Warner Music Group Stock Market Value
| WMG Stock | USD 32.04 0.15 0.47% |
| Symbol | Warner |
Warner Music Group Price To Book Ratio
Is Warner Music's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Warner Music. If investors know Warner will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Warner Music listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 1.868 | Dividend Share 0.67 | Earnings Share 1.01 | Revenue Per Share 12.374 | Quarterly Revenue Growth 0.068 |
The market value of Warner Music Group is measured differently than its book value, which is the value of Warner that is recorded on the company's balance sheet. Investors also form their own opinion of Warner Music's value that differs from its market value or its book value, called intrinsic value, which is Warner Music's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Warner Music's market value can be influenced by many factors that don't directly affect Warner Music's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Warner Music's value and its price as these two are different measures arrived at by different means. Investors typically determine if Warner Music is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Warner Music's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Warner Music 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Warner Music's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Warner Music.
| 02/20/2024 |
| 05/20/2024 |
If you would invest 0.00 in Warner Music on February 20, 2024 and sell it all today you would earn a total of 0.00 from holding Warner Music Group or generate 0.0% return on investment in Warner Music over 90 days. Warner Music is related to or competes with Warner Bros, HUMANA, Barloworld, Morningstar Unconstrained, and High Yield. Warner Music Group Corp. operates as a music entertainment company in the United States, the United Kingdom, Germany, an... More
Warner Music Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Warner Music's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Warner Music Group upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.13) | |||
| Maximum Drawdown | 14.42 | |||
| Value At Risk | (3.04) | |||
| Potential Upside | 2.77 |
Warner Music Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Warner Music's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Warner Music's standard deviation. In reality, there are many statistical measures that can use Warner Music historical prices to predict the future Warner Music's volatility.| Risk Adjusted Performance | (0.04) | |||
| Jensen Alpha | (0.20) | |||
| Total Risk Alpha | (0.49) | |||
| Treynor Ratio | (0.80) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Warner Music's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Warner Music Group Backtested Returns
Warner Music Group shows Sharpe Ratio of -0.0655, which attests that the company had a -0.0655% return per unit of risk over the last 3 months. Warner Music Group exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check out Warner Music's Standard Deviation of 2.06, market risk adjusted performance of (0.79), and Mean Deviation of 1.38 to validate the risk estimate we provide. The firm maintains a market beta of 0.22, which attests to not very significant fluctuations relative to the market. As returns on the market increase, Warner Music's returns are expected to increase less than the market. However, during the bear market, the loss of holding Warner Music is expected to be smaller as well. Warner Music Group has an expected return of -0.14%. Please make sure to check out Warner Music Group value at risk, daily balance of power, as well as the relationship between the Daily Balance Of Power and price action indicator , to decide if Warner Music Group performance from the past will be repeated at some point in the near future.
Auto-correlation | 0.08 |
Virtually no predictability
Warner Music Group has virtually no predictability. Overlapping area represents the amount of predictability between Warner Music time series from 20th of February 2024 to 5th of April 2024 and 5th of April 2024 to 20th of May 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Warner Music Group price movement. The serial correlation of 0.08 indicates that barely 8.0% of current Warner Music price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.08 | |
| Spearman Rank Test | 0.51 | |
| Residual Average | 0.0 | |
| Price Variance | 1.38 |
Warner Music Group lagged returns against current returns
Autocorrelation, which is Warner Music stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Warner Music's stock expected returns. We can calculate the autocorrelation of Warner Music returns to help us make a trade decision. For example, suppose you find that Warner Music has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Warner Music regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Warner Music stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Warner Music stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Warner Music stock over time.
Current vs Lagged Prices |
| Timeline |
Warner Music Lagged Returns
When evaluating Warner Music's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Warner Music stock have on its future price. Warner Music autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Warner Music autocorrelation shows the relationship between Warner Music stock current value and its past values and can show if there is a momentum factor associated with investing in Warner Music Group.
Regressed Prices |
| Timeline |
Currently Active Assets on Macroaxis
When determining whether Warner Music Group is a strong investment it is important to analyze Warner Music's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Warner Music's future performance. For an informed investment choice regarding Warner Stock, refer to the following important reports:Check out Warner Music Correlation, Warner Music Volatility and Warner Music Alpha and Beta module to complement your research on Warner Music. You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Complementary Tools for Warner Stock analysis
When running Warner Music's price analysis, check to measure Warner 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 Warner Music is operating at the current time. Most of Warner Music's value examination focuses on studying past and present price action to predict the probability of Warner 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 Warner Music's price. Additionally, you may evaluate how the addition of Warner Music to your portfolios can decrease your overall portfolio volatility.
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Warner Music technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.