Warner Music Group (WMG) Beat Expectations, Is The Stock Still Cheap?

Warner Music Group (WMG) is back on investors’ radar after its latest quarter beat expectations, delivering higher-than-forecast revenue plus EPS and EBITDA results that also came in above estimates. The upbeat report arrives after a mixed stretch for the company: the stock is down 8.11% year to date and the 1-year total shareholder return has fallen 13.33%. Still, the shares gained 7.74% over the past 30 days, suggesting improving momentum. One widely followed valuation narrative pegs WMG’s fair value at $36.88 versus a $27.97 close, citing streaming growth and margin assumptions, though weaker ad-supported streaming and declines in operating and free cash flow are key risks.