WMG (Warner Music Group) EBIT: $767 Mil (TTM As of Mar. 2026)


WMG Warner Music Group Corp WMG
79 GF Score
Price $26.93
GF Value $35.06
Valuation Modestly Undervalued
! 2 Warning Signs
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What is Warner Music Group EBIT?

Warner Music Group WMG +0.04% 79 EBIT is $767 Mil as of Mar. 2026. GuruFocus rates WMG with a GF Score™ of 79/100 and a GF Value™ of $35.06 (Modestly Undervalued). The stock has 2 warning signs investors should review.

Warner Music Group's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was $295 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was $767 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Warner Music Group's annualized ROC % for the quarter that ended in Mar. 2026 was 9.94%. Warner Music Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 200.17%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Warner Music Group's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 4.15%.

Warner Music Group  (NAS:WMG) EBIT Explanation

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

Warner Music Group's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=1080 * ( 1 - 28.74% )/( (7458 + 8032)/ 2 )
=769.608/7745
=9.94 %

where

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))
=10011 - 3845 - ( 751 - max(0, 4310 - 3018+751))
=7458

Invested Capital(Q: Mar. 2026 )
=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))
=10612 - 3781 - ( 741 - max(0, 4421 - 3220+741))
=8032

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

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

Warner Music Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1180/( ( (597 + max(-1996, 0)) + (582 + max(-1894, 0)) )/ 2 )
=1180/( ( 597 + 582 )/ 2 )
=1180/589.5
=200.17 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1374 + 60 + 833) - (3845 + 246 + 172)
=-1996

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1505 + 65 + 909) - (3781 + 451 + 141)
=-1894

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

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

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

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=767/18481.106
=4.15 %

* 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 EBIT Related Terms

Warner Music Group EBIT Historical Data

* Premium members only.

The historical data trend for Warner Music Group's EBIT 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.

Warner Music Group EBIT Chart

Warner Music Group Annual Data
Trend Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24 Sep25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 578.00 865.00 750.00 762.00 652.00

Warner Music Group Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT 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 104.00 32.00 149.00 291.00 295.00

WMG vs TKO, NWSA, ROKU: EBIT Comparison

For the Entertainment subindustry, Warner Music Group'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.

Warner Music Group EV-to-EBIT vs Media - Diversified Industry

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

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


WMG
79GF Score
Warner Music Group Corp WMG
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Warner Music Group 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 Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $767 Mil.

* 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.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of $767 Mil mean?
Warner Music Group (WMG) has a EBIT of $767 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Warner Music Group.
Is Warner Music Group's EBIT too high?
Warner Music Group's current EBIT is $767 Mil. 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 EBIT compare to TKO and NWSA?
Warner Music Group's EBIT of $767 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 Warner Music Group. Warner Music Group's current EBIT is $767 Mil. 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 (WMG) is currently considered Modestly Undervalued. The stock's GF Value™ is $35.06, compared to a current price of $26.93 — trading 23.2% below its estimated fair value. The current EBIT is $767 Mil. 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 EBIT calculated?
EBIT is calculated from a company's financial statements. For Warner Music Group (WMG), the current EBIT is $767 Mil 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 (WMG) Overvalued in 2026?

Based on GuruFocus' analysis, Warner Music Group stock appears to be undervalued. The current stock price of $26.93 is trading 23.2% below its estimated GF Value™ of $35.06. GuruFocus considers Warner Music Group to be Modestly Undervalued.

Key valuation signals for WMG:

  • EBIT: $767 Mil
  • GF Value™: $35.06 vs. price of $26.93 (23.2% below fair value)
  • GF Score™: 79/100 with 2 warning signs

No single metric tells the full story. See the WMG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

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.
79GF Score

Get the complete analysis for WMG

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

$26.93
Price
$35.06
GF Value