Are Warner Music Group Corp. (NASDAQ:WMG) shares too expensive at this price?

In the latest session, Warner Music Group Corp. (NASDAQ: WMG) closed at 25.06 down -2.49% from its previous closing price of $25.70. In other words, the price has decreased by $-0.64 from its previous closing price. On the day, 1996040 shares were traded. WMG reached its highest trading level at $25.64 during the session, while it also had its lowest trading level at $24.83.

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For a deeper understanding of Warner Music Group Corp.’s stock, let’s take a closer look at its various ratios. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 37.98 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 110.12. For the most recent quarter (mrq), Quick Ratio is recorded 0.60 and its Current Ratio is at 0.60. In the meantime, Its Debt-to-Equity ratio is 24.26 whereas as Long-Term Debt/Eq ratio is at 24.26.

Upgrades & Downgrades

On March 11, 2022, Deutsche Bank started tracking the stock assigning a Buy rating and target price of $42.

Jefferies Upgraded its Hold to Buy on January 04, 2022, whereas the target price for the stock was revised from $41 to $50.

Insider Transactions:

Additionally, insider trades can be beneficial to investors who want to learn what the management thinks about stock prices in the future. A recent insider transaction in this stock occurred on Mar 30 when Benet Lincoln E sold 10,000 shares for $38.25 per share. The transaction valued at 382,500 led to the insider holds 434,341 shares of the business.

Benet Lincoln E sold 10,000 shares of WMG for $379,700 on Mar 28. The Director now owns 444,341 shares after completing the transaction at $37.97 per share. On Mar 04, another insider, Benet Lincoln E, who serves as the Director of the company, sold 10,000 shares for $33.20 each. As a result, the insider received 332,000 and left with 454,341 shares of the company.

Valuation Measures:

As of this moment, Warner’s Price-to-Earnings (P/E) ratio for their current fiscal year is 30.30, and their Forward P/E ratio for the next fiscal year is 22.70. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 0.86. For the stock, the TTM Price-to-Sale (P/S) ratio is 2.26 while its Price-to-Book (P/B) ratio in mrq is 83.53.

Stock Price History:

Over the past 52 weeks, WMG has reached a high of $50.23, while it has fallen to a 52-week low of $23.74. The 50-Day Moving Average of the stock is 28.34, while the 200-Day Moving Average is calculated to be 32.89.

Shares Statistics:

For the past three months, WMG has traded an average of 960.27K shares per day and 1.12M over the past ten days. A total of 514.82M shares are outstanding, with a floating share count of 114.32M. Insiders hold about 0.30% of the company’s shares, while institutions hold 85.90% stake in the company. Shares short for WMG as of Jul 14, 2022 were 3.56M with a Short Ratio of 4.44, compared to 3.48M on Jun 14, 2022. Therefore, it implies a Short% of Shares Outstanding of 0.69% and a Short% of Float of 3.30%.

Dividends & Splits

According to the company, the forward annual dividend rate for WMG is 0.64, from 0.51 in the trailing year. Against a Trailing Annual Dividend Yield of 1.98%, it implies a Forward Annual Dividend Yield of 2.02%.

Earnings Estimates

There are 12 different market analysts currently analyzing its stock. On average, analysts expect EPS of $0.2 for the current quarter, with a high estimate of $0.25 and a low estimate of $0.16, while EPS last year was $0.12. The consensus estimate for the next quarter is $0.15, with high estimates of $0.18 and low estimates of $0.1.

Analysts are recommending an EPS of between $0.96 and $0.75 for the fiscal current year, implying an average EPS of $0.86. EPS for the following year is $1.15, with 13 analysts recommending between $1.31 and $0.94.

Revenue Estimates

A total of 15 analysts have provided revenue estimates for WMG’s current fiscal year. The highest revenue estimate was $5.98B, while the lowest revenue estimate was $5.77B, resulting in an average revenue estimate of $5.87B. In the same quarter a year ago, actual revenue was $5.3B, up 10.80% from the average estimate. Based on 15 analysts’ estimates, the company’s revenue will be $6.38B in the next fiscal year. The high estimate is $6.72B and the low estimate is $6.14B. The average revenue growth estimate for next year is up 8.70% from the average revenue estimate for this year.