WBD Valuation

Warner Bros Discovery Inc

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22.290

-0.16(-0.713%)1D

WBD Relative Valuation

WBD's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, WBD is overvalued; if below, it's undervalued.

Historical Valuation

Warner Bros Discovery Inc (WBD) is now in the Fair zone, suggesting that its current forward PS ratio of 22.45 is considered Fairly compared with the five-year average of -30.34. The fair price of Warner Bros Discovery Inc (WBD) is between to according to relative valuation methord.

Relative Value

Fair Zone

Current Price：22.29

Fair

-120.25

Trailing

Forward

9.91

EV/EBITDA

Warner Bros Discovery Inc. (WBD) has a current EV/EBITDA of 9.91. The 5-year average EV/EBITDA is 7.30. The thresholds are as follows: Strongly Undervalued below 3.48, Undervalued between 3.48 and 5.39, Fairly Valued between 9.21 and 5.39, Overvalued between 9.21 and 11.12, and Strongly Overvalued above 11.12. The current Forward EV/EBITDA of 9.91 falls within the Overvalued range.

53.54

EV/EBIT

Warner Bros Discovery Inc. (WBD) has a current EV/EBIT of 53.54. The 5-year average EV/EBIT is 45.05. The thresholds are as follows: Strongly Undervalued below -65.25, Undervalued between -65.25 and -10.10, Fairly Valued between 100.20 and -10.10, Overvalued between 100.20 and 155.35, and Strongly Overvalued above 155.35. The current Forward EV/EBIT of 53.54 falls within the Historic Trend Line -Fairly Valued range.

22.45

Warner Bros Discovery Inc. (WBD) has a current PS of 22.45. The 5-year average PS is 0.96. The thresholds are as follows: Strongly Undervalued below -1.36, Undervalued between -1.36 and -0.20, Fairly Valued between 2.12 and -0.20, Overvalued between 2.12 and 3.28, and Strongly Overvalued above 3.28. The current Forward PS of 22.45 falls within the Strongly Overvalued range.

14.20

P/OCF

Warner Bros Discovery Inc. (WBD) has a current P/OCF of 14.20. The 5-year average P/OCF is 5.72. The thresholds are as follows: Strongly Undervalued below 0.98, Undervalued between 0.98 and 3.35, Fairly Valued between 8.09 and 3.35, Overvalued between 8.09 and 10.46, and Strongly Overvalued above 10.46. The current Forward P/OCF of 14.20 falls within the Strongly Overvalued range.

16.91

P/FCF

Warner Bros Discovery Inc. (WBD) has a current P/FCF of 16.91. The 5-year average P/FCF is 6.83. The thresholds are as follows: Strongly Undervalued below 1.29, Undervalued between 1.29 and 4.06, Fairly Valued between 9.60 and 4.06, Overvalued between 9.60 and 12.37, and Strongly Overvalued above 12.37. The current Forward P/FCF of 16.91 falls within the Strongly Overvalued range.

Warner Bros Discovery Inc (WBD) has a current Price-to-Book (P/B) ratio of 1.54. Compared to its 3-year average P/B ratio of 0.67 , the current P/B ratio is approximately 130.85% higher. Relative to its 5-year average P/B ratio of 1.04, the current P/B ratio is about 47.98% higher. Warner Bros Discovery Inc (WBD) has a Forward Free Cash Flow (FCF) yield of approximately 7.31%. Compared to its 3-year average FCF yield of 19.39%, the current FCF yield is approximately -62.29% lower. Relative to its 5-year average FCF yield of 15.83% , the current FCF yield is about -53.80% lower.

1.54

P/B

Median3y

0.67

Median5y

1.04

7.31

FCF Yield

Median3y

19.39

Median5y

15.83

Competitors Valuation Multiple

The average P/S ratio for WBD's competitors is 75.93, providing a benchmark for relative valuation. Warner Bros Discovery Inc Corp (WBD) exhibits a P/S ratio of 22.45, which is -70.43% above the industry average. Given its robust revenue growth of 1.02%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

WBD.O

Warner Bros Discovery Inc

Charter Communications Inc

Paramount Skydance Corp

Performance Decomposition

Market capitalization of WBD increased by 112.69% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 22.10 to 72.34.

The secondary factor is the Revenue Growth, contributed 1.02%to the performance.

Overall, the performance of WBD in the past 1 year is driven by P/E Change. Which is more unsustainable.

1.02%

9.71B → 9.81B

Revenue Growth

-115.67%

-103.24 → 16.18

Margin Expansion

227.34%

22.10 → 72.34

P/E Change

112.69%