| Intrinsic Valuation of: WMG | |||||||||||
| Free Cash Flow Average and Growth over past 5Y | Key Statistics | ||||||||||
| Year | FCF | FCF (FCF/Revenue) | |||||||||
| 2020 | - | - | EPS (FY) | 1 | Market Cap | $15B | |||||
| 2021 | - | - (-) | P/E Ratio | 32 | Total Asset | $9B | |||||
| 2022 | $64M | - (-) | Net Income | $435M | Total Debt | $4B | |||||
| 2023 | $416M | 550.0% (482.1%) | EBITDA | $1B | Total Liab | $8B | |||||
| 2024 | $446M | 7.2% (5.1%) | Opr Margin | 0.15 | Debt/Equity | 5.95 | |||||
| 2025 | $451M | 1.1% (-5.0%) | PreTax Margin | 12.56 | BV/Share | -28 | |||||
| 5Y Average FCF | $344M | 186.1% (160.7%) | |||||||||
| Overall Market Assumptions: | |||||||||||
| Assumptions: | P/E for No-Growth Company: | 7.0 | |||||||||
| Perpetual Growth Rate (g): | 2.5% | Historical US Bond Yield: | 4.4% | ||||||||
| Discount Rate (WACC): | 7.4% | Current US Bond Yield: | 3.5% | ||||||||
| Forcasting Future Free Cash Flow for next 6Y | Modified Benjamin Graham's Intrinsic Value | ||||||||||
| Year | FCF Projection (25.0%) | ||||||||||
| 2026 | $564M | MBG Intrinsic Value | $8 | ||||||||
| 2027 | $705M | ||||||||||
| 2028 | $881M | ||||||||||
| 2029 | $1B | ||||||||||
| 2030 | $1B | ||||||||||
| 2031 | $2B | ||||||||||
| Terminal Value | $36B | Net Worth/Share | $5 | ||||||||
| DCF Valuation | DCF Valuation "What If" Scenario Table | ||||||||||
| Enterprise Value | $28B | Growth Rate | |||||||||
| (+) Cash & Cash Equivalents | $694M | $169 | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | ||||
| (-) Total Debt | $4B | WACC | 7.3% | 144 | 158 | 174 | 193 | 218 | |||
| Equity Value | $25B | 7.4% | 143 | 156 | 171 | 191 | 215 | ||||
| Shares Outstanding | 145,887,008 | 7.4% | 141 | 154 | 169 | 188 | 212 | ||||
| 7.9% | 127 | 138 | 150 | 165 | 184 | ||||||
| DCF Intrinsic Value | $169 | 8.4% | 115 | 124 | 134 | 146 | 161 | ||||
| Analyzed by QuantJuice (2025) | |||||||||||