Warner Bros. Discovery, Inc.

XTRA:J5A Stock Report

Market Cap: €25.1b

Warner Bros. Discovery Valuation

Is J5A undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • 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 J5A when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: J5A (€10.19) is trading below our estimate of fair value (€22.98)

Significantly Below Fair Value: J5A is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for J5A?

Key metric: As J5A is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for J5A. This is calculated by dividing J5A's market cap by their current revenue.
What is J5A's PS Ratio?
PS Ratio0.7x
SalesUS$39.58b
Market CapUS$26.22b

Price to Sales Ratio vs Peers

How does J5A's PS Ratio compare to its peers?

The above table shows the PS ratio for J5A vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2x
EVD CTS Eventim KGaA
3x6.8%€7.9b
BVB Borussia Dortmund GmbH Kommanditgesellschaft auf Aktien
0.6x0.8%€343.8m
LOU DEAG Deutsche Entertainment
0.3xn/a€92.4m
TKO TKO Group Holdings
4.2x11.5%US$24.5b
J5A Warner Bros. Discovery
0.7x1.1%€26.2b

Price-To-Sales vs Peers: J5A is good value based on its Price-To-Sales Ratio (0.7x) compared to the peer average (2x).

Price to Sales Ratio vs Industry

How does J5A's PS Ratio compare vs other companies in the European Entertainment Industry?

38 CompaniesPrice / SalesEstimated GrowthMarket Cap
J5A 0.7xIndustry Avg. 1.5xNo. of Companies38PS01.63.24.86.48+
38 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: J5A is good value based on its Price-To-Sales Ratio (0.7x) compared to the European Entertainment industry average (1.5x).

Price to Sales Ratio vs Fair Ratio

What is J5A'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.

J5A PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.7x
Fair PS Ratio3.2x

Price-To-Sales vs Fair Ratio: J5A is good value based on its Price-To-Sales Ratio (0.7x) compared to the estimated Fair Price-To-Sales Ratio (3.2x).

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 J5A forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€10.19
€12.17
+19.4%
26.7%€21.22€7.90n/a25
Dec ’25€9.84
€11.16
+13.4%
27.5%€20.82€7.75n/a25
Nov ’25€7.46
€9.71
+30.1%
34.5%€20.23€5.52n/a27
Oct ’25€7.37
€9.54
+29.4%
34.8%€19.80€5.40n/a27
Sep ’25€7.00
€9.52
+35.9%
35.0%€19.79€5.40n/a27
Aug ’25€7.75
€10.72
+38.3%
35.5%€22.10€6.45n/a27
Jul ’25€6.72
€11.35
+68.9%
33.5%€22.39€6.53n/a27
Jun ’25€7.79
€11.49
+47.5%
33.0%€22.10€6.44n/a26
May ’25€6.97
€12.44
+78.5%
30.2%€22.37€6.53n/a26
Apr ’25€8.07
€12.66
+56.9%
27.7%€22.14€7.84n/a25
Mar ’25€8.11
€12.76
+57.4%
29.2%€22.20€6.48n/a24
Feb ’25€9.43
€14.19
+50.5%
26.7%€22.21€8.33n/a24
Jan ’25€10.60
€15.36
+45.0%
25.4%€23.08€8.31n/a23
Dec ’24€9.87
€15.05
+52.4%
25.5%€22.91€8.25€9.8423
Nov ’24€9.56
€17.32
+81.2%
22.0%€24.38€9.38€7.4625
Oct ’24€10.32
€18.29
+77.3%
26.0%€30.88€9.36€7.3723
Sep ’24€11.08
€18.43
+66.4%
28.2%€30.25€9.17€7.0023
Aug ’24€11.79
€18.40
+56.1%
29.5%€29.75€9.01€7.7523
Jul ’24€11.43
€19.56
+71.2%
31.0%€33.67€9.35€6.7224
Jun ’24€10.67
€19.42
+82.1%
30.0%€33.16€10.13€7.7924
May ’24€12.34
€19.51
+58.1%
30.1%€32.81€10.03€6.9722
Apr ’24€13.84
€20.42
+47.5%
30.0%€33.76€10.31€8.0722
Mar ’24€14.30
€20.37
+42.4%
31.4%€33.76€10.32€8.1121
Feb ’24€13.70
€19.52
+42.4%
34.0%€33.12€8.28€9.4321
Jan ’24€8.67
€19.59
+125.9%
35.8%€34.18€7.60€10.6019
Dec ’23€11.28
€20.34
+80.4%
35.2%€35.32€7.85€9.8719

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 04:51
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Warner Bros. Discovery, Inc. is covered by 67 analysts. 26 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Andrew Charles BealeArete Research Services LLP
Pierre-Marie D'OrnanoArete Research Services LLP
Joseph BonnerArgus Research Company