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Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Warner Music Group's 3-Year RORE % for the quarter that ended in Mar. 2026 was -35.57%.
The industry rank for Warner Music Group's 3-Year RORE % or its related term are showing as below:
FRA:WA4's 3-Year RORE % is ranked worse than 66.91% of 961
companies
in the Media - Diversified industry
Industry Median: -3.23
vs FRA:WA4: -35.57
Warner Music Group (FRA:WA4) 3-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Warner Music Group 3-Year RORE % Related Terms
Warner Music Group 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Warner Music Group's 3-Year RORE % 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.
FRA:WA4 vs NWSA, TKO, PSKY: 3-Year RORE % Comparison
For the Entertainment subindustry, Warner Music Group's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 3-Year RORE % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Warner Music Group's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Warner Music Group's 3-Year RORE % 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
Warner Music Group (FRA:WA4) has a 3-Year RORE % of -35.57 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Warner Music Group and its competitors. According to the industry distribution chart, Warner Music Group ranks #643 out of 961 companies in the Media - Diversified industry, placing it in the top 66.9%.
Is Warner Music Group's 3-Year RORE % too high?
Warner Music Group's current 3-Year RORE % is -35.57. Based on the distribution chart, Warner Music Group ranks #643 out of 961 companies in the Media - Diversified industry, which is below the industry midpoint. 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 3-Year RORE % compare to NWSA and TKO?
According to the Media - Diversified industry distribution chart, Warner Music Group ranks #643 out of 961 companies for 3-Year RORE %. This places Warner Music Group in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Media - Diversified company?
A good 3-Year RORE % depends on the Media - Diversified industry context. However, 3-Year RORE % 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Warner Music Group and its competitors. Warner Music Group's current 3-Year RORE % is -35.57. 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 (FRA:WA4) is currently considered Modestly Undervalued. The stock's GF Value™ is €30.71, compared to a current price of €24.11 — trading 21.5% below its estimated fair value. The current 3-Year RORE % is -35.57. 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 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Warner Music Group (FRA:WA4), the current 3-Year RORE % is -35.57 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 (FRA:WA4) Overvalued in 2026?
Based on GuruFocus' analysis, Warner Music Group stock appears to be undervalued.
The current stock price of €24.11 is trading 21.5% below its estimated GF Value™ of €30.71.
GuruFocus considers Warner Music Group to be Modestly Undervalued.
Key valuation signals for FRA:WA4:
3-Year RORE %: -35.57
GF Value™: €30.71 vs. price of €24.11 (21.5% below fair value)
No single metric tells the full story. See the FRA: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
Get the complete analysis for FRA:WA4
3-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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