Warner Bros. Discovery, Inc.

BIT:1WBD Stock Report

Market Cap: €60.9b

Warner Bros. Discovery Valuation

Is 1WBD undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 1WBD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1WBD (€24.34) is trading below our estimate of fair value (€25.3)

Significantly Below Fair Value: 1WBD is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1WBD?

Key metric: As 1WBD is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1WBD. This is calculated by dividing 1WBD's market cap by their current earnings.
What is 1WBD's PE Ratio?
PE Ratio146.1x
EarningsUS$489.00m
Market CapUS$71.46b

Price to Earnings Ratio vs Peers

How does 1WBD's PE Ratio compare to its peers?

The above table shows the PE ratio for 1WBD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average52.6x
UMG Universal Music Group
15.5x-7.31%€40.3b
SPOT Spotify Technology
72x24.62%US$119.7b
LYV Live Nation Entertainment
104.7x42.04%US$33.1b
TME Tencent Music Entertainment Group
18.3x7.91%US$27.7b
1WBD Warner Bros. Discovery
146.1x0.18%€71.5b

Price-To-Earnings vs Peers: 1WBD is expensive based on its Price-To-Earnings Ratio (146.1x) compared to the peer average (52.2x).

Price to Earnings Ratio vs Industry

How does 1WBD's PE Ratio compare vs other companies in the European Entertainment Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
1WBD 146.1xIndustry Avg. 13.8xNo. of Companies13PE01224364860+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1WBD is expensive based on its Price-To-Earnings Ratio (146.1x) compared to the European Entertainment industry average (14.1x).

Price to Earnings Ratio vs Fair Ratio

What is 1WBD's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1WBD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio146.1x
Fair PE Ratio17.5x

Price-To-Earnings vs Fair Ratio: 1WBD is expensive based on its Price-To-Earnings Ratio (146.1x) compared to the estimated Fair Price-To-Earnings Ratio (17.5x).

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 1WBD forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€24.34
€23.20
-4.68%
13.67%€29.80€17.03n/a15
Dec ’26€20.52
€19.38
-5.56%
20.36%€25.88€8.63n/a21
Nov ’26€19.50
€18.14
-6.99%
23.36%€25.94€8.65n/a21
Oct ’26€16.52
€13.26
-19.73%
24.43%€20.44€8.52n/a20
Sep ’26€9.94
€12.59
+26.58%
22.43%€20.57€8.57n/a21
Aug ’26€11.15
€12.55
+12.55%
25.73%€20.73€8.64n/a21
Jul ’26€9.32
€11.88
+27.46%
28.91%€20.36€7.63n/a22
Jun ’26€8.70
€11.99
+37.70%
28.76%€21.14€7.93n/a25
May ’26€7.50
€11.71
+56.08%
27.09%€21.17€6.17n/a24
Apr ’26€9.85
€12.45
+26.44%
22.29%€20.19€8.26n/a24
Mar ’26€10.95
€12.79
+16.83%
23.48%€21.21€8.68n/a25
Feb ’26€10.26
€12.20
+18.88%
26.34%€21.14€7.87n/a25
Jan ’26€10.09
€12.17
+20.63%
26.71%€21.22€7.90€24.6025
Dec ’25€9.84
€11.16
+13.39%
27.53%€20.82€7.75€20.5225
Nov ’25€7.45
€9.71
+30.24%
34.53%€20.23€5.52€19.5027
Oct ’25€7.36
€9.58
+30.07%
34.81%€19.87€5.42€16.5227
Sep ’25€7.01
€9.52
+35.84%
35.03%€19.79€5.40€9.9427
Aug ’25€7.75
€10.79
+39.26%
35.46%€22.24€6.49€11.1527
Jul ’25€6.68
€11.35
+69.83%
33.45%€22.39€6.53€9.3227
Jun ’25€7.83
€11.49
+46.79%
33.02%€22.10€6.44€8.7026
May ’25€6.94
€12.51
+80.22%
30.17%€22.48€6.56€7.5026
Apr ’25€8.08
€12.78
+58.12%
27.68%€22.34€7.91€9.8525
Mar ’25€8.11
€12.73
+56.90%
29.18%€22.15€6.46€10.9524
Feb ’25€9.41
€14.19
+50.78%
26.71%€22.21€8.33€10.2624
Jan ’25€10.53
€15.07
+43.14%
25.43%€22.64€8.15€10.0923
€23.01
Fair Value
5.8% overvalued intrinsic discount
15
Number of Analysts

Analyst Forecast: Target price is lower than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/01/02 04:04
End of Day Share Price 2026/01/02 00:00
Earnings2025/09/30
Annual Earnings2024/12/31

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.

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 Github.

Analyst Sources

Warner Bros. Discovery, Inc. is covered by 52 analysts. 21 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

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