WBD Valuation

Warner Bros Discovery Inc

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13.490

-0.01(-0.074%)1D

Overview
Forecast
Valuation
Earnings

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 0.87 is considered Fairly compared with the five-year average of -18.99. The fair price of Warner Bros Discovery Inc (WBD) is between 7.10 to 20.53 according to relative valuation methord.

Relative Value

Fair Zone

7.10-20.53

Current Price：13.49

Fair

-165.93

Trailing

Forward

7.70

EV/EBITDA

Warner Bros Discovery Inc. (WBD) has a current EV/EBITDA of 7.70. The 5-year average EV/EBITDA is 7.29. The thresholds are as follows: Strongly Undervalued below 3.52, Undervalued between 3.52 and 5.40, Fairly Valued between 9.17 and 5.40, Overvalued between 9.17 and 11.05, and Strongly Overvalued above 11.05. The current Forward EV/EBITDA of 7.70 falls within the Historic Trend Line -Fairly Valued range.

61.21

EV/EBIT

Warner Bros Discovery Inc. (WBD) has a current EV/EBIT of 61.21. The 5-year average EV/EBIT is 43.48. The thresholds are as follows: Strongly Undervalued below -67.14, Undervalued between -67.14 and -11.83, Fairly Valued between 98.79 and -11.83, Overvalued between 98.79 and 154.11, and Strongly Overvalued above 154.11. The current Forward EV/EBIT of 61.21 falls within the Historic Trend Line -Fairly Valued range.

0.87

Warner Bros Discovery Inc. (WBD) has a current PS of 0.87. The 5-year average PS is 0.93. The thresholds are as follows: Strongly Undervalued below -0.16, Undervalued between -0.16 and 0.38, Fairly Valued between 1.47 and 0.38, Overvalued between 1.47 and 2.01, and Strongly Overvalued above 2.01. The current Forward PS of 0.87 falls within the Historic Trend Line -Fairly Valued range.

5.79

P/OCF

Warner Bros Discovery Inc. (WBD) has a current P/OCF of 5.79. The 5-year average P/OCF is 5.55. The thresholds are as follows: Strongly Undervalued below 1.17, Undervalued between 1.17 and 3.36, Fairly Valued between 7.74 and 3.36, Overvalued between 7.74 and 9.94, and Strongly Overvalued above 9.94. The current Forward P/OCF of 5.79 falls within the Historic Trend Line -Fairly Valued range.

8.13

P/FCF

Warner Bros Discovery Inc. (WBD) has a current P/FCF of 8.13. The 5-year average P/FCF is 6.65. The thresholds are as follows: Strongly Undervalued below 1.53, Undervalued between 1.53 and 4.09, Fairly Valued between 9.20 and 4.09, Overvalued between 9.20 and 11.76, and Strongly Overvalued above 11.76. The current Forward P/FCF of 8.13 falls within the Historic Trend Line -Fairly Valued range.

Warner Bros Discovery Inc (WBD) has a current Price-to-Book (P/B) ratio of 0.99. Compared to its 3-year average P/B ratio of 0.63 , the current P/B ratio is approximately 57.43% higher. Relative to its 5-year average P/B ratio of 1.06, the current P/B ratio is about -7.35% higher. Warner Bros Discovery Inc (WBD) has a Forward Free Cash Flow (FCF) yield of approximately 13.00%. Compared to its 3-year average FCF yield of 19.02%, the current FCF yield is approximately -31.63% lower. Relative to its 5-year average FCF yield of 16.46% , the current FCF yield is about -21.01% lower.

0.99

P/B

Median3y

0.63

Median5y

1.06

13.00

FCF Yield

Median3y

19.02

Median5y

16.46

Competitors Valuation Multiple

The average P/S ratio for WBD's competitors is 0.66, providing a benchmark for relative valuation. Warner Bros Discovery Inc Corp (WBD) exhibits a P/S ratio of 0.87, which is 32.02% above the industry average. Given its robust revenue growth of -9.83%, 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

Performance Decomposition

Market capitalization of WBD increased by 55.95% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -1.44 to -3.07.

The secondary factor is the Revenue Growth, contributed -9.83%to the performance.

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

-9.83%

9.96B → 8.98B

Revenue Growth

-47.86%

-9.59 → -5.00

Margin Expansion

113.64%

-1.44 → -3.07

P/E Change

55.95%