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WMG (Warner Music Group) Cyclically Adjusted Price-to-FCF : 38.67 (As of Jul. 06, 2025)


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What is Warner Music Group Cyclically Adjusted Price-to-FCF?

As of today (2025-07-06), Warner Music Group's current share price is $29.39. Warner Music Group's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2025 was $0.76. Warner Music Group's Cyclically Adjusted Price-to-FCF for today is 38.67.

The historical rank and industry rank for Warner Music Group's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

WMG' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 34.5   Med: 55.2   Max: 105.3
Current: 38.53

During the past years, Warner Music Group's highest Cyclically Adjusted Price-to-FCF was 105.30. The lowest was 34.50. And the median was 55.20.

WMG's Cyclically Adjusted Price-to-FCF is ranked worse than
75.56% of 360 companies
in the Media - Diversified industry
Industry Median: 15.74 vs WMG: 38.53

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Warner Music Group's adjusted free cash flow per share data for the three months ended in Mar. 2025 was $-0.088. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is $0.76 for the trailing ten years ended in Mar. 2025.

Shiller PE for Stocks: The True Measure of Stock Valuation


Warner Music Group Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Warner Music Group's Cyclically Adjusted Price-to-FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Warner Music Group Cyclically Adjusted Price-to-FCF Chart

Warner Music Group Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 79.78 90.36 41.84 49.08 42.50

Warner Music Group Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Cyclically Adjusted Price-to-FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 49.54 43.29 42.50 39.50 41.10

Competitive Comparison of Warner Music Group's Cyclically Adjusted Price-to-FCF

For the Entertainment subindustry, Warner Music Group's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Warner Music Group's Cyclically Adjusted Price-to-FCF Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Warner Music Group's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Warner Music Group's Cyclically Adjusted Price-to-FCF falls into.


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Warner Music Group Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Warner Music Group's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=29.39/0.76
=38.67

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Warner Music Group's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2025 is calculated as:

For example, Warner Music Group's adjusted Free Cash Flow per Share data for the three months ended in Mar. 2025 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Mar. 2025 (Change)*Current CPI (Mar. 2025)
=-0.088/134.9266*134.9266
=-0.088

Current CPI (Mar. 2025) = 134.9266.

Warner Music Group Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201506 -0.078 100.684 -0.105
201509 0.175 100.392 0.235
201512 0.088 99.792 0.119
201603 0.185 100.470 0.248
201606 0.050 101.688 0.066
201609 0.225 101.861 0.298
201612 0.293 101.863 0.388
201703 0.110 102.862 0.144
201706 0.133 103.349 0.174
201709 0.410 104.136 0.531
201712 0.237 104.011 0.307
201803 -0.034 105.290 -0.044
201806 0.223 106.317 0.283
201809 0.245 106.507 0.310
201812 0.122 105.998 0.155
201903 -0.074 107.251 -0.093
201906 0.237 108.070 0.296
201909 0.223 108.329 0.278
201912 0.104 108.420 0.129
202003 0.131 108.902 0.162
202006 0.184 108.767 0.228
202009 0.249 109.815 0.306
202012 -0.339 109.897 -0.416
202103 0.247 111.754 0.298
202106 -0.119 114.631 -0.140
202109 0.332 115.734 0.387
202112 -0.136 117.630 -0.156
202203 0.023 121.301 0.026
202206 0.231 125.017 0.249
202209 0.690 125.227 0.743
202212 0.301 125.222 0.324
202303 -0.097 127.348 -0.103
202306 0.198 128.729 0.208
202309 0.463 129.860 0.481
202312 0.397 129.419 0.414
202403 -0.154 131.776 -0.158
202406 0.230 132.554 0.234
202409 0.400 133.029 0.406
202412 0.492 133.157 0.499
202503 -0.088 134.927 -0.088

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Warner Music Group  (NAS:WMG) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Warner Music Group Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Warner Music Group's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Warner Music Group Business Description

Address
1633 Broadway, New York, NY, USA, 10019
Warner Music is the third-largest of the three major record companies. Recorded music accounts for most of the firm's revenue, with the segment housing notable record labels including Atlantic Records, Warner Records, Elektra Records. Some of the most successful current artists signed to record deals with Warner include Ed Sheeran, Bruno Mars, Cardi B, and Dua Lipa. Warner's remaining revenue comes from its publishing business, where Warner Chappell represents more than 180,000 songwriters and composers, some of whom are also Warner recording artists but many of whom are not recording artists or are attached to other labels. Warner Chappell controls more than 1 million musical compositions. Access Industries controls 98% of Warner's voting rights, while holding a 72% economic interest.
Executives
Timothy Matusch officer: EVP Strategy & Operations C/O WARNER MUSIC GROUP CORP., 1633 BROADWAY, NEW YORK NY 10019
Valentin Blavatnik director C/O WARNER MUSIC GROUP CORP., 1633 BROADWAY, NEW YORK NY 10019
Maria Osherova officer: EVP, Chief Human Res. Officer C/O WARNER MUSIC GROUP CORP., 1633 BROADWAY, NEW YORK NY 10019
Lincoln E Benet director C/O LYONDELLBASELL INDUSTRIES N.V., DELFTSEPLEIN 27E, ROTTERDAM P7 3013AA
Max Lousada director, officer: CEO, Recorded Music C/O WARNER MUSIC GROUP CORP., 1633 BROADWAY, NEW YORK NY 10019
Carletta Higginson officer: EVP, Chief Digital Officer C/O WARNER MUSIC GROUP CORP., 1633 BROADWAY, NEW YORK NY 10019
Bryan Castellani officer: Chief Financial Officer C/O WARNER MUSIC GROUP CORP., 1633 BROADWAY, NEW YORK NY 10019
Entertainment Holdings Ii Llc 10 percent owner 40 WEST 57TH STREET, 28TH FLOOR, NEW YORK NY 10019
Robert Kyncl officer: Co-CEO C/O WARNER MUSIC GROUP CORP., 1633 BROADWAY, NEW YORK NY 10019
Nancy Dubuc director C/O WARNER MUSIC GROUP CORP., 1633 BROADWAY, NEW YORK NY 10019
Ai Entertainment Holdings Llc 10 percent owner C/O ACCESS INDUSTRIES, LLC, 40 WEST 57TH ST, 28TH FLR, NEW YORK NY 10019
Louis Dickler officer: Acting CFO & Corp. Contr. C/O WARNER MUSIC GROUP CORP., 1633 BROADWAY, NEW YORK NY 10019
Thomas H Lee director C/O THOMAS H. LEE CAPITAL LLC, 767 FIFTH AVENUE, 6TH FLOOR, NEW YORK NY 10153
Michael Lynton director 2000 AVENUE OF THE STARS 12TH FL, LOS ANGELES CA 90067
Ynon Kreiz director 333 CONTINENTAL BOULEVARD, M1: 1518, EL SEGUNDO CA 90245