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In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
Warner Music Group's Net-Net Working Capital for the quarter that ended in Jun. 2026 was €-13.27.
The industry rank for Warner Music Group's Net-Net Working Capital or its related term are showing as below:
FRA:WA4's Price-to-Net-Net-Working-Capital is not ranked *
in the Media - Diversified industry.
Industry Median: 4.38 * Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.
Warner Music Group (FRA:WA4) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
Warner Music Group Net-Net Working Capital Related Terms
Warner Music Group Net-Net Working Capital Historical Data
* Premium members only.
The historical data trend for Warner Music Group's Net-Net Working Capital 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.
FRA:WA4 vs TKO, NWSA, SIRI: Net-Net Working Capital Comparison
For the Entertainment subindustry, Warner Music Group's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital 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 Price-to-Net-Net-Working-Capital vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Warner Music Group's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where Warner Music Group's Price-to-Net-Net-Working-Capital falls into.
* 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.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of €-13.27 mean?
Warner Music Group (FRA:WA4) has a Net-Net Working Capital of €-13.27 as of Jun. 2026. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Warner Music Group According to the industry distribution chart, Warner Music Group ranks #999999 out of 383 companies in the Media - Diversified industry.
Is Warner Music Group's Net-Net Working Capital too high?
Warner Music Group's current Net-Net Working Capital is €-13.27. Based on the distribution chart, Warner Music Group ranks #999999 out of 383 companies in the Media - Diversified industry, which is in the bottom quartile relative to peers. Overall, Warner Music Group has a GF Score™ of 77/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Warner Music Group's Net-Net Working Capital compare to TKO and NWSA?
According to the Media - Diversified industry distribution chart, Warner Music Group ranks #999999 out of 383 companies for Net-Net Working Capital. This places Warner Music Group in the lower half of its industry. The industry median Net-Net Working Capital is 4.38. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for a Media - Diversified company?
The median Net-Net Working Capital among Media - Diversified companies is 4.38, based on 383 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital 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 Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Warner Music Group For the Media - Diversified industry, the median Net-Net Working Capital is 4.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Warner Music Group's current Net-Net Working Capital is €-13.27. 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 (FRA:WA4) is currently considered Modestly Undervalued. The stock's GF Value™ is €31.07, compared to a current price of €22.79 — trading 26.6% below its estimated fair value. The current Net-Net Working Capital is €-13.27. Warner Music Group's overall GF Score™ is 77/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For Warner Music Group (FRA:WA4), the current Net-Net Working Capital is €-13.27 as of Jun. 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 (FRA:WA4) Overvalued in 2026?
Based on GuruFocus' analysis, Warner Music Group stock appears to be undervalued.
The current stock price of €22.79 is trading 26.6% below its estimated GF Value™ of €31.07.
GuruFocus considers Warner Music Group to be Modestly Undervalued.
Key valuation signals for FRA:WA4:
Net-Net Working Capital: €-13.27
GF Value™: €31.07 vs. price of €22.79 (26.6% below fair value)
No single metric tells the full story. See the FRA: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.
77GF Score
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