Universal Music Group NV (CHIX:UMGA) EBIT: €2,223 Mil (TTM As of Dec. 2025)

What is Universal Music Group NV EBIT?

Universal Music Group NV CHIX:UMGA 75 EBIT is €2,223 Mil as of Dec. 2025. GuruFocus rates CHIX:UMGA with a GF Score™ of 75/100 and a GF Value™ of €27.62 (Possible Value Trap). The stock has 4 warning signs investors should review.

Universal Music Group NV's earnings before interest and taxes (EBIT) for the six months ended in Dec. 2025 was €213 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2025 was €2,223 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Universal Music Group NV's annualized ROC % for the quarter that ended in Dec. 2025 was 11.93%. Universal Music Group NV's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 62.33%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Universal Music Group NV's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 6.05%.

Universal Music Group NV (CHIX:UMGa) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Universal Music Group NV's annualized ROC % for the quarter that ended in Dec. 2025 is calculated as:

	ROC % (Q: Dec. 2025 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2025 )	+	Invested Capital (Q: Dec. 2025 ))	/ count )
=	2388 * ( 1 - 26.06% )	/	( (15029	+	14566)	/ 2 )
=	1765.6872	/	14797.5
=	11.93 %

where

	Invested Capital		(Q: Jun. 2025 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	18301	-	5909	-	( 525	-	max(0, 7174	-	4537	+	525	))
=	15029

	Invested Capital		(Q: Dec. 2025 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	17456	-	5521	-	( 82	-	max(0, 7206	-	4575	+	82	))
=	14566

Note: The Operating Income data used here is two times the semi-annual (Dec. 2025) data.

2. Joel Greenblatt's definition of Return on Capital:

Universal Music Group NV's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2025 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2025		Q: Dec. 2025
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	426	/	( ( (646 + max(-2034, 0))	+	(721 + max(-2391, 0)) )	/	2 )
=	426	/	( ( 646	+	721 )	/	2 )
=	426	/	683.5
=	62.33 %

where Working Capital is:

	Working Capital		(Q: Jun. 2025 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(2502	+	267	+	1243)	-	(5909	+	0	+	137)
=	-2034

	Working Capital		(Q: Dec. 2025 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(2299	+	263	+	1623)	-	(5521	+	0	+	1055)
=	-2391

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Universal Music Group NV's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %	=	EBIT (TTM)	/	Enterprise Value (Q: Dec. 2025 )
	=	2223	/	36774.058
	=	6.05 %

* 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.

Universal Music Group NV EBIT Related Terms

Universal Music Group NV EBIT Historical Data

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The historical data trend for Universal Music Group NV's EBIT can be seen below:

Universal Music Group NV EBIT Chart

Universal Music Group NV Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

EBIT

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1,208.00

968.00

1,834.00

3,006.00

2,223.00

Universal Music Group NV Semi-Annual Data
	Dec17	Dec18	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24	Jun25	Dec25
EBIT	Get a 7-Day Free Trial										928.00	1,328.00	1,678.00	2,010.00	213.00

CHIX:UMGA vs NFLX, DIS, WBD: EBIT Comparison

For the Entertainment subindustry, Universal Music Group NV's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Universal Music Group NV's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Universal Music Group NV's EV-to-EBIT falls into.

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75GF Score

Universal Music Group NV CHIX:UMGA

EBIT is just one metric. See GF Score™, valuation, warning signs, and more.

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Universal Music Group NV EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Dec. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was €2,223 Mil.

Frequently Asked Questions Learn more about EBIT →

What does a EBIT of €2,223 Mil mean?

Universal Music Group NV (CHIX:UMGA) has a EBIT of €2,223 Mil as of Dec. 2025. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Universal Music Group NV.

Is Universal Music Group NV's EBIT too high?

Universal Music Group NV's current EBIT is €2,223 Mil. Overall, Universal Music Group NV has a GF Score™ of 75/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.

How does Universal Music Group NV's EBIT compare to NFLX and DIS?

Universal Music Group NV's EBIT of €2,223 Mil can be compared against companies in the Media - Diversified industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good EBIT for a Media - Diversified company?

A good EBIT depends on the Media - Diversified industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high EBIT mean?

A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Universal Music Group NV. Universal Music Group NV's current EBIT is €2,223 Mil. 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 €27.62, compared to a current price of €18.11 — trading 34.4% below its estimated fair value. The current EBIT is €2,223 Mil. Universal Music Group NV's overall GF Score™ is 75/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is EBIT calculated?

EBIT is calculated from a company's financial statements. For Universal Music Group NV (CHIX:UMGA), the current EBIT is €2,223 Mil as of Dec. 2025. 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 €18.11 is trading 34.4% below its estimated GF Value™ of €27.62. GuruFocus considers Universal Music Group NV to be Possible Value Trap.

Key valuation signals for CHIX:UMGA:

EBIT: €2,223 Mil
GF Value™: €27.62 vs. price of €18.11 (34.4% below fair value)
GF Score™: 75/100 with 4 warning signs

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 Group NV Business Description

Industry Communication Services Media - Diversified

Comparable Companies XAMS:BNJ XAMS:AJAX NFLX DIS WBD LYV FOXA FWONA ROKU XPAR:BOL WMG TKO NWSA PSKY SIRI LLYVA MSGS XPAR:ODET XTER:EVD TSE:9602

Other Exchanges UNVGY:USA UMGNF:USA UMG:Netherlands 0VD:Germany UMG:Austria

Address s-Gravelandseweg 80, Hilversum, NH, NLD, 1217 EW

Website https://www.universalmusic.com

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.

75GF Score

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EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€18.11

Price

€27.62

GF Value

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