Warner Music Group doubles revenue since IPO but stock price stays flat amid valuation drop

Warner Music Group (WMG) has doubled its revenue and nearly tripled its EBITDA since its IPO six years ago, driven by strong streaming revenue growth, better pricing, and new subscriber contracts with companies like Apple. Despite this financial progress, WMG's stock price has remained flat due to a contraction in valuation multiples. The company is also exploring AI opportunities through licensing, balancing innovation with artist interests. WMG's forward price-to-earnings ratio is expected to fall to around 15x, with potential for over 10% annual earnings growth, suggesting attractive long-term investment potential.