The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Warner Music Group's share price is $31.97.
Warner Music Group's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $12.20. Hence, Warner Music Group's PS Ratio for today is 2.62.
The historical rank and industry rank for Warner Music Group's PS Ratio or its related term are showing as below:
WMG'
s PS Ratio Range Over the Past 10 Years
Min: 1.98 Med: 3.05 Max: 4.79
Current: 2.6
During the past 13 years, Warner Music Group's highest PS Ratio was 4.79. The lowest was 1.98. And the median was 3.05.
WMG's PS Ratio is ranked worse than 73.63% of 1020
companies
in the Media - Diversified industry
Industry Median: 1.21
vs WMG: 2.60
Warner Music Group's Revenue per Sharefor the
three
months ended in Dec. 2023 was $3.39.
Its Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $12.20.
During the past 12 months, the average Revenue per Share Growth Rate of Warner Music Group was 8.40% per year.
During the past 3 years, the average Revenue per Share Growth Rate was 9.80% per year.
During the past 5 years, the average Revenue per Share Growth Rate was 8.50% per year.
During the past 10 years, the average Revenue per Share Growth Rate was 8.20% per year.
During the past 13 years, Warner Music Group's highest 3-Year average Revenue per Share Growth Rate was 87.30% per year. The lowest was -36.30% per year. And the median was 6.60% per year.
Back to Basics: PS Ratio
Warner Music Group PS Ratio Historical Data
The historical data trend for Warner Music Group's PS Ratio 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.
Competitive Comparison of Warner Music Group's PS Ratio
For the Entertainment subindustry, Warner Music Group's PS Ratio, along with its competitors' market caps and PS Ratio 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's PS Ratio Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Warner Music Group's PS Ratio distribution charts can be found below:
* The bar in red indicates where Warner Music Group's PS Ratio falls into.
Warner Music Group PS Ratio Calculation
The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.
Warner Music Group's PS Ratio for today is calculated as
Warner Music Group's Share Price of today is $31.97.
Warner Music Group's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $12.20.
* 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.
It can also be calculated from the numbers for the whole company:
The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.
When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.
The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.
Warner Music Group PS Ratio Related Terms
Thank you for viewing the detailed overview of Warner Music Group's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Warner Music Group (Warner Music Group) Business Description
Warner Music Group is the third largest of the three major global record labels, with Vivendi's Universal Music in first and Sony Music in second. Warner's larger segment, recorded music, consists of iconic labels like Atlantic Records, Warner Records, and Parlophone Records and popular artists such as Ed Sheeran, Cardi B, Dua Lipa, and Blake Shelton. Warner Chappell, the firm's publishing arm, is the home to over 65,000 composers and songwriters with over 1 million copyrights represented. Warner is controlled by Access Industries, which owns an 84% economic interest and 99% of voting rights.
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