Warner Music GroupWMG -2.34%79 ROE % is 100.41% as of Mar. 2026, which is 19% above its 10-year median of 84.06. 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. Among 958 Media - Diversified companies, Warner Music Group ranks better than 96.66% on this metric.
The historical rank and industry rank for Warner Music Group's ROE % or its related term are showing as below:
WMG'
s ROE % Range Over the Past 10 Years
Min: 12.02 Med: 84.06 Max: 602.19
Current: 69.3
During the past 13 years, Warner Music Group's highest ROE % was 602.19%. The lowest was 12.02%. And the median was 84.06%.
WMG's ROE % is ranked better than 96.66% of 958
companies
in the Media - Diversified industry
Industry Median: 2.47
vs WMG: 69.30
Warner Music Group (NAS:WMG) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Warner Music Group ROE % Related Terms
Warner Music Group ROE % Historical Data
* Premium members only.
The historical data trend for Warner Music Group's ROE % 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.
For the Entertainment subindustry, Warner Music Group's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Warner Music Group's ROE % distribution charts can be found below:
* The bar in red indicates where Warner Music Group's ROE % 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Warner Music Group (WMG) has a ROE % of 100.41% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Warner Music Group and its competitors. This is 19% above median its historical median of 84.06. Over the past decade, Warner Music Group's ROE % has ranged from 12.02 to 602.19. According to the industry distribution chart, Warner Music Group ranks #32 out of 958 companies in the Media - Diversified industry, placing it in the top 3.3%.
Is Warner Music Group's ROE % too high?
Warner Music Group's current ROE % of 100.41% is 19% above median its 10-year median of 84.06. Over the past 10 years, this metric has ranged from a low of 12.02 to a high of 602.19. The Media - Diversified industry median ROE % is 2.47. Warner Music Group's value of 100.41% is 3965.2% above this industry median. Based on the distribution chart, Warner Music Group ranks #32 out of 958 companies in the Media - Diversified industry, which is in the top quartile — a strong position relative to peers. 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 ROE % compare to TKO and NWSA?
According to the Media - Diversified industry distribution chart, Warner Music Group ranks #32 out of 958 companies for ROE %. This places Warner Music Group in the top 3% of its industry — outperforming the majority of peers. The industry median ROE % is 2.47. Warner Music Group's value of 100.41% is 3965.2% above this benchmark. Historically, Warner Music Group's own ROE % has ranged from 12.02 to 602.19 over the past decade. While the company's 10-year median is 84.06 vs. the industry median of 2.47, 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 ROE % for a Media - Diversified company?
The median ROE % among Media - Diversified companies is 2.47, based on 958 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Warner Music Group's current ROE % of 100.41% is 3965.2% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Warner Music Group and its competitors. For the Media - Diversified industry, the median ROE % is 2.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Warner Music Group's current ROE % is 100.41%, which is 19% above median its own 10-year median of 84.06. 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 $26.28 — trading 25.1% below its estimated fair value. The current ROE % is 100.41%, which is 19% above median its 10-year median of 84.06 and 3965.2% above the Media - Diversified industry median of 2.47. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Warner Music Group (WMG), the current ROE % is 100.41% 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 $26.28 is trading 25.1% below its estimated GF Value™ of $35.06.
GuruFocus considers Warner Music Group to be Modestly Undervalued.
Key valuation signals for WMG:
ROE %: 100.41% (19% above median its 10-year median of 84.06)
GF Value™: $35.06 vs. price of $26.28 (25.1% below fair value)
Industry Position: 3965.2% above the Media - Diversified median (#32 of 958)
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 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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