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Universal Music Group NVCHIX:UMGA 63 EV-to-EBIT is 50.27 as of Aug. 20, 2026, which is 78% above its 10-year median of 28.29. GuruFocus rates CHIX:UMGA with a GF Score™ of 63/100 and a GF Value™ of €27.52 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 644 Media - Diversified companies, Universal Music Group NV ranks worse than 87.89% on this metric.
Universal Music Group NV (CHIX:UMGa) EV-to-EBIT Explanation
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
Universal Music Group NV's Enterprise Value for the quarter that ended in Jun. 2026 was €38,857 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Universal Music Group NV's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 was €644 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.
Universal Music Group NV EV-to-EBIT Related Terms
Universal Music Group NV EV-to-EBIT 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: EV-to-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.
Universal Music Group NV's current Enterprise Value is €32,376 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Universal Music Group NV's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 was €644 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.
Universal Music Group NV (CHIX:UMGA) has a EV-to-EBIT of 50.27 as of Aug. 20, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Universal Music Group NV and its competitors. This is 78% above median its historical median of 28.29. Over the past decade, Universal Music Group NV's EV-to-EBIT has ranged from 13.54 to 51.12. According to the industry distribution chart, Universal Music Group NV ranks #566 out of 644 companies in the Media - Diversified industry, placing it in the top 87.9%.
Is Universal Music Group NV's EV-to-EBIT too high?
Universal Music Group NV's current EV-to-EBIT of 50.27 is 78% above median its 10-year median of 28.29. Over the past 10 years, this metric has ranged from a low of 13.54 to a high of 51.12. The Media - Diversified industry median EV-to-EBIT is 10.48. Universal Music Group NV's value of 50.27 is 379.7% above this industry median. Based on the distribution chart, Universal Music Group NV ranks #566 out of 644 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 63/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Universal Music Group NV's EV-to-EBIT compare to NFLX and DIS?
According to the Media - Diversified industry distribution chart, Universal Music Group NV ranks #566 out of 644 companies for EV-to-EBIT. This places Universal Music Group NV in the lower half of its industry. The industry median EV-to-EBIT is 10.48. Universal Music Group NV's value of 50.27 is 379.7% above this benchmark. Historically, Universal Music Group NV's own EV-to-EBIT has ranged from 13.54 to 51.12 over the past decade. While the company's 10-year median is 28.29 vs. the industry median of 10.48, 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 EV-to-EBIT for a Media - Diversified company?
The median EV-to-EBIT among Media - Diversified companies is 10.48, based on 644 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Universal Music Group NV's current EV-to-EBIT of 50.27 is 379.7% 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 EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Universal Music Group NV and its competitors. For the Media - Diversified industry, the median EV-to-EBIT is 10.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Universal Music Group NV's current EV-to-EBIT is 50.27, which is 78% above median its own 10-year median of 28.29. 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 €27.52, compared to a current price of €14.90 — trading 45.9% below its estimated fair value. The current EV-to-EBIT is 50.27, which is 78% above median its 10-year median of 28.29 and 379.7% above the Media - Diversified industry median of 10.48. Universal Music Group NV's overall GF Score™ is 63/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Universal Music Group NV (CHIX:UMGA), the current EV-to-EBIT is 50.27 as of Aug. 20, 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 45.9% below its estimated GF Value™ of €27.52.
GuruFocus considers Universal Music Group NV to be Possible Value Trap.
Key valuation signals for CHIX:UMGA:
EV-to-EBIT: 50.27 (78% above median its 10-year median of 28.29)
GF Value™: €27.52 vs. price of €14.90 (45.9% below fair value)
Industry Position: 379.7% above the Media - Diversified median (#566 of 644)
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.
63GF Score
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