Universal Music Group hits €46.3billion valuation after going public in Amsterdam

Analysts argue that UMG has an even higher fair value at €54billion.

After going public, Universal Music Group has seen its valuation rise to a colossal €46.3billion on the Amsterdam Stock Exchange, more than a third higher than the reference price confirmed by its parent company Vivendi.

Music Business Worldwide reports that UMG’s share price has risen to €25.25/$29.63, putting the company’s valuation at €46.3billion/$54.3billion. Vivendi had valued UMG at €33.5billion in its reference price, but analysts have argued that UMG has an even higher fair value.

JP Morgan Cazenove suggested UMG should be valued at €54billion, with JP Morgan analyst Daniel Kerven asserting in a report that “Warner Music Group is undervalued and that Universal Music Group should trade on a significant premium, given a better track record, better governance and best-in-class management.”

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As a result of the listing on the Amsterdam Stock Exchange, Vivendi now only owns 10 per cent of shares, with a Tencent-led consortium holding 20 per cent.

With the recorded music division of UMG generating annual revenues of €5.97billion / $6.74billion in 2020, no single artist accounts for more than 1 per cent of the company’s revenue. UMG’s catalogue includes ABBA, The Beatles, The Beach Boys, The Bee Gees, Bon Jovi, Neil Diamond, Marvin Gaye, Guns N’ Roses, Elton John, Bob Marley, Paul McCartney and Nirvana.

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