Universal Music Group NVCHIX:UMGA +1.62%75 Pretax Margin % is 2.14% as of Dec. 2025, which is 87% below its 10-year median of 16.51. GuruFocus rates CHIX:UMGA with a GF Score™ of 75/100 and a GF Value™ of €27.66 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 1,016 Media - Diversified companies, Universal Music Group NV ranks better than 87.2% on this metric.
The historical rank and industry rank for Universal Music Group NV's Pretax Margin % or its related term are showing as below:
CHIX:UMGa'
s Pretax Margin % Range Over the Past 10 Years
Min: 8.7 Med: 16.51 Max: 24.26
Current: 16.68
CHIX:UMGa's Pretax Margin % is ranked better than 87.2% of 1016
companies
in the Media - Diversified industry
Industry Median: 1.975
vs CHIX:UMGa: 16.68
Universal Music Group NV (CHIX:UMGa) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Universal Music Group NV Pretax Margin % Related Terms
Universal Music Group NV Pretax Margin % 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: Pretax Margin % Comparison
For the Entertainment subindustry, Universal Music Group NV's Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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 Pretax Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Universal Music Group NV's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Universal Music Group NV's Pretax Margin % 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.
Universal Music Group NV (CHIX:UMGA) has a Pretax Margin % of 2.14% as of Dec. 2025. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Universal Music Group NV and its competitors. This is 87% below median its historical median of 16.51. Over the past decade, Universal Music Group NV's Pretax Margin % has ranged from 8.70 to 24.26. According to the industry distribution chart, Universal Music Group NV ranks #130 out of 1016 companies in the Media - Diversified industry, placing it in the top 12.8%.
Is Universal Music Group NV's Pretax Margin % too high?
Universal Music Group NV's current Pretax Margin % of 2.14% is 87% below median its 10-year median of 16.51. Over the past 10 years, this metric has ranged from a low of 8.70 to a high of 24.26. The Media - Diversified industry median Pretax Margin % is 1.98. Universal Music Group NV's value of 2.14% is 8.4% above this industry median. Based on the distribution chart, Universal Music Group NV ranks #130 out of 1016 companies in the Media - Diversified industry, which is in the top quartile — a strong position relative to peers. 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 Pretax Margin % compare to NFLX and DIS?
According to the Media - Diversified industry distribution chart, Universal Music Group NV ranks #130 out of 1016 companies for Pretax Margin %. This places Universal Music Group NV in the top 13% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 1.98. Universal Music Group NV's value of 2.14% is 8.4% above this benchmark. Historically, Universal Music Group NV's own Pretax Margin % has ranged from 8.70 to 24.26 over the past decade. While the company's 10-year median is 16.51 vs. the industry median of 1.98, 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 Pretax Margin % for a Media - Diversified company?
The median Pretax Margin % among Media - Diversified companies is 1.98, based on 1,016 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Universal Music Group NV's current Pretax Margin % of 2.14% is 8.4% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Universal Music Group NV and its competitors. For the Media - Diversified industry, the median Pretax Margin % is 1.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Universal Music Group NV's current Pretax Margin % is 2.14%, which is 87% below median its own 10-year median of 16.51. 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 €27.66, compared to a current price of €18.40 — trading 33.5% below its estimated fair value. The current Pretax Margin % is 2.14%, which is 87% below median its 10-year median of 16.51 and 8.4% above the Media - Diversified industry median of 1.98. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Universal Music Group NV (CHIX:UMGA), the current Pretax Margin % is 2.14% 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 €18.40 is trading 33.5% below its estimated GF Value™ of €27.66.
GuruFocus considers Universal Music Group NV to be Possible Value Trap.
Key valuation signals for CHIX:UMGA:
Pretax Margin %: 2.14% (87% below median its 10-year median of 16.51)
GF Value™: €27.66 vs. price of €18.40 (33.5% below fair value)
Industry Position: 8.4% above the Media - Diversified median (#130 of 1016)
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
Get the complete analysis for CHIX:UMGA
Pretax Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
CHIX:UMGA has been successfully added to your 
