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Warner Music GroupFRA:WA4 -0.32%79 5-Year Yield-on-Cost % is 11.07 as of Jul. 22, 2026, which is 29% above its 10-year median of 8.61. GuruFocus rates FRA:WA4 with a GF Score™ of 79/100 and a GF Value™ of €30.92 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 396 Media - Diversified companies, Warner Music Group ranks better than 86.11% on this metric.
Warner Music Group's yield on cost for the quarter that ended in Mar. 2026 was 11.07.
The historical rank and industry rank for Warner Music Group's 5-Year Yield-on-Cost % or its related term are showing as below:
FRA:WA4'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.34 Med: 8.61 Max: 12.99
Current: 11.07
During the past 13 years, Warner Music Group's highest Yield on Cost was 12.99. The lowest was 1.34. And the median was 8.61.
FRA:WA4's 5-Year Yield-on-Cost % is ranked better than 86.11% of 396
companies
in the Media - Diversified industry
Industry Median: 3.425
vs FRA:WA4: 11.07
Warner Music Group (FRA:WA4) 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.
Warner Music Group 5-Year Yield-on-Cost % Related Terms
FRA:WA4 vs NWSA, TKO, PSKY: 5-Year Yield-on-Cost % Comparison
For the Entertainment subindustry, Warner Music Group'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.
Warner Music Group 5-Year Yield-on-Cost % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Warner Music Group's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Warner Music Group's 5-Year Yield-on-Cost % falls into.
Warner Music Group 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.
Warner Music Group (FRA:WA4) has a 5-Year Yield-on-Cost % of 11.07 as of Jul. 22, 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 Warner Music Group and its competitors. This is 29% above median its historical median of 8.61. Over the past decade, Warner Music Group's 5-Year Yield-on-Cost % has ranged from 1.34 to 12.99. According to the industry distribution chart, Warner Music Group ranks #55 out of 396 companies in the Media - Diversified industry, placing it in the top 13.9%.
Is Warner Music Group's 5-Year Yield-on-Cost % too high?
Warner Music Group's current 5-Year Yield-on-Cost % of 11.07 is 29% above median its 10-year median of 8.61. Over the past 10 years, this metric has ranged from a low of 1.34 to a high of 12.99. The Media - Diversified industry median 5-Year Yield-on-Cost % is 3.43. Warner Music Group's value of 11.07 is 223.2% above this industry median. Based on the distribution chart, Warner Music Group ranks #55 out of 396 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 5-Year Yield-on-Cost % compare to NWSA and TKO?
According to the Media - Diversified industry distribution chart, Warner Music Group ranks #55 out of 396 companies for 5-Year Yield-on-Cost %. This places Warner Music Group in the top 14% of its industry — outperforming the majority of peers. The industry median 5-Year Yield-on-Cost % is 3.43. Warner Music Group's value of 11.07 is 223.2% above this benchmark. Historically, Warner Music Group's own 5-Year Yield-on-Cost % has ranged from 1.34 to 12.99 over the past decade. While the company's 10-year median is 8.61 vs. the industry median of 3.43, 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 5-Year Yield-on-Cost % for a Media - Diversified company?
The median 5-Year Yield-on-Cost % among Media - Diversified companies is 3.43, based on 396 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. Warner Music Group's current 5-Year Yield-on-Cost % of 11.07 is 223.2% 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 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 Warner Music Group and its competitors. For the Media - Diversified industry, the median 5-Year Yield-on-Cost % is 3.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Warner Music Group's current 5-Year Yield-on-Cost % is 11.07, which is 29% above median its own 10-year median of 8.61. 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 €30.92, compared to a current price of €24.57 — trading 20.5% below its estimated fair value. The current 5-Year Yield-on-Cost % is 11.07, which is 29% above median its 10-year median of 8.61 and 223.2% above the Media - Diversified industry median of 3.43. 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 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Warner Music Group (FRA:WA4), the current 5-Year Yield-on-Cost % is 11.07 as of Jul. 22, 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 €24.57 is trading 20.5% below its estimated GF Value™ of €30.92.
GuruFocus considers Warner Music Group to be Modestly Undervalued.
Key valuation signals for FRA:WA4:
5-Year Yield-on-Cost %: 11.07 (29% above median its 10-year median of 8.61)
GF Value™: €30.92 vs. price of €24.57 (20.5% below fair value)
Industry Position: 223.2% above the Media - Diversified median (#55 of 396)
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
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