Universal Music Group NV

UMG: XAMS (NLD)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	€47.00	Bfdxx	Xlstfbvldc

UMG Should Benefit From Continued Streaming Adoption, Launch Coverage with Narrow Moat, EUR 31 FVE

Neil Macker

Dec 1, 2021

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.

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