Warner Bros. Discovery, Inc.

NasdaqGS:WBD Stock Report

Market Cap: US$26.0b

Warner Bros. Discovery Valuation

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

Below Fair Value: WBD ($10.51) is trading below our estimate of fair value ($22.66)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for WBD. This is calculated by dividing WBD's market cap by their current revenue.
What is WBD's PS Ratio?
PS Ratio0.7x
SalesUS$39.58b
Market CapUS$26.03b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for WBD 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
4.2x13.5%US$24.6b
LYV Live Nation Entertainment
1.3x9.5%US$30.4b
FWON.K Formula One Group
6.3x7.7%US$23.1b
EDR Endeavor Group Holdings
1.3x3.0%US$14.7b
WBD Warner Bros. Discovery
0.7x1.1%US$26.0b

Price-To-Sales vs Peers: WBD is good value based on its Price-To-Sales Ratio (0.7x) compared to the peer average (3.3x).

Price to Sales Ratio vs Industry

How does WBD's PS Ratio compare vs other companies in the US Entertainment Industry?

23 CompaniesPrice / SalesEstimated GrowthMarket Cap
IQ iQIYI
0.5x1.8%US$2.00b
LGF.A Lions Gate Entertainment
0.5x5.0%US$1.80b
AMC AMC Entertainment Holdings
0.3x9.1%US$1.50b
RDBX Redbox Entertainment
0.08x34.4%US$76.65m
WBD 0.7xIndustry Avg. 1.3xNo. of Companies23PS0246810+
23 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: WBD is good value based on its Price-To-Sales Ratio (0.7x) compared to the US Entertainment industry average (1.3x).

Price to Sales Ratio vs Fair Ratio

What is WBD'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.

WBD PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.7x
Fair PS Ratio2x

Price-To-Sales vs Fair Ratio: WBD is good value based on its Price-To-Sales Ratio (0.7x) compared to the estimated Fair Price-To-Sales Ratio (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 WBD forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$10.51
US$12.62
+20.0%
26.7%US$22.00US$8.19n/a25
Dec ’25US$10.48
US$11.79
+12.5%
27.5%US$22.00US$8.19n/a25
Nov ’25US$8.23
US$10.56
+28.3%
34.5%US$22.00US$6.00n/a27
Oct ’25US$8.16
US$10.60
+29.9%
34.8%US$22.00US$6.00n/a27
Sep ’25US$7.84
US$10.58
+35.0%
35.0%US$22.00US$6.00n/a27
Aug ’25US$8.38
US$11.64
+38.9%
35.5%US$24.00US$7.00n/a27
Jul ’25US$7.10
US$12.16
+71.3%
33.5%US$24.00US$7.00n/a27
Jun ’25US$8.24
US$12.48
+51.4%
33.0%US$24.00US$7.00n/a26
May ’25US$7.62
US$13.35
+75.2%
30.2%US$24.00US$7.00n/a26
Apr ’25US$8.79
US$13.72
+56.1%
27.7%US$24.00US$8.50n/a25
Mar ’25US$8.67
US$13.80
+59.1%
29.2%US$24.00US$7.00n/a24
Feb ’25US$10.46
US$15.34
+46.6%
26.7%US$24.00US$9.00n/a24
Jan ’25US$11.38
US$16.64
+46.3%
25.4%US$25.00US$9.00n/a23
Dec ’24US$11.33
US$16.43
+45.0%
25.5%US$25.00US$9.00US$10.4823
Nov ’24US$10.08
US$18.47
+83.3%
22.0%US$26.00US$10.00US$8.2325
Oct ’24US$10.86
US$19.54
+80.0%
26.0%US$33.00US$10.00US$8.1623
Sep ’24US$11.56
US$20.11
+74.0%
28.2%US$33.00US$10.00US$7.8423
Aug ’24US$12.87
US$20.41
+58.6%
29.5%US$33.00US$10.00US$8.3823
Jul ’24US$12.54
US$20.92
+66.8%
31.0%US$36.00US$10.00US$7.1024
Jun ’24US$11.35
US$21.08
+85.8%
30.0%US$36.00US$11.00US$8.2424
May ’24US$13.29
US$21.41
+61.1%
30.1%US$36.00US$11.00US$7.6222
Apr ’24US$15.10
US$21.77
+44.2%
30.0%US$36.00US$11.00US$8.7922
Mar ’24US$15.02
US$21.71
+44.6%
31.4%US$36.00US$11.00US$8.6721
Feb ’24US$15.36
US$21.21
+38.1%
34.0%US$36.00US$9.00US$10.4621
Jan ’24US$9.48
US$20.63
+117.6%
35.8%US$36.00US$8.00US$11.3819
Dec ’23US$11.63
US$20.74
+78.3%
35.2%US$36.00US$8.00US$11.3319

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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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/30 06:59
End of Day Share Price 2024/12/30 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