Warner Music GroupHAM:WA4 +1.21%79 Interest Coverage is 6.59 as of Mar. 2026, which is 32% above its 10-year median of 4.99. GuruFocus rates HAM:WA4 with a GF Score™ of 79/100 and a GF Value™ of €30.61. The stock has 2 warning signs investors should review. Among 609 Media - Diversified companies, Warner Music Group ranks worse than 60.59% 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. Warner Music Group's
Operating Income
for the
three
months ended in Mar. 2026 was €234 Mil. Warner Music Group's Interest Expense for the
three
months ended in Mar. 2026 was €-35 Mil.
Warner Music Group's interest coverage for the quarter that ended in Mar. 2026 was 6.59.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Warner Music Group's Interest Coverage or its related term are showing as below:
HAM:WA4'
s Interest Coverage Range Over the Past 10 Years
Min: 1.24 Med: 4.99 Max: 6.41
Current: 6.41
HAM:WA4's Interest Coverage is ranked worse than 60.59% of 609
companies
in the Media - Diversified industry
Industry Median: 11.88
vs HAM:WA4: 6.41
Warner Music Group (HAM:WA4) 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 .
Warner Music Group Interest Coverage Related Terms
Warner Music Group Interest Coverage Historical Data
* Premium members only.
The historical data trend for Warner Music Group's Interest Coverage 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.
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.
HAM:WA4 vs TKO, NWSA, ROKU: Interest Coverage Comparison
For the Entertainment subindustry, Warner Music Group'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.
Warner Music Group Interest Coverage vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Warner Music Group's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Warner Music Group's Interest Coverage falls into.
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.
Warner Music Group (HAM:WA4) has a Interest Coverage of 6.59 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Warner Music Group and its competitors. This is 32% above median its historical median of 4.99. Over the past decade, Warner Music Group's Interest Coverage has ranged from 1.24 to 6.41. According to the industry distribution chart, Warner Music Group ranks #369 out of 609 companies in the Media - Diversified industry, placing it in the top 60.6%.
Is Warner Music Group's Interest Coverage too high?
Warner Music Group's current Interest Coverage of 6.59 is 32% above median its 10-year median of 4.99. Over the past 10 years, this metric has ranged from a low of 1.24 to a high of 6.41. The Media - Diversified industry median Interest Coverage is 11.88. Warner Music Group's value of 6.59 is 44.5% below this industry median. Based on the distribution chart, Warner Music Group ranks #369 out of 609 companies in the Media - Diversified industry, which is below the industry midpoint. Overall, Warner Music Group has a GF Score™ of 79/100, reflecting its overall financial health beyond just this single metric.
How does Warner Music Group's Interest Coverage compare to TKO and NWSA?
According to the Media - Diversified industry distribution chart, Warner Music Group ranks #369 out of 609 companies for Interest Coverage. This places Warner Music Group in the lower half of its industry. The industry median Interest Coverage is 11.88. Warner Music Group's value of 6.59 is 44.5% below this benchmark. Historically, Warner Music Group's own Interest Coverage has ranged from 1.24 to 6.41 over the past decade. While the company's 10-year median is 4.99 vs. the industry median of 11.88, Warner Music Group has consistently been below 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 11.88, based on 609 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. Warner Music Group's current Interest Coverage of 6.59 is 44.5% below 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 Warner Music Group and its competitors. For the Media - Diversified industry, the median Interest Coverage is 11.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Warner Music Group's current Interest Coverage is 6.59, which is 32% above median its own 10-year median of 4.99. 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?
Warner Music Group (HAM:WA4) has a current Interest Coverage of 6.59. The stock's GF Value™ is €30.61, compared to a current price of €23.50 — trading 23.2% below its estimated fair value. The current Interest Coverage is 6.59, which is 32% above median its 10-year median of 4.99 and 44.5% below the Media - Diversified industry median of 11.88. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Warner Music Group (HAM:WA4), the current Interest Coverage is 6.59 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 (HAM:WA4) Overvalued in 2026?
Based on GuruFocus' analysis, Warner Music Group stock appears to be undervalued.
The current stock price of €23.50 is trading 23.2% below its estimated GF Value™ of €30.61.
Key valuation signals for HAM:WA4:
Interest Coverage: 6.59 (32% above median its 10-year median of 4.99)
GF Value™: €30.61 vs. price of €23.50 (23.2% below fair value)
Industry Position: 44.5% below the Media - Diversified median (#369 of 609)
No single metric tells the full story. See the HAM: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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