(WBD) Warner Bros Discovery - NASDAQ
Sector: Communication Services | Industry: Entertainment | Exchange: NASDAQ (USA) | Market Cap: 66.928m USD | Total Return: 148% in 12m
Avg Turnover: 572M
Qual. Beats: -1
Rev. Trend: -99.1%
Qual. Beats: 0
Warnings
Interest Coverage Ratio 0.5 is critical
Altman Z'' -0.16 < 1.0 - financial distress zone
Below Avwap Earnings
Tailwinds
Idiosyncratic 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: -1.74b 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 -1.74b |
| Net Debt (29.2b) to EBITDA (12.7b): 2.31 < 3 |
| Current Ratio: 0.73 > 1.5 & < 3 |
| Outstanding Shares: last quarter (2.49b) vs 12m ago 1.22% < -2% |
| Gross Margin: 41.48% > 18% (prev 42.51%; Δ -1.03% > 0.5%) |
| Asset Turnover: 37.30% > 50% (prev 37.71%; Δ -0.41% > 0%) |
| Interest Coverage Ratio: 0.52 > 6 (EBIT TTM 1.15b / Interest Expense TTM 2.20b) |
| A: -0.04 (Total Current Assets 11.7b - Total Current Liabilities 16.1b) / Total Assets 97.8b |
| B: -0.15 (Retained Earnings -14.4b / Total Assets 97.8b) |
| C: 0.01 (EBIT TTM 1.15b / Avg Total Assets 99.8b) |
| D: 0.51 (Book Value of Equity 32.6b / Total Liabilities 64.1b) |
| Altman-Z'' = -0.16 = B |
| DSRI: 1.11 (Receivables 5.01b/4.66b, Revenue 37.2b/38.3b) |
| GMI: 1.02 (GM 42.51% / 41.48%) |
| AQI: 1.00 (AQ_t 0.81 / AQ_t-1 0.81) |
| SGI: 0.97 (Revenue 37.2b / 38.3b) |
| TATA: -0.05 (NI -1.74b - CFO 3.56b) / TA 97.8b) |
| Beneish M = -2.94 (Cap -4..+1) = A |
As of June 18, 2026, the stock is trading at USD 26.24 with a total of 18,612,170 shares traded.
Over the past week, the price has changed by +0.04%,
over one month by -3.17%,
over three months by -5.07% and
over the past year by +148.02%.
Warner Bros Discovery has received a consensus analysts rating of 3.85. Therefore, it is recommended to buy WBD.
- StrongBuy: 11
- Buy: 3
- Hold: 12
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 29.7 | 13% |
P/E Forward = 2500.0
P/S = 1.7987
P/B = 2.0648
P/EG = 216.9231
Revenue TTM = 37.2b USD
EBIT TTM = 1.15b USD
EBITDA TTM = 12.7b USD
Long Term Debt = 31.0b USD (from longTermDebt, last quarter)
Short Term Debt = 1.49b USD (from shortTermDebt, last quarter)
Debt = 32.5b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 29.2b USD (calculated: Debt 32.5b - CCE 3.26b)
Enterprise Value = 96.1b USD (66.9b + Debt 32.5b - CCE 3.26b)
Interest Coverage Ratio = 0.52 (Ebit TTM 1.15b / Interest Expense TTM 2.20b)
EV/FCF = 41.61x (Enterprise Value 96.1b / FCF TTM 2.31b)
FCF Yield = 2.40% (FCF TTM 2.31b / Enterprise Value 96.1b)
FCF Margin = 6.21% (FCF TTM 2.31b / Revenue TTM 37.2b)
Net Margin = -4.67% (Net Income TTM -1.74b / Revenue TTM 37.2b)
Gross Margin = 41.48% ((Revenue TTM 37.2b - Cost of Revenue TTM 21.8b) / Revenue TTM)
Gross Margin QoQ = 47.79% (prev 30.21%)
Tobins Q-Ratio = 0.98 (Enterprise Value 96.1b / Total Assets 97.8b)
Interest Expense / Debt = 6.77% (Interest Expense 2.20b / Debt 32.5b)
Taxrate = 21.0% (US federal default 21%)
NOPAT = 910.9m (EBIT 1.15b * (1 - 21.00%))
Current Ratio = 0.73 (Total Current Assets 11.7b / Total Current Liabilities 16.1b)
Debt / Equity = 1.00 (Debt 32.5b / totalStockholderEquity, last quarter 32.6b)
Debt / EBITDA = 2.31 (Net Debt 29.2b / EBITDA 12.7b)
Debt / FCF = 12.64 (Net Debt 29.2b / FCF TTM 2.31b)
Total Stockholder Equity = 35.1b (last 4 quarters mean from totalStockholderEquity)
RoA = -1.74% (Net Income -1.74b / Total Assets 97.8b)
RoE = -4.94% (Net Income TTM -1.74b / Total Stockholder Equity 35.1b)
RoCE = 1.74% (EBIT 1.15b / Capital Employed (Equity 35.1b + L.T.Debt 31.0b))
RoIC = 1.12% (NOPAT 910.9m / Invested Capital 81.4b)
WACC = 8.40% (E(66.9b)/V(99.4b) * Re(9.88%) + D(32.5b)/V(99.4b) * Rd(6.77%) * (1-Tc(0.21)))
Discount Rate = 9.88% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 77.78 | Cagr: 1.02%
[DCF] Terminal Value 72.91% ; FCFF base≈3.12b ; Y1≈2.74b ; Y5≈2.21b
[DCF] Fair Price = 2.40 (EV 35.2b - Net Debt 29.2b = Equity 6.01b / Shares 2.51b; r=8.40% [WACC]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -3.54 | # QB: -1
Revenue Correlation: -99.05 | Revenue CAGR: -4.63% | SUE: 0.03 | # QB: 0
EPS current Quarter (2026-06-30): EPS=-0.07 | Chg30d=+5.62% | Revisions=-17% | Analysts=12
EPS next Quarter (2026-09-30): EPS=0.01 | Chg30d=-80.85% | Revisions=-54% | Analysts=14
EPS current Year (2026-12-31): EPS=-1.25 | Chg30d=N/A | Revisions=-73% | GrowthEPS=-529.9% | GrowthRev=-0.9%
EPS next Year (2027-12-31): EPS=0.01 | Chg30d=N/A | Revisions=+14% | GrowthEPS=+101.2% | GrowthRev=+3.3%
[Analyst] Revisions Ratio: -73%