Universal Music Group NV (CHIX:UMGA) GF Value Rank: 2 (As of Aug. 03, 2026) — 71% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
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Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

CHIX:UMGA Universal Music Group NV CHIX:UMGA
70 GF Score
Price €15.56
GF Value €27.72
Valuation Possible Value Trap
! 4 Warning Signs
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What is Universal Music Group NV GF Value Rank?

Universal Music Group NV CHIX:UMGA -15.43% 70 GF Value Rank is 2 as of Aug. 03, 2026, which is 71% below its 10-year median of 7.00. GuruFocus rates CHIX:UMGA with a GF Score™ of 70/100 and a GF Value™ of €27.72 (Possible Value Trap). The stock has 4 warning signs investors should review.

Universal Music Group NV has the GF Value Rank of 2.

GF Value Rank evaluates the exclusive GuruFocus valuation and performance of a stock, rated on a scale from 1 to 10. It is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

A higher score indicates a stock with a relatively low valuation and substantial potential for outperformance. Conversely, a lower score often reflects stocks that are either highly overvalued or deeply undervalued, both of which tend to underperform.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Universal Music Group NV GF Value Rank Related Terms

CHIX:UMGA vs NFLX, DIS, WBD: GF Value Rank Comparison

For the Entertainment subindustry, Universal Music Group NV's GF Value Rank, along with its competitors' market caps and GF Value Rank 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 GF Value Rank vs Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Universal Music Group NV's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Universal Music Group NV's GF Value Rank falls into.


CHIX:UMGA
70GF Score
Universal Music Group NV CHIX:UMGA
GF Value Rank is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about GF Value Rank →
What does a GF Value Rank of 2 mean?
Universal Music Group NV (CHIX:UMGA) has a GF Value Rank of 2 as of Aug. 03, 2026. GF Value Rank is given based on historical multiples along with past returns, growth and future estimates of the business' performance. View historical data on Universal Music Group NV and its competitors. This is 71% below median its historical median of 7.00. Over the past decade, Universal Music Group NV's GF Value Rank has ranged from 2.00 to 10.00.
Is Universal Music Group NV's GF Value Rank too high?
Universal Music Group NV's current GF Value Rank of 2 is 71% below median its 10-year median of 7.00. Over the past 10 years, this metric has ranged from a low of 2.00 to a high of 10.00. Overall, Universal Music Group NV has a GF Score™ of 70/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Universal Music Group NV's GF Value Rank compare to NFLX and DIS?
Universal Music Group NV's GF Value Rank of 2 can be compared against companies in the Media - Diversified industry. Historically, Universal Music Group NV's own GF Value Rank has ranged from 2.00 to 10.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good GF Value Rank for a Media - Diversified company?
A good GF Value Rank depends on the Media - Diversified industry context. However, GF Value Rank 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 GF Value Rank mean?
A high GF Value Rank can signal that a stock is expensive relative to its fundamentals. GF Value Rank is given based on historical multiples along with past returns, growth and future estimates of the business' performance. View historical data on Universal Music Group NV and its competitors. Universal Music Group NV's current GF Value Rank is 2, which is 71% below median its own 10-year median of 7.00. 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 €27.72, compared to a current price of €15.56 — trading 43.9% below its estimated fair value. The current GF Value Rank is 2, which is 71% below median its 10-year median of 7.00. Universal Music Group NV's overall GF Score™ is 70/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is GF Value Rank calculated?
GF Value Rank is calculated from a company's financial statements. For Universal Music Group NV (CHIX:UMGA), the current GF Value Rank is 2 as of Aug. 03, 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 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 €15.56 is trading 43.9% below its estimated GF Value™ of €27.72. GuruFocus considers Universal Music Group NV to be Possible Value Trap.

Key valuation signals for CHIX:UMGA:

  • GF Value Rank: 2 (71% below median its 10-year median of 7.00)
  • GF Value™: €27.72 vs. price of €15.56 (43.9% below fair value)
  • GF Score™: 70/100 with 4 warning signs

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 Group NV Business Description

Address s-Gravelandseweg 80, Hilversum, NH, NLD, 1217 EW
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.
70GF Score

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GF Value Rank is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€15.56
Price
€27.72
GF Value