The zones of discrimination for M-Score is as such:
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Good Sign:
Beneish M-Score -2.3 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
The historical rank and industry rank for Warner Music Group's Beneish M-Score or its related term are showing as below:
WMG'
s Beneish M-Score Range Over the Past 10 Years
Min: -3.19 Med: -2.53 Max: -2.04
Current: -2.3
During the past 13 years, the highest Beneish M-Score of Warner Music Group was -2.04. The lowest was -3.19. And the median was -2.53.
Warner Music Group Beneish M-Score Related Terms
Warner Music Group Beneish M-Score Historical Data
* Premium members only.
The historical data trend for Warner Music Group's Beneish M-Score 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.
WMG vs TKO, NWSA, ROKU: Beneish M-Score Comparison
For the Entertainment subindustry, Warner Music Group's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Warner Music Group's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Warner Music Group's Beneish M-Score falls into.
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.
The M-Score Variables:
The M-score of Warner Music Group for today is based on a combination of the following eight different indices:
M
=
-4.84
+
0.92 * DSRI
+
0.528 * GMI
+
0.404 * AQI
+
0.892 * SGI
+
0.115 * DEPI
=
-4.84
+
0.92 * 1.0978
+
0.528 * 1.0221
+
0.404 * 0.9826
+
0.892 * 1.1255
+
0.115 * 0.7836
-
0.172 * SGAI
+
4.679 * TATA
-
0.327 * LVGI
-
0.172 * 0.8792
+
4.679 * -0.005183
-
0.327 * 0.9969
=
-2.30
* 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.
Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.
DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.
DEPI
=
(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))
/
(Depreciation_t / (Depreciaton_t + PPE_t))
=
(339 / (339 + 720))
/
(402 / (402 + 582))
=
0.320113
/
0.408537
=
0.7836
Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.
6. SGAI = Sales, General and Administrative expenses Index
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
TATA
=
(IncomefromContinuingOperations_t
-
CashFlowsfromOperations_t)
/
TotalAssets_t
=
(NetIncome_t - NonOperatingIncome_t
-
CashFlowsfromOperations_t)
/
TotalAssets_t
=
(452 - -336
-
843)
/
10612
=
-0.005183
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Warner Music Group has a M-score of -2.30 suggests that the company is unlikely to be a manipulator.
Warner Music Group (WMG) has a Beneish M-Score of -2.30 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Warner Music Group and its competitors. According to the industry distribution chart, Warner Music Group ranks #667 out of 989 companies in the Media - Diversified industry, placing it in the top 67.4%.
Is Warner Music Group's Beneish M-Score too high?
Warner Music Group's current Beneish M-Score is -2.30. Based on the distribution chart, Warner Music Group ranks #667 out of 989 companies in the Media - Diversified industry, which is below the industry midpoint. 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 Beneish M-Score compare to TKO and NWSA?
According to the Media - Diversified industry distribution chart, Warner Music Group ranks #667 out of 989 companies for Beneish M-Score. This places Warner Music Group in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Media - Diversified company?
A good Beneish M-Score depends on the Media - Diversified industry context. However, Beneish M-Score 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 Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Warner Music Group and its competitors. Warner Music Group's current Beneish M-Score is -2.30. 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 Beneish M-Score is -2.30. 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 Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Warner Music Group (WMG), the current Beneish M-Score is -2.30 as of Jun. 25, 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:
Beneish M-Score: -2.30
GF Value™: $35.06 vs. price of $26.93 (23.2% below fair value)
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 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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