Is Warner Music Group Corp. overvalued or undervalued?

As of 8 May 2025, the valuation grade for Warner Music Group Corp. has moved from very attractive to fair. The company appears to be fairly valued at this time. Key ratios include a P/E ratio of 19, an EV to EBITDA of 12.53, and a Price to Book Value of 24.24.
In comparison to its peers, Warner Music's P/E ratio of 18.775 is in line with the industry average, while its EV to EBITDA ratio is slightly above the peer average of 12.5343. Notably, the company's ROE stands at an impressive 129.12%, indicating strong profitability relative to equity. Despite recent stock performance lagging behind the S&P 500, with a year-to-date return of -13.42% compared to the index's 2.44%, the current valuation suggests that Warner Music is neither undervalued nor overvalued at this juncture.