Is Warner Music Group Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Warner Music Group Corp. has moved from fair to attractive, indicating a more favorable assessment of its market position. The company appears to be undervalued, particularly when considering its P/E ratio of 19, which is lower than the peer average of 27.05, and an EV to EBITDA ratio of 12.53 compared to peers like CompoSecure, Inc. at 36.50. Additionally, Warner Music boasts a strong ROE of 129.12%, suggesting efficient use of equity capital.
In comparison to its peers, Deluxe Corp. has a notably low P/E of 9.65, while Cimpress Plc shows a significantly high P/E of 80.96, highlighting the diverse valuation landscape within the industry. Despite its recent underperformance with a 1Y return of 2.21% compared to the S&P 500's 14.08%, Warner Music's strong fundamentals and attractive valuation ratios suggest that it may present a compelling investment opportunity moving forward.