and outlook inform the PE.

This is a scenario based on our model, not a forecast or probability.

Downside scenario

Weaker than expected earnings could put pressure on the share price.

Our downside case uses $1.09 of EPS and a 20.9× PE, suggesting a share price of about $22.77 — 20% below today’s price. Valuation history and outlook inform the PE.

This is a scenario based on our model, not a forecast or probability.

WMG vs Historical averages

MetricCurrentAverageRelative
PE22x41x46% lower
PE percentile1.15098% lower
EPS$1.29$0.54139% higher
FCF$814M$401.3M103% higher
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WMG’s earnings and cash flow are above their historical averages, while its earnings multiple is lower.

WMG Forward outlook

MetricOutlook
Forward valuationStrongly improving
Forward earningsStrong growth
Forward revenueStable
Forward profitabilityExpanding
Analyst coverageLimited
Estimate dispersionTight

WMG’s outlook is generally improving, though analyst coverage is limited.

WMG PE Valuation

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This table applies WMG's historical price-to-earnings (PE) landmarks to current earnings. The implied prices are valuation scenarios, not price forecasts or targets.

WMG Earnings Per Share

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This chart tracks WMG's trailing twelve-month diluted earnings per share, calculated from four consecutive reported quarters to reduce seasonal noise.

WMG Quarterly Revenue

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This chart tracks WMG's quarterly revenue over time and shows how sales are changing from year to year.

WMG Free Cash Flow

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This chart tracks WMG's free cash flow over time, showing whether the business is consistently generating cash after operating costs and capital spending.

WMG Total Shares

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This chart tracks changes in WMG's diluted share count. A rising count can dilute existing owners, while a falling count often reflects share repurchases.

WMG Net Leverage

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Quarterly Net Leverage uses the last 12 months of EBITDA. A falling multiple generally indicates less debt relative to earnings capacity. Negative values mean net cash; missing data or nonpositive LTM EBITDA are N/A. The table shows each period’s Net Leverage and status.

WMG PE vs Communication Services Sector

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This chart compares WMG's price-to-earnings (PE) ratio with the Communication Services sector average. A discount or premium can reflect differences in expected growth, profitability, or risk.

WMG Weekly Price

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This chart uses WMG's weekly closing prices to show the longer-term trend. The lower panes show weekly RSI and Stochastic momentum.

WMG Weekly Moving Averages

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This chart compares WMG's 8, 20, 50, 100, and 200-week moving averages from 2020 onward. Shorter averages react faster to price changes, while longer averages show the broader trend.

WMG Yearly ROI

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Each line starts at 0% using the year’s first dependable weekly close and tracks the return through December, or through the latest available week for the current year.