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 22.67 is considered Fairly compared with the five-year average of -30.64. The fair price of Warner Bros Discovery Inc (WBD) is between to according to relative valuation methord.
Relative Value
Fair Zone
-
Current Price：22.67
Fair
-82.77
PE
1Y
3Y
5Y
Trailing
Forward
10.00
EV/EBITDA
Warner Bros Discovery Inc. (WBD) has a current EV/EBITDA of 10.00. The 5-year average EV/EBITDA is 7.31. The thresholds are as follows: Strongly Undervalued below 3.48, Undervalued between 3.48 and 5.40, Fairly Valued between 9.22 and 5.40, Overvalued between 9.22 and 11.14, and Strongly Overvalued above 11.14. The current Forward EV/EBITDA of 10.00 falls within the Overvalued range.
65.66
EV/EBIT
Warner Bros Discovery Inc. (WBD) has a current EV/EBIT of 65.66. The 5-year average EV/EBIT is 45.18. The thresholds are as follows: Strongly Undervalued below -65.09, Undervalued between -65.09 and -9.95, Fairly Valued between 100.31 and -9.95, Overvalued between 100.31 and 155.44, and Strongly Overvalued above 155.44. The current Forward EV/EBIT of 65.66 falls within the Historic Trend Line -Fairly Valued range.
22.67
PS
Warner Bros Discovery Inc. (WBD) has a current PS of 22.67. The 5-year average PS is 1.05. The thresholds are as follows: Strongly Undervalued below -2.54, Undervalued between -2.54 and -0.75, Fairly Valued between 2.84 and -0.75, Overvalued between 2.84 and 4.64, and Strongly Overvalued above 4.64. The current Forward PS of 22.67 falls within the Strongly Overvalued range.
14.40
P/OCF
Warner Bros Discovery Inc. (WBD) has a current P/OCF of 14.40. The 5-year average P/OCF is 5.74. The thresholds are as follows: Strongly Undervalued below 0.92, Undervalued between 0.92 and 3.33, Fairly Valued between 8.14 and 3.33, Overvalued between 8.14 and 10.55, and Strongly Overvalued above 10.55. The current Forward P/OCF of 14.40 falls within the Strongly Overvalued range.
17.14
P/FCF
Warner Bros Discovery Inc. (WBD) has a current P/FCF of 17.14. The 5-year average P/FCF is 6.85. The thresholds are as follows: Strongly Undervalued below 1.22, Undervalued between 1.22 and 4.04, Fairly Valued between 9.67 and 4.04, Overvalued between 9.67 and 12.49, and Strongly Overvalued above 12.49. The current Forward P/FCF of 17.14 falls within the Strongly Overvalued range.
Warner Bros Discovery Inc (WBD) has a current Price-to-Book (P/B) ratio of 1.56. Compared to its 3-year average P/B ratio of 0.68 , 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 49.50% higher. Warner Bros Discovery Inc (WBD) has a Forward Free Cash Flow (FCF) yield of approximately 7.36%. Compared to its 3-year average FCF yield of 19.35%, the current FCF yield is approximately -61.98% lower. Relative to its 5-year average FCF yield of 15.77% , the current FCF yield is about -53.33% lower.
1.56
P/B
Median3y
0.68
Median5y
1.04
0.07
FCF Yield
Median3y
19.35
Median5y
15.77
Competitors Valuation Multiple
The average P/S ratio for WBD's competitors is 70.66, providing a benchmark for relative valuation. Warner Bros Discovery Inc Corp (WBD) exhibits a P/S ratio of 22.67, which is -67.92% above the industry average. Given its robust revenue growth of -6.01%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of WBD increased by 116.32% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 27.17 to 116.78.
The secondary factor is the Revenue Growth, contributed -6.01%to the performance.
Overall, the performance of WBD in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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