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Warner Music GroupFRA:WA4 -5.65%79 Debt-to-EBITDA is 3.10 as of Mar. 2026, which is 23% below its 10-year median of 4.05. GuruFocus rates FRA:WA4 with a GF Score™ of 79/100 and a GF Value™ of €30.61 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 678 Media - Diversified companies, Warner Music Group ranks worse than 72.42% 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 Warner Music Group's Debt-to-EBITDA or its related term are showing as below:
FRA:WA4'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -58.34 Med: 4.05 Max: 7.06
Current: 3.94
During the past 13 years, the highest Debt-to-EBITDA Ratio of Warner Music Group was 7.06. The lowest was -58.34. And the median was 4.05.
FRA:WA4's Debt-to-EBITDA is ranked worse than 72.42% of 678
companies
in the Media - Diversified industry
Industry Median: 1.625
vs FRA:WA4: 3.94
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.
Warner Music Group Debt-to-EBITDA Related Terms
Warner Music Group Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Warner Music Group's Debt-to-EBITDA 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.
FRA:WA4 vs TKO, NWSA, SIRI: Debt-to-EBITDA Comparison
For the Entertainment subindustry, Warner Music Group'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.
Warner Music Group Debt-to-EBITDA vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Warner Music Group's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Warner Music Group'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 four times the quarterly (Mar. 2026) EBITDA data.
Warner Music Group (FRA:WA4) has a Debt-to-EBITDA of 3.10 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Warner Music Group. This is 23% below median its historical median of 4.05. According to the industry distribution chart, Warner Music Group ranks #491 out of 678 companies in the Media - Diversified industry, placing it in the top 72.4%.
Is Warner Music Group's Debt-to-EBITDA too high?
Warner Music Group's current Debt-to-EBITDA of 3.10 is 23% below median its 10-year median of 4.05. The Media - Diversified industry median Debt-to-EBITDA is 1.63. Warner Music Group's value of 3.10 is 90.8% above this industry median. Based on the distribution chart, Warner Music Group ranks #491 out of 678 companies in the Media - Diversified industry, which is below the industry midpoint. Overall, Warner Music Group has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Warner Music Group's Debt-to-EBITDA compare to TKO and NWSA?
According to the Media - Diversified industry distribution chart, Warner Music Group ranks #491 out of 678 companies for Debt-to-EBITDA. This places Warner Music Group in the lower half of its industry. The industry median Debt-to-EBITDA is 1.63. Warner Music Group's value of 3.10 is 90.8% above this benchmark. While the company's 10-year median is 4.05 vs. the industry median of 1.63, Warner Music Group 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 1.63, based on 678 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. Warner Music Group's current Debt-to-EBITDA of 3.10 is 90.8% 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 Warner Music Group. For the Media - Diversified industry, the median Debt-to-EBITDA is 1.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Warner Music Group's current Debt-to-EBITDA is 3.10, which is 23% below median its own 10-year median of 4.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Warner Music Group stock overvalued right now?
Based on GuruFocus' analysis, Warner Music Group (FRA:WA4) is currently considered Modestly Undervalued. The stock's GF Value™ is €30.61, compared to a current price of €22.38 — trading 26.9% below its estimated fair value. The current Debt-to-EBITDA is 3.10, which is 23% below median its 10-year median of 4.05 and 90.8% above the Media - Diversified industry median of 1.63. Warner Music Group's overall GF Score™ is 79/100 with 2 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 Warner Music Group (FRA:WA4), the current Debt-to-EBITDA is 3.10 as of Mar. 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 Warner Music Group (FRA:WA4) Overvalued in 2026?
Based on GuruFocus' analysis, Warner Music Group stock appears to be undervalued.
The current stock price of €22.38 is trading 26.9% below its estimated GF Value™ of €30.61.
GuruFocus considers Warner Music Group to be Modestly Undervalued.
Key valuation signals for FRA:WA4:
Debt-to-EBITDA: 3.10 (23% below median its 10-year median of 4.05)
GF Value™: €30.61 vs. price of €22.38 (26.9% below fair value)
Industry Position: 90.8% above the Media - Diversified median (#491 of 678)
No single metric tells the full story. See the FRA:WA4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
79GF Score
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Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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