(WBD) Warner Bros Discovery - Overview
Sector: Communication Services | Industry: Entertainment | Exchange: NASDAQ (USA) | Market Cap: 68.119m USD | Total Return: 199.5% in 12m
Industry Rotation: +3.8
Avg Turnover: 455M
EPS Trend: 4.6%
Qual. Beats: -1
Rev. Trend: -72.3%
Qual. Beats: 0
Warnings
Altman Z'' -0.72 < 1.0 - financial distress zone
Tailwinds
Leader
Warner Bros. Discovery, Inc. (WBD) is a global media conglomerate operating through three primary divisions: Studios, Streaming, and Global Linear Networks. The company manages an extensive portfolio of intellectual property, including HBO, CNN, DC Studios, and the Warner Bros. Motion Picture Group. Its business model relies on a mix of theatrical releases, content licensing, and subscription-based revenue from platforms like Max and Discovery+.
The company operates within the capital-intensive media and entertainment sector, where profitability is increasingly tied to the transition from traditional linear television to direct-to-consumer streaming services. WBD further diversifies its revenue streams through interactive gaming and themed experiences, leveraging its library of film and television franchises across multiple consumer touchpoints.
To better understand the companys long-term valuation metrics, you may want to explore the data available on ValueRay.
- Direct-to-consumer subscriber growth and ARPU expansion drive streaming profitability
- High debt leverage and interest expense impact free cash flow valuation
- Linear advertising revenue declines as cord-cutting pressures the television segment
- Theatrical box office performance and gaming hits determine studios segment margins
- Sports broadcasting rights costs and renewal negotiations affect long-term operating leverage
| Net Income: -2.15b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.02 > 0.02 and ΔFCF/TA -1.91 > 1.0 |
| NWC/Revenue: -11.75% < 20% (prev -6.53%; Δ -5.22% < -1%) |
| CFO/TA 0.04 > 3% & CFO 3.56b > Net Income -2.15b |
| Net Debt (30.66b) to EBITDA (13.42b): 2.28 < 3 |
| Current Ratio: 0.73 > 1.5 & < 3 |
| Outstanding Shares: last quarter (2.49b) vs 12m ago 1.22% < -2% |
| Gross Margin: 38.21% > 18% (prev 0.43%; Δ 3.78k% > 0.5%) |
| Asset Turnover: 37.31% > 50% (prev 37.71%; Δ -0.40% > 0%) |
| Interest Coverage Ratio: 2.00 > 6 (EBITDA TTM 13.42b / Interest Expense TTM 2.20b) |
| A: -0.04 (Total Current Assets 11.74b - Total Current Liabilities 16.11b) / Total Assets 97.84b |
| B: -0.15 (Retained Earnings -14.43b / Total Assets 97.84b) |
| C: 0.04 (EBIT TTM 4.42b / Avg Total Assets 99.76b) |
| D: -0.23 (Book Value of Equity -15.04b / Total Liabilities 64.13b) |
| Altman-Z'' Score: -0.72 = B |
| DSRI: 1.11 (Receivables 5.01b/4.66b, Revenue 37.22b/38.34b) |
| GMI: 1.11 (GM 38.21% / 42.51%) |
| AQI: 1.00 (AQ_t 0.81 / AQ_t-1 0.81) |
| SGI: 0.97 (Revenue 37.22b / 38.34b) |
| TATA: -0.06 (NI -2.15b - CFO 3.56b) / TA 97.84b) |
| Beneish M-Score: -2.92 (Cap -4..+1) = A |
Over the past week, the price has changed by -0.51%, over one month by -1.17%, over three months by -5.87% and over the past year by +199.45%.
- StrongBuy: 11
- Buy: 3
- Hold: 12
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 29.7 | 9.4% |
P/S = 1.8307
P/B = 2.0863
P/EG = 216.9231
Revenue TTM = 37.22b USD
EBIT TTM = 4.42b USD
EBITDA TTM = 13.42b USD
Long Term Debt = 32.43b USD (from longTermDebt, last fiscal year)
Short Term Debt = 1.49b USD (from shortTermDebt, last quarter)
Debt = 33.92b USD (corrected: LT Debt 32.43b + ST Debt 1.49b)
Net Debt = 30.66b USD (recalculated: Debt 33.92b - CCE 3.26b)
Enterprise Value = 98.78b USD (68.12b + Debt 33.92b - CCE 3.26b)
Interest Coverage Ratio = 2.00 (Ebit TTM 4.42b / Interest Expense TTM 2.20b)
EV/FCF = 42.76x (Enterprise Value 98.78b / FCF TTM 2.31b)
FCF Yield = 2.34% (FCF TTM 2.31b / Enterprise Value 98.78b)
FCF Margin = 6.21% (FCF TTM 2.31b / Revenue TTM 37.22b)
Net Margin = -5.79% (Net Income TTM -2.15b / Revenue TTM 37.22b)
Gross Margin = 38.21% ((Revenue TTM 37.22b - Cost of Revenue TTM 23.00b) / Revenue TTM)
Gross Margin QoQ = 34.11% (prev 30.21%)
Tobins Q-Ratio = 1.01 (Enterprise Value 98.78b / Total Assets 97.84b)
Interest Expense / Debt = 1.72% (Interest Expense 583.0m / Debt 33.92b)
Taxrate = 21.0% (US default 21%)
NOPAT = 3.49b (EBIT 4.42b * (1 - 21.00%))
Current Ratio = 0.73 (Total Current Assets 11.74b / Total Current Liabilities 16.11b)
Debt / Equity = 1.04 (Debt 33.92b / totalStockholderEquity, last quarter 32.58b)
Debt / EBITDA = 2.28 (Net Debt 30.66b / EBITDA 13.42b)
Debt / FCF = 13.27 (Net Debt 30.66b / FCF TTM 2.31b)
Total Stockholder Equity = 35.14b (last 4 quarters mean from totalStockholderEquity)
RoA = -2.16% (Net Income -2.15b / Total Assets 97.84b)
RoE = -6.13% (Net Income TTM -2.15b / Total Stockholder Equity 35.14b)
RoCE = 6.53% (EBIT 4.42b / Capital Employed (Equity 35.14b + L.T.Debt 32.43b))
RoIC = 5.01% (NOPAT 3.49b / Invested Capital 69.57b)
WACC = 7.07% (E(68.12b)/V(102.04b) * Re(9.92%) + D(33.92b)/V(102.04b) * Rd(1.72%) * (1-Tc(0.21)))
Discount Rate = 9.92% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 77.78 | Cagr: 1.02%
[DCF] Terminal Value 80.74% ; FCFF base≈3.12b ; Y1≈2.84b ; Y5≈2.49b
[DCF] Fair Price = 9.88 (EV 55.43b - Net Debt 30.66b = Equity 24.77b / Shares 2.51b; r=7.07% [WACC]; 5y FCF grow -11.29% → 3.0% )
EPS Correlation: 4.64 | EPS CAGR: -67.46% | SUE: -3.19 | # QB: -1
Revenue Correlation: -72.32 | Revenue CAGR: -2.60% | SUE: 0.08 | # QB: 0
EPS current Quarter (2026-06-30): EPS=-0.08 | Chg30d=-22.71% | Revisions=-33% | Analysts=12
EPS next Quarter (2026-09-30): EPS=0.02 | Chg30d=-68.69% | Revisions=-56% | Analysts=13
EPS current Year (2026-12-31): EPS=-1.24 | Chg30d=-1400.00% | Revisions=-64% | GrowthEPS=-526.7% | GrowthRev=-0.8%
EPS next Year (2027-12-31): EPS=0.01 | Chg30d=N/A | Revisions=+9% | GrowthEPS=+100.7% | GrowthRev=+3.2%
[Analyst] Revisions Ratio: -64%