Warner Music GroupHAM:WA4 +1.21%79 Pretax Margin % is 14.67% as of Mar. 2026, which is 84% above its 10-year median of 7.96. 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 1,016 Media - Diversified companies, Warner Music Group ranks better than 71.26% on this metric.
The historical rank and industry rank for Warner Music Group's Pretax Margin % or its related term are showing as below:
HAM:WA4'
s Pretax Margin % Range Over the Past 10 Years
Min: -10.02 Med: 7.96 Max: 12.5
Current: 8.35
HAM:WA4's Pretax Margin % is ranked better than 71.26% of 1016
companies
in the Media - Diversified industry
Industry Median: 1.975
vs HAM:WA4: 8.35
Warner Music Group (HAM:WA4) 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.
Warner Music Group Pretax Margin % Related Terms
Warner Music Group Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Warner Music Group's Pretax Margin % 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.
HAM:WA4 vs NWSA, TKO, PSKY: Pretax Margin % Comparison
For the Entertainment subindustry, Warner Music Group'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.
Warner Music Group Pretax Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Warner Music Group's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Warner Music Group'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.
Warner Music Group (HAM:WA4) has a Pretax Margin % of 14.67% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Warner Music Group and its competitors. This is 84% above median its historical median of 7.96. According to the industry distribution chart, Warner Music Group ranks #292 out of 1016 companies in the Media - Diversified industry, placing it in the top 28.7%.
Is Warner Music Group's Pretax Margin % too high?
Warner Music Group's current Pretax Margin % of 14.67% is 84% above median its 10-year median of 7.96. The Media - Diversified industry median Pretax Margin % is 1.98. Warner Music Group's value of 14.67% is 642.8% above this industry median. Based on the distribution chart, Warner Music Group ranks #292 out of 1016 companies in the Media - Diversified industry, which is above 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 Pretax Margin % compare to NWSA and TKO?
According to the Media - Diversified industry distribution chart, Warner Music Group ranks #292 out of 1016 companies for Pretax Margin %. This puts Warner Music Group in the upper half of its industry. The industry median Pretax Margin % is 1.98. Warner Music Group's value of 14.67% is 642.8% above this benchmark. While the company's 10-year median is 7.96 vs. the industry median of 1.98, Warner Music Group 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. Warner Music Group's current Pretax Margin % of 14.67% is 642.8% 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 Warner Music Group 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. Warner Music Group's current Pretax Margin % is 14.67%, which is 84% above median its own 10-year median of 7.96. 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 Pretax Margin % of 14.67%. 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 Pretax Margin % is 14.67%, which is 84% above median its 10-year median of 7.96 and 642.8% above the Media - Diversified industry median of 1.98. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Warner Music Group (HAM:WA4), the current Pretax Margin % is 14.67% 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:
Pretax Margin %: 14.67% (84% above median its 10-year median of 7.96)
GF Value™: €30.61 vs. price of €23.50 (23.2% below fair value)
Industry Position: 642.8% above the Media - Diversified median (#292 of 1016)
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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