Warner Bros. Discovery, Inc.

WBAG:WBDI Stock Report

Market Cap: €21.9b

Warner Bros. Discovery Valuation

Is WBDI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of WBDI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WBDI (€8.96) is trading below our estimate of fair value (€20.91)

Significantly Below Fair Value: WBDI is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for WBDI?

Key metric: As WBDI is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for WBDI. This is calculated by dividing WBDI's market cap by their current revenue.
What is WBDI's PS Ratio?
PS Ratio0.6x
SalesUS$39.58b
Market CapUS$23.23b

Price to Sales Ratio vs Peers

How does WBDI's PS Ratio compare to its peers?

The above table shows the PS ratio for WBDI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3.3x
TKO TKO Group Holdings
3.8x8.9%US$22.4b
LYV Live Nation Entertainment
1.3x9.3%US$31.0b
FWON.K Formula One Group
5.4x8.1%US$20.0b
WMG Warner Music Group
2.7x5.4%US$17.1b
WBDI Warner Bros. Discovery
0.6x1.0%€22.6b

Price-To-Sales vs Peers: WBDI is good value based on its Price-To-Sales Ratio (0.6x) compared to the peer average (3.3x).

Price to Sales Ratio vs Industry

How does WBDI's PS Ratio compare vs other companies in the European Entertainment Industry?

36 CompaniesPrice / SalesEstimated GrowthMarket Cap
WBDI 0.6xIndustry Avg. 1.4xNo. of Companies36PS01.63.24.86.48+
36 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: WBDI is good value based on its Price-To-Sales Ratio (0.6x) compared to the European Entertainment industry average (1.4x).

Price to Sales Ratio vs Fair Ratio

What is WBDI's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

WBDI PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.6x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate WBDI's Price-To-Sales Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst WBDI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€8.87
€10.82
+22.0%
28.6%€20.76€7.55n/a26
Nov ’25€7.44
€9.71
+30.4%
34.5%€20.23€5.52n/a27
Oct ’25€7.36
€9.54
+29.6%
34.8%€19.80€5.40n/a27
Sep ’25€7.00
€9.52
+36.0%
35.0%€19.79€5.40n/a27
Aug ’25€7.75
€10.72
+38.4%
35.5%€22.10€6.45n/a27
Jul ’25€6.72
€11.35
+68.9%
33.5%€22.39€6.53n/a27
Jun ’25€7.43
€11.49
+54.6%
33.0%€22.10€6.44n/a26
May ’25€6.95
€12.44
+79.2%
30.2%€22.37€6.53n/a26
Apr ’25€8.08
€12.66
+56.7%
27.7%€22.14€7.84n/a25
Mar ’25€8.10
€12.76
+57.7%
29.2%€22.20€6.48n/a24
Feb ’25€9.40
€14.19
+51.1%
26.7%€22.21€8.33n/a24
Jan ’25€10.55
€15.36
+45.6%
25.4%€23.08€8.31n/a23
Dec ’24€9.87
€15.05
+52.5%
25.5%€22.91€8.25n/a23
Nov ’24n/a
€17.32
0%
22.0%€24.38€9.38€7.4425
Oct ’24n/a
€18.29
0%
26.0%€30.88€9.36€7.3623
Sep ’24n/a
€18.43
0%
28.2%€30.25€9.17€7.0023
Aug ’24n/a
€18.40
0%
29.5%€29.75€9.01€7.7523
Jul ’24n/a
€19.56
0%
31.0%€33.67€9.35€6.7224
Jun ’24n/a
€19.42
0%
30.0%€33.16€10.13€7.4324
May ’24n/a
€19.51
0%
30.1%€32.81€10.03€6.9522
Apr ’24n/a
€20.42
0%
30.0%€33.76€10.31€8.0822
Mar ’24n/a
€20.37
0%
31.4%€33.76€10.32€8.1021
Feb ’24n/a
€19.52
0%
34.0%€33.12€8.28€9.4021
Jan ’24n/a
€19.59
0%
35.8%€34.18€7.60€10.5519
Dec ’23n/a
€20.34
0%
35.2%€35.32€7.85€9.8719
Nov ’23n/a
€23.70
0%
43.3%€47.61€8.93n/a19

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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