Warner Bros. Discovery, Inc.

NasdaqGS:WBD Stock Report

Market Cap: US$23.3b

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 ($9.95) is trading below our estimate of fair value ($21.18)

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 Ratio0.6x
SalesUS$39.58b
Market CapUS$23.31b

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 Average3.4x
TKO TKO Group Holdings
3.9x8.9%US$22.4b
LYV Live Nation Entertainment
1.4x9.3%US$31.5b
FWON.K Formula One Group
5.6x8.1%US$20.0b
WMG Warner Music Group
2.7x5.4%US$17.4b
WBD Warner Bros. Discovery
0.6x1.0%US$23.3b

Price-To-Sales vs Peers: WBD is good value based on its Price-To-Sales Ratio (0.6x) compared to the peer average (3.4x).

Price to Sales Ratio vs Industry

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

26 CompaniesPrice / SalesEstimated GrowthMarket Cap
IQ iQIYI
0.5x2.8%US$2.01b
LGF.A Lions Gate Entertainment
0.5x5.1%US$1.70b
AMC AMC Entertainment Holdings
0.4x9.0%US$1.63b
DOYU DouYu International Holdings
0.5x-5.2%US$312.88m
WBD 0.6xIndustry Avg. 1.4xNo. of Companies26PS0246810+
26 CompaniesEstimated GrowthMarket Cap
No more companies

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

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 Ratio0.6x
Fair PS Ratio1.9x

Price-To-Sales vs Fair Ratio: WBD is good value based on its Price-To-Sales Ratio (0.6x) compared to the estimated Fair Price-To-Sales Ratio (1.9x).

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$9.95
US$11.56
+16.2%
27.9%US$22.00US$8.00n/a26
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$9.00n/a23
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
Nov ’23US$13.35
US$23.89
+79.0%
43.3%US$48.00US$9.00US$10.0819

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

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