WMG (Warner Music Group) ROCE %: 19.85% (As of Mar. 2026)


WMG Warner Music Group Corp WMG
79 GF Score
Price $26.93
GF Value $35.06
Valuation Modestly Undervalued
! 2 Warning Signs
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What is Warner Music Group ROCE %?

Warner Music Group WMG +0.04% 79 ROCE % is 19.85% as of Mar. 2026. GuruFocus rates WMG with a GF Score™ of 79/100 and a GF Value™ of $35.06 (Modestly Undervalued). The stock has 2 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Warner Music Group's annualized ROCE % for the quarter that ended in Mar. 2026 was 19.85%.

Warner Music Group  (NAS:WMG) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Warner Music Group ROCE % Related Terms

Warner Music Group ROCE % Historical Data

* Premium members only.

The historical data trend for Warner Music Group's ROCE % 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.

Warner Music Group ROCE % Chart

Warner Music Group Annual Data
Trend Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24 Sep25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 14.91 20.30 15.85 14.85 11.98

Warner Music Group Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.65 2.25 10.50 20.55 19.85
WMG
79GF Score
Warner Music Group Corp WMG
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Warner Music Group ROCE % Calculation

Warner Music Group's annualized ROCE % for the fiscal year that ended in Sep. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Sep. 2025 )  (A: Sep. 2024 )(A: Sep. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Sep. 2025 )  (A: Sep. 2024 )(A: Sep. 2025 )
=652/( ( (9155 - 3897) + (9829 - 4201) )/ 2 )
=652/( (5258+5628)/ 2 )
=652/5443
=11.98 %

Warner Music Group's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=1180/( ( (10011 - 4310) + (10612 - 4421) )/ 2 )
=1180/( ( 5701 + 6191 )/ 2 )
=1180/5946
=19.85 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 19.85% mean?
Warner Music Group (WMG) has a ROCE % of 19.85% as of Mar. 2026.
Is Warner Music Group's ROCE % too high?
Warner Music Group's current ROCE % is 19.85%. The Media - Diversified industry median ROCE % is 3.10. Warner Music Group's value of 19.85% is 540.3% above this industry median. Overall, Warner Music Group has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Warner Music Group's ROCE % compare to TKO and NWSA?
Warner Music Group's ROCE % of 19.85% can be compared against companies in the Media - Diversified industry. The industry median ROCE % is 3.10. Warner Music Group's value of 19.85% is 540.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Media - Diversified company?
The median ROCE % among Media - Diversified companies is 3.10, based on 988 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Warner Music Group's current ROCE % of 19.85% is 540.3% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Media - Diversified industry, the median ROCE % is 3.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Warner Music Group's current ROCE % is 19.85%. 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 (WMG) is currently considered Modestly Undervalued. The stock's GF Value™ is $35.06, compared to a current price of $26.93 — trading 23.2% below its estimated fair value. The current ROCE % is 19.85% and 540.3% above the Media - Diversified industry median of 3.10. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Warner Music Group (WMG), the current ROCE % is 19.85% 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 (WMG) Overvalued in 2026?

Based on GuruFocus' analysis, Warner Music Group stock appears to be undervalued. The current stock price of $26.93 is trading 23.2% below its estimated GF Value™ of $35.06. GuruFocus considers Warner Music Group to be Modestly Undervalued.

Key valuation signals for WMG:

  • ROCE %: 19.85%
  • GF Value™: $35.06 vs. price of $26.93 (23.2% below fair value)
  • GF Score™: 79/100 with 2 warning signs
  • Industry Position: 540.3% above the Media - Diversified median

No single metric tells the full story. See the WMG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Warner Music Group Business Description

Address 1633 Broadway, New York, NY, USA, 10019
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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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$26.93
Price
$35.06
GF Value