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 shift towards a more favorable assessment. The company is currently considered undervalued, supported by a P/E ratio of 19, an EV to EBITDA ratio of 12.53, and a Price to Book Value of 24.24. In comparison to peers, Warner Music's P/E ratio is lower than CompoSecure, Inc. at 21.96 and significantly lower than Cimpress Plc at 80.96, suggesting it may offer better value relative to its earnings.
Despite some recent underperformance against the S&P 500, with a year-to-date return of 6.44% compared to 13.30% for the index, the company's strong ROE of 129.12% and ROCE of 24.67% indicate robust profitability and efficiency. Overall, these metrics reinforce the view that Warner Music Group Corp. is undervalued in the current market context.