Universal Music Valuation
| UMG Stock | 24.90 0.49 2.01% |
At this time, the company appears to be overvalued. Universal Music Group has a current Real Value of USD21.02 per share. The regular price of the company is USD24.9. Our model measures the value of Universal Music Group from inspecting the company fundamentals such as Return On Equity of 0.37, operating margin of 0.16 %, and Shares Outstanding of 1.81 B as well as reviewing its technical indicators and probability of bankruptcy.
Overvalued
Today
Please note that Universal Music's price fluctuation is very steady at this time. Calculation of the real value of Universal Music Group is based on 3 months time horizon. Increasing Universal Music's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Universal stock is determined by what a typical buyer is willing to pay for full or partial control of Universal Music Group. Since Universal Music is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Universal Stock. However, Universal Music's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 24.9 | Real 21.02 | Hype 24.9 | Naive 25.38 |
The intrinsic value of Universal Music's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Universal Music's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Universal Music Group helps investors to forecast how Universal stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Universal Music more accurately as focusing exclusively on Universal Music's fundamentals will not take into account other important factors: Universal Music Total Value Analysis
Universal Music Group is at this time forecasted to have takeover price of 43.69 B with market capitalization of 42.47 B, debt of 2.28 B, and cash on hands of . Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Universal Music fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
43.69 B | 42.47 B | 2.28 B |
Universal Music Investor Information
About 48.0% of the company outstanding shares are owned by insiders. The company has Price/Earnings To Growth (PEG) ratio of 1.16. Universal Music Group last dividend was issued on the 5th of October 2022. Based on the measurements of operating efficiency obtained from Universal Music's historical financial statements, Universal Music Group is not in a good financial situation at the moment. It has a very high risk of going through financial straits in January.Universal Music Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Universal Music has an asset utilization ratio of 70.32 percent. This implies that the Company is making USD0.7 for each dollar of assets. An increasing asset utilization means that Universal Music Group is more efficient with each dollar of assets it utilizes for everyday operations.Universal Music Ownership Allocation
Universal Music Group shows a total of 1.81 Billion outstanding shares. Universal Music Group maintains significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company's outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Please note that no matter how many assets the company owns, if the real value of the company is less than the current market value, you may not be able to make money on it.Universal Music Profitability Analysis
The company reported the revenue of 8.5 B. Net Income was 886 M with profit before overhead, payroll, taxes, and interest of 3.9 B.About Universal Music Valuation
The stock valuation mechanism determines Universal Music's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Universal Music Group based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Universal Music. We calculate exposure to Universal Music's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Universal Music's related companies.8 Steps to conduct Universal Music's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Universal Music's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Universal Music's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Universal Music's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Universal Music's revenue streams: Identify Universal Music's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Universal Music's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Universal Music's growth potential: Evaluate Universal Music's management, business model, and growth potential.
- Determine Universal Music's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Universal Music's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Additional Tools for Universal Stock Analysis
When running Universal Music's price analysis, check to measure Universal Music's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Universal Music is operating at the current time. Most of Universal Music's value examination focuses on studying past and present price action to predict the probability of Universal Music's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Universal Music's price. Additionally, you may evaluate how the addition of Universal Music to your portfolios can decrease your overall portfolio volatility.