Universal Music Group NVCHIX:UMGA 75 Interest Coverage is 16.82 as of Dec. 2025, which is 31% below its 10-year median of 24.44. GuruFocus rates CHIX:UMGA with a GF Score™ of 75/100 and a GF Value™ of €27.36 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 605 Media - Diversified companies, Universal Music Group NV ranks better than 56.2% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Universal Music Group NV's
Operating Income
for the
six
months ended in Dec. 2025 was €1,194 Mil. Universal Music Group NV's Interest Expense for the
six
months ended in Dec. 2025 was €-71 Mil.
Universal Music Group NV's interest coverage for the quarter that ended in Dec. 2025 was 16.82.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Universal Music Group NV's Interest Coverage or its related term are showing as below:
CHIX:UMGa'
s Interest Coverage Range Over the Past 10 Years
Min: 12.49 Med: 24.44 Max: 39.44
Current: 15.63
CHIX:UMGa's Interest Coverage is ranked better than 56.2% of 605
companies
in the Media - Diversified industry
Industry Median: 11.65
vs CHIX:UMGa: 15.63
Universal Music Group NV (CHIX:UMGa) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Universal Music Group NV Interest Coverage Related Terms
Universal Music Group NV Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
CHIX:UMGA vs NFLX, DIS, WBD: Interest Coverage Comparison
For the Entertainment subindustry, Universal Music Group NV's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Universal Music Group NV's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Universal Music Group NV's Interest Coverage falls into.
Universal Music Group NV Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 Interest Coverage of 16.82 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Universal Music Group NV and its competitors. This is 31% below median its historical median of 24.44. Over the past decade, Universal Music Group NV's Interest Coverage has ranged from 12.49 to 39.44. According to the industry distribution chart, Universal Music Group NV ranks #265 out of 605 companies in the Media - Diversified industry, placing it in the top 43.8%.
Is Universal Music Group NV's Interest Coverage too high?
Universal Music Group NV's current Interest Coverage of 16.82 is 31% below median its 10-year median of 24.44. Over the past 10 years, this metric has ranged from a low of 12.49 to a high of 39.44. The Media - Diversified industry median Interest Coverage is 11.65. Universal Music Group NV's value of 16.82 is 44.4% above this industry median. Based on the distribution chart, Universal Music Group NV ranks #265 out of 605 companies in the Media - Diversified industry, which is above the industry midpoint. 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 Interest Coverage compare to NFLX and DIS?
According to the Media - Diversified industry distribution chart, Universal Music Group NV ranks #265 out of 605 companies for Interest Coverage. This puts Universal Music Group NV in the upper half of its industry. The industry median Interest Coverage is 11.65. Universal Music Group NV's value of 16.82 is 44.4% above this benchmark. Historically, Universal Music Group NV's own Interest Coverage has ranged from 12.49 to 39.44 over the past decade. While the company's 10-year median is 24.44 vs. the industry median of 11.65, 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 Interest Coverage for a Media - Diversified company?
The median Interest Coverage among Media - Diversified companies is 11.65, based on 605 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Universal Music Group NV's current Interest Coverage of 16.82 is 44.4% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Universal Music Group NV and its competitors. For the Media - Diversified industry, the median Interest Coverage is 11.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Universal Music Group NV's current Interest Coverage is 16.82, which is 31% below median its own 10-year median of 24.44. 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 €27.36, compared to a current price of €18.11 — trading 33.8% below its estimated fair value. The current Interest Coverage is 16.82, which is 31% below median its 10-year median of 24.44 and 44.4% above the Media - Diversified industry median of 11.65. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Universal Music Group NV (CHIX:UMGA), the current Interest Coverage is 16.82 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 33.8% below its estimated GF Value™ of €27.36.
GuruFocus considers Universal Music Group NV to be Possible Value Trap.
Key valuation signals for CHIX:UMGA:
Interest Coverage: 16.82 (31% below median its 10-year median of 24.44)
GF Value™: €27.36 vs. price of €18.11 (33.8% below fair value)
Industry Position: 44.4% above the Media - Diversified median (#265 of 605)
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.
75GF Score
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