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Universal Music Group NVCHIX:UMGA 64 Debt-to-EBITDA is 4.06 as of Jun. 2026, which is 236% above its 10-year median of 1.21. GuruFocus rates CHIX:UMGA with a GF Score™ of 64/100 and a GF Value™ of €27.47 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 682 Media - Diversified companies, Universal Music Group NV ranks worse than 76.98% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Universal Music Group NV's Debt-to-EBITDA or its related term are showing as below:
CHIX:UMGa'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.44 Med: 1.21 Max: 4.71
Current: 4.71
During the past 9 years, the highest Debt-to-EBITDA Ratio of Universal Music Group NV was 4.71. The lowest was 0.44. And the median was 1.21.
CHIX:UMGa's Debt-to-EBITDA is ranked worse than 76.98% of 682
companies
in the Media - Diversified industry
Industry Median: 1.59
vs CHIX:UMGa: 4.71
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Universal Music Group NV Debt-to-EBITDA Related Terms
Universal Music Group NV Debt-to-EBITDA Historical Data
* 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.
CHIX:UMGA vs NFLX, DIS, WBD: Debt-to-EBITDA Comparison
For the Entertainment subindustry, Universal Music Group NV's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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.
Universal Music Group NV Debt-to-EBITDA vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Universal Music Group NV's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Universal Music Group NV's Debt-to-EBITDA falls into.
* 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.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is two times the quarterly (Jun. 2026) EBITDA data.
Universal Music Group NV (CHIX:UMGA) has a Debt-to-EBITDA of 4.06 as of Jun. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Universal Music Group NV. This is 236% above median its historical median of 1.21. Over the past decade, Universal Music Group NV's Debt-to-EBITDA has ranged from 0.44 to 4.71. According to the industry distribution chart, Universal Music Group NV ranks #525 out of 682 companies in the Media - Diversified industry, placing it in the top 77%.
Is Universal Music Group NV's Debt-to-EBITDA too high?
Universal Music Group NV's current Debt-to-EBITDA of 4.06 is 236% above median its 10-year median of 1.21. Over the past 10 years, this metric has ranged from a low of 0.44 to a high of 4.71. The Media - Diversified industry median Debt-to-EBITDA is 1.59. Universal Music Group NV's value of 4.06 is 155.3% above this industry median. Based on the distribution chart, Universal Music Group NV ranks #525 out of 682 companies in the Media - Diversified industry, which is in the bottom quartile relative to peers. Overall, Universal Music Group NV has a GF Score™ of 64/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Universal Music Group NV's Debt-to-EBITDA compare to NFLX and DIS?
According to the Media - Diversified industry distribution chart, Universal Music Group NV ranks #525 out of 682 companies for Debt-to-EBITDA. This places Universal Music Group NV in the lower half of its industry. The industry median Debt-to-EBITDA is 1.59. Universal Music Group NV's value of 4.06 is 155.3% above this benchmark. Historically, Universal Music Group NV's own Debt-to-EBITDA has ranged from 0.44 to 4.71 over the past decade. While the company's 10-year median is 1.21 vs. the industry median of 1.59, Universal Music Group NV has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Media - Diversified company?
The median Debt-to-EBITDA among Media - Diversified companies is 1.59, based on 682 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Universal Music Group NV's current Debt-to-EBITDA of 4.06 is 155.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Universal Music Group NV. For the Media - Diversified industry, the median Debt-to-EBITDA is 1.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Universal Music Group NV's current Debt-to-EBITDA is 4.06, which is 236% above median its own 10-year median of 1.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Universal Music Group NV stock overvalued right now?
Based on GuruFocus' analysis, Universal Music Group NV (CHIX:UMGA) is currently considered Possible Value Trap. The stock's GF Value™ is €27.47, compared to a current price of €14.90 — trading 45.8% below its estimated fair value. The current Debt-to-EBITDA is 4.06, which is 236% above median its 10-year median of 1.21 and 155.3% above the Media - Diversified industry median of 1.59. Universal Music Group NV's overall GF Score™ is 64/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Universal Music Group NV (CHIX:UMGA), the current Debt-to-EBITDA is 4.06 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Universal Music Group NV (CHIX:UMGA) Overvalued in 2026?
Based on GuruFocus' analysis, Universal Music Group NV stock appears to be undervalued.
The current stock price of €14.90 is trading 45.8% below its estimated GF Value™ of €27.47.
GuruFocus considers Universal Music Group NV to be Possible Value Trap.
Key valuation signals for CHIX:UMGA:
Debt-to-EBITDA: 4.06 (236% above median its 10-year median of 1.21)
GF Value™: €27.47 vs. price of €14.90 (45.8% below fair value)
Industry Position: 155.3% above the Media - Diversified median (#525 of 682)
No single metric tells the full story. See the CHIX:UMGA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Universal Music is the largest of the three major record companies. Recorded music accounts for most of the firm's revenue, with the segment housing more than a dozen record labels, including notable names like Interscope, Capital Music, Motown Records, and Def Jam. Some of the most successful current artists signed to record deals with Universal include Taylor Swift, Drake, The Weeknd, and Morgan Wallen. Most of Universal's remaining sales come from its publishing segment, which generates revenue for songwriters and composers, including some of Universal's recording artists as well as songwriters and composers who do not record music themselves or are attached to other labels. Universal's publishing group has nearly 4.5 million owned or administered titles in its catalog.
64GF Score
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