Added to YB: 2026-08-04
Pitch date: 2026-07-31
UMG.AS [neutral]
Universal Music Group N.V.
+3.07%
current return
Author Info
Andrew Brown manages Dynasty Trust - a wholesale unit trust investing ONLY in public companies with controlling shareholders. Sign up for the newsletter.
Company Info
Universal Music Group N.V. operates as a music company worldwide. The company operates through Recorded Music, Music Publishing, and Merchandising & Other segments.
Market Cap
EUR 25.8B
Pitch Price
EUR 14.35
Price Target
N/A
Dividend
3.65%
EV/EBITDA
13.29
P/E
80.84
EV/Sales
2.40
Sector
Entertainment
Category
value
Universal Music Group
UMG.AS (overview): Argues UMG should be priced on FCF yield, not adj EBITDA. Catalogue investments (€266-345mn/yr) are non-discretionary, so company's FCF metric excludes them misleadingly. H1 FCF collapsed; net debt €4.1bn looks skinny post €500mn buyback at €18.70 avg. Fair value ~€12 at 4.25-4.5% EFCF yield vs €14 now (-26% today). €2.2bn Spotify/Tencent stakes cushion.
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