Discounted Cash Flow

Warner Music Group Corp.

WMG · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $3.2b $25.0m $300.0m 0.8%
2017 $3.6b (10.2%) $143.0m (472.0%) $491.0m (63.7%) 4.0% (419.2%)
2018 $4.0b (12.0%) $307.0m (114.7%) $351.0m (-28.5%) 7.7% (91.7%)
2019 $4.5b (11.7%) $256.0m (-16.6%) $296.0m (-15.7%) 5.7% (-25.4%)
2020 $4.5b (-0.3%) $-475.0m (-285.5%) $378.0m (27.7%) -10.6% (-286.0%)
2021 $5.3b (18.8%) $304.0m (164.0%) $545.0m (44.2%) 5.7% (153.9%)
2022 $5.9b (11.7%) $551.0m (81.2%) $607.0m (11.4%) 9.3% (62.3%)
2023 $6.0b (2.0%) $430.0m (-22.0%) $560.0m (-7.7%) 7.1% (-23.5%)
2024 $6.4b (6.4%) $435.0m (1.2%) $638.0m (13.9%) 6.8% (-5.0%)
2025 $6.7b (4.4%) $365.0m (-16.1%) $539.0m (-15.5%) 5.4% (-19.6%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model