Universal Music Group NV
UMG: XAMS (NLD)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
€34.00 | Qffgp | Myrzybqhx |
UMG Should Benefit From Continued Streaming Adoption, Launch Coverage with Narrow Moat, EUR 31 FVE
We are launching coverage on Universal Music Group with a narrow moat, stable moat trend, and fair value estimate of EUR 31. Our fair value estimate implies an enterprise value of 20 times our adjusted 2022 EBITDA estimate and a price/2022 earnings multiple of 26. With shares trading just inside 4-star territory, we think the current price represents an attractive entry point into the recently spun-off music giant.