Universal Music Group N.V. operates as a music company worldwide. It operates through Recorded Music, Music Publishing, and Merchandising & Other segments. The Recorded Music segment discovers and develops recording artists, as well as markets and promotes their music across various formats and platforms; and engages in the live events, sponsorship, film, and television operations. The Music Publishing segment discovers and develops songwriters, as well as owns and administers the copyright for musical compositions used in recordings, public performances, and related uses, such as films and advertisements. The Merchandising & Other segment produces and sells artist and other branded products through various sales channels, including fashion retail, concert touring, and internet, as well as offers brand rights management services. The company has approximately 3 million recordings, 4 million owned and administered titles, and 250 artists/brands, as well as owns approximately 50 labels covering various music genres. The company was incorporated in 2020 and is headquartered in Hilversum, the Netherlands.

BUILD UP FREE CASH	2022-12-31 (A)	2023-12-31 (A)	2024-12-31 (A)	2025-12-31 (E)	2026-12-31 (E)	2027-12-31 (E)	2028-12-31 (E)	2029-12-31 (E)
Revenue	10,340	11,108	11,834	12,331.3	13,224.5	14,117.7	14,117.7	14,117.7
Revenue % Chg.	21.6%	7.4%	6.5%
EBIT	1,646	1,446	1,941	2,038.5	2,397.8	2,647.9	2,647.9	2,647.9
EBIT Margin	15.9%	13%	16.4%
Tax Rate	12.8%	26.6%	27.1%
NOPAT	1,435.7	1,061.2	1,415	1,539.6	1,812.1	1,997.9	1,997.9	1,997.9
NOPAT Margin	13.9%	9.6%	12%	12.5%	13.7%	14.2%	14.2%	14.2%
D&A	141	146	164	405.1	423.8	448.2	448.2	448.2
D&A / Revenue	1.4%	1.3%	1.4%
Capex	-33	-47	-91	-188.8	-192.3	-202.6	-202.6	-202.6
Capex / Revenue	-0.3%	-0.4%	-0.8%
Chg. NWC	-33	164	-5	45.8	49.2	52.5	52.5	52.5
Chg. NWC / Revenue	-0.3%	1.5%	-0%
Unlevered FCF (UFCF)	1,510.7	1,324.2	1,483	1,801.6	2,092.8	2,295.9	2,295.9	2,295.9
UFCF % Chg.	4.7%	-12.3%	12%	21.5%	16.2%	9.7%	—	—
PV of UFCF	—	—	—	1,663	1,783.1	1,805.5	1,666.6	1,538.3
Sum of PV of UFCF	—	—	—	1,663	3,446	5,251.6	6,918.1	8,456.5

Cost of Debt
Tax Rate
After Tax Cost of Debt	3.5%
Risk Free Rate
Market Risk Premium
Beta	1
Cost of Equity	8.7%
Total Debt	3,192
Market Cap	40,291.8
Total Capital	43,483.8
Debt Weighting	7.3%
Equity Weighting	92.7%
WACC	8.3%

Exit Multiple EV/FCF
Terminal Value	43,531.8
PV of Terminal Value	26,922.5
Cumulative PV of UFCF	8,456.5
Net Debt	3,210
Equity Value	32,169
Shares Outstanding	1,833.9
Implied Share Price	17.5
Current Share Price	22
Implied Upside / (Downside)	-20.2%