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Universal Music Group NVCHIX:UMGA 75 5-Year Yield-on-Cost % is 2.83 as of Jul. 30, 2026, which is 49% above its 10-year median of 1.90. GuruFocus rates CHIX:UMGA with a GF Score™ of 75/100 and a GF Value™ of €27.87 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 395 Media - Diversified companies, Universal Music Group NV ranks worse than 60.51% on this metric.
The historical rank and industry rank for Universal Music Group NV's 5-Year Yield-on-Cost % or its related term are showing as below:
CHIX:UMGa'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.8 Med: 1.9 Max: 3.34
Current: 2.83
During the past 9 years, Universal Music Group NV's highest Yield on Cost was 3.34. The lowest was 0.80. And the median was 1.90.
CHIX:UMGa's 5-Year Yield-on-Cost % is ranked worse than 60.51% of 395
companies
in the Media - Diversified industry
Industry Median: 3.5
vs CHIX:UMGa: 2.83
Universal Music Group NV (CHIX:UMGa) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Universal Music Group NV 5-Year Yield-on-Cost % Related Terms
CHIX:UMGA vs NFLX, DIS, WBD: 5-Year Yield-on-Cost % Comparison
For the Entertainment subindustry, Universal Music Group NV's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Universal Music Group NV's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Universal Music Group NV's 5-Year Yield-on-Cost % falls into.
Universal Music Group NV 5-Year Yield-on-Cost % Calculation
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Universal Music Group NV (CHIX:UMGA) has a 5-Year Yield-on-Cost % of 2.83 as of Jul. 30, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Universal Music Group NV and its competitors. This is 49% above median its historical median of 1.90. Over the past decade, Universal Music Group NV's 5-Year Yield-on-Cost % has ranged from 0.80 to 3.34. According to the industry distribution chart, Universal Music Group NV ranks #239 out of 395 companies in the Media - Diversified industry, placing it in the top 60.5%.
Is Universal Music Group NV's 5-Year Yield-on-Cost % too high?
Universal Music Group NV's current 5-Year Yield-on-Cost % of 2.83 is 49% above median its 10-year median of 1.90. Over the past 10 years, this metric has ranged from a low of 0.80 to a high of 3.34. The Media - Diversified industry median 5-Year Yield-on-Cost % is 3.50. Universal Music Group NV's value of 2.83 is 19.1% below this industry median. Based on the distribution chart, Universal Music Group NV ranks #239 out of 395 companies in the Media - Diversified industry, which is below the industry midpoint. Overall, Universal Music Group NV has a GF Score™ of 75/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Universal Music Group NV's 5-Year Yield-on-Cost % compare to NFLX and DIS?
According to the Media - Diversified industry distribution chart, Universal Music Group NV ranks #239 out of 395 companies for 5-Year Yield-on-Cost %. This places Universal Music Group NV in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 3.50. Universal Music Group NV's value of 2.83 is 19.1% below this benchmark. Historically, Universal Music Group NV's own 5-Year Yield-on-Cost % has ranged from 0.80 to 3.34 over the past decade. While the company's 10-year median is 1.90 vs. the industry median of 3.50, Universal Music Group NV has consistently been below 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 5-Year Yield-on-Cost % for a Media - Diversified company?
The median 5-Year Yield-on-Cost % among Media - Diversified companies is 3.50, based on 395 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Universal Music Group NV's current 5-Year Yield-on-Cost % of 2.83 is 19.1% below 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Universal Music Group NV and its competitors. For the Media - Diversified industry, the median 5-Year Yield-on-Cost % is 3.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Universal Music Group NV's current 5-Year Yield-on-Cost % is 2.83, which is 49% above median its own 10-year median of 1.90. 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 €27.87, compared to a current price of €18.40 — trading 34% below its estimated fair value. The current 5-Year Yield-on-Cost % is 2.83, which is 49% above median its 10-year median of 1.90 and 19.1% below the Media - Diversified industry median of 3.50. Universal Music Group NV's overall GF Score™ is 75/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Universal Music Group NV (CHIX:UMGA), the current 5-Year Yield-on-Cost % is 2.83 as of Jul. 30, 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 €18.40 is trading 34% below its estimated GF Value™ of €27.87.
GuruFocus considers Universal Music Group NV to be Possible Value Trap.
Key valuation signals for CHIX:UMGA:
5-Year Yield-on-Cost %: 2.83 (49% above median its 10-year median of 1.90)
GF Value™: €27.87 vs. price of €18.40 (34% below fair value)
Industry Position: 19.1% below the Media - Diversified median (#239 of 395)
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 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.
75GF Score
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