WARNER BROS DISCOVERY INC (WBD) Fundamental Analysis & Valuation

NASDAQ:WBD • US9344231041

Current stock price

27.391 USD
-0.05 (-0.18%)
Last:

This WBD fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. WBD Profitability Analysis

1.1 Basic Checks

  • WBD had positive earnings in the past year.
  • In the past year WBD had a positive cash flow from operations.
  • In multiple years WBD reported negative net income over the last 5 years.
  • In the past 5 years WBD always reported a positive cash flow from operatings.
WBD Yearly Net Income VS EBIT VS OCF VS FCFWBD Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B -5B -10B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 0.73%, WBD is in the better half of the industry, outperforming 67.09% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 2.02%, WBD is in the better half of the industry, outperforming 70.89% of the companies in the same industry.
  • The Return On Invested Capital of WBD (1.27%) is better than 65.82% of its industry peers.
Industry RankSector Rank
ROA 0.73%
ROE 2.02%
ROIC 1.27%
ROA(3y)-4.21%
ROA(5y)-3.18%
ROE(3y)-12.71%
ROE(5y)-9.43%
ROIC(3y)N/A
ROIC(5y)N/A
WBD Yearly ROA, ROE, ROICWBD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 -20 -30

1.3 Margins

  • Looking at the Profit Margin, with a value of 1.95%, WBD is in the better half of the industry, outperforming 69.62% of the companies in the same industry.
  • In the last couple of years the Profit Margin of WBD has declined.
  • Looking at the Operating Margin, with a value of 3.78%, WBD is in the better half of the industry, outperforming 69.62% of the companies in the same industry.
  • In the last couple of years the Operating Margin of WBD has declined.
  • The Gross Margin of WBD (44.27%) is comparable to the rest of the industry.
  • In the last couple of years the Gross Margin of WBD has declined.
Industry RankSector Rank
OM 3.78%
PM (TTM) 1.95%
GM 44.27%
OM growth 3YN/A
OM growth 5Y-33.02%
PM growth 3YN/A
PM growth 5Y-25.71%
GM growth 3Y3.49%
GM growth 5Y-7.3%
WBD Yearly Profit, Operating, Gross MarginsWBD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 60

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3

2. WBD Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WBD is destroying value.
  • Compared to 1 year ago, WBD has more shares outstanding
  • The number of shares outstanding for WBD has been increased compared to 5 years ago.
  • The debt/assets ratio for WBD has been reduced compared to a year ago.
WBD Yearly Shares OutstandingWBD Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B
WBD Yearly Total Debt VS Total AssetsWBD Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B

2.2 Solvency

  • Based on the Altman-Z score of 0.91, we must say that WBD is in the distress zone and has some risk of bankruptcy.
  • WBD has a Altman-Z score (0.91) which is in line with its industry peers.
  • The Debt to FCF ratio of WBD is 10.55, which is on the high side as it means it would take WBD, 10.55 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 10.55, WBD is in the better half of the industry, outperforming 69.62% of the companies in the same industry.
  • A Debt/Equity ratio of 0.90 indicates that WBD is somewhat dependend on debt financing.
  • WBD has a worse Debt to Equity ratio (0.90) than 62.03% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.9
Debt/FCF 10.55
Altman-Z 0.91
ROIC/WACC0.15
WACC8.49%
WBD Yearly LT Debt VS Equity VS FCFWBD Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B

2.3 Liquidity

  • WBD has a Current Ratio of 1.06. This is a normal value and indicates that WBD is financially healthy and should not expect problems in meeting its short term obligations.
  • The Current ratio of WBD (1.06) is comparable to the rest of the industry.
  • A Quick Ratio of 1.06 indicates that WBD should not have too much problems paying its short term obligations.
  • With a Quick ratio value of 1.06, WBD perfoms like the industry average, outperforming 48.10% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.06
Quick Ratio 1.06
WBD Yearly Current Assets VS Current LiabilitesWBD Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. WBD Growth Analysis

3.1 Past

  • WBD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 131.87%, which is quite impressive.
  • The earnings per share for WBD have been decreasing by -38.17% on average. This is quite bad
  • The Revenue has decreased by -5.15% in the past year.
  • The Revenue has been growing by 28.44% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)131.87%
EPS 3YN/A
EPS 5Y-38.17%
EPS Q2Q%50%
Revenue 1Y (TTM)-5.15%
Revenue growth 3Y3.32%
Revenue growth 5Y28.44%
Sales Q2Q%-5.65%

3.2 Future

  • WBD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 33.77% yearly.
  • The Revenue is expected to grow by 1.10% on average over the next years.
EPS Next Y-147.24%
EPS Next 2Y-86.8%
EPS Next 3Y-29.63%
EPS Next 5Y33.77%
Revenue Next Year0.19%
Revenue Next 2Y0.9%
Revenue Next 3Y1.24%
Revenue Next 5Y1.1%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
WBD Yearly Revenue VS EstimatesWBD Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B 40B
WBD Yearly EPS VS EstimatesWBD Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 2 -2 -4

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2

4. WBD Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 94.45 indicates a quite expensive valuation of WBD.
  • Compared to the rest of the industry, the Price/Earnings ratio of WBD indicates a somewhat cheap valuation: WBD is cheaper than 63.29% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.86, WBD is valued quite expensively.
  • WBD is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE 94.45
Fwd PE N/A
WBD Price Earnings VS Forward Price EarningsWBD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 50 -50 -100 -150

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WBD indicates a rather cheap valuation: WBD is cheaper than 88.61% of the companies listed in the same industry.
  • WBD's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WBD is cheaper than 79.75% of the companies in the same industry.
Industry RankSector Rank
P/FCF 22.24
EV/EBITDA 5.11
WBD Per share dataWBD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10 -10

4.3 Compensation for Growth

  • A cheap valuation may be justified as WBD's earnings are expected to decrease with -29.63% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-86.8%
EPS Next 3Y-29.63%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. WBD Dividend Analysis

5.1 Amount

  • WBD does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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WBD Fundamentals: All Metrics, Ratios and Statistics

WARNER BROS DISCOVERY INC

NASDAQ:WBD (4/13/2026, 3:19:07 PM)

27.391

-0.05 (-0.18%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)02-26
Earnings (Next)05-07
Inst Owners72.86%
Inst Owner Change0.11%
Ins Owners0.26%
Ins Owner Change-1.06%
Market Cap68.66B
Revenue(TTM)37.30B
Net Income(TTM)727.00M
Analysts64.62
Price Target29.55 (7.88%)
Short Float %2.01%
Short Ratio1.82
Dividend
Industry RankSector Rank
Dividend Yield 0%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-133.07%
Min EPS beat(2)-222.4%
Max EPS beat(2)-43.74%
EPS beat(4)1
Avg EPS beat(4)23.87%
Min EPS beat(4)-222.4%
Max EPS beat(4)398.54%
EPS beat(8)2
Avg EPS beat(8)-168.21%
EPS beat(12)2
Avg EPS beat(12)-908.45%
EPS beat(16)4
Avg EPS beat(16)-388.22%
Revenue beat(2)1
Avg Revenue beat(2)-0.98%
Min Revenue beat(2)-2.12%
Max Revenue beat(2)0.16%
Revenue beat(4)1
Avg Revenue beat(4)-2.45%
Min Revenue beat(4)-7.39%
Max Revenue beat(4)0.16%
Revenue beat(8)1
Avg Revenue beat(8)-2.91%
Revenue beat(12)1
Avg Revenue beat(12)-2.44%
Revenue beat(16)1
Avg Revenue beat(16)-7.13%
PT rev (1m)0.48%
PT rev (3m)6.38%
EPS NQ rev (1m)11.49%
EPS NQ rev (3m)-10.53%
EPS NY rev (1m)-8.76%
EPS NY rev (3m)-229.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.01%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)1%
Valuation
Industry RankSector Rank
PE 94.45
Fwd PE N/A
P/S 1.84
P/FCF 22.24
P/OCF 15.9
P/B 1.91
P/tB N/A
EV/EBITDA 5.11
EPS(TTM)0.29
EY1.06%
EPS(NY)-0.14
Fwd EYN/A
FCF(TTM)1.23
FCFY4.5%
OCF(TTM)1.72
OCFY6.29%
SpS14.88
BVpS14.33
TBVpS-14.72
PEG (NY)N/A
PEG (5Y)N/A
Graham Number9.67
Profitability
Industry RankSector Rank
ROA 0.73%
ROE 2.02%
ROCE 1.61%
ROIC 1.27%
ROICexc 1.34%
ROICexgc 10.9%
OM 3.78%
PM (TTM) 1.95%
GM 44.27%
FCFM 8.28%
ROA(3y)-4.21%
ROA(5y)-3.18%
ROE(3y)-12.71%
ROE(5y)-9.43%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y-26.13%
ROICexc growth 3YN/A
ROICexc growth 5Y-30.33%
OM growth 3YN/A
OM growth 5Y-33.02%
PM growth 3YN/A
PM growth 5Y-25.71%
GM growth 3Y3.49%
GM growth 5Y-7.3%
F-Score7
Asset Turnover0.37
Health
Industry RankSector Rank
Debt/Equity 0.9
Debt/FCF 10.55
Debt/EBITDA 1.71
Cap/Depr 7.02%
Cap/Sales 3.3%
Interest Coverage 250
Cash Conversion 22.8%
Profit Quality 424.76%
Current Ratio 1.06
Quick Ratio 1.06
Altman-Z 0.91
F-Score7
WACC8.49%
ROIC/WACC0.15
Cap/Depr(3y)5.74%
Cap/Depr(5y)5.84%
Cap/Sales(3y)2.97%
Cap/Sales(5y)2.97%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)131.87%
EPS 3YN/A
EPS 5Y-38.17%
EPS Q2Q%50%
EPS Next Y-147.24%
EPS Next 2Y-86.8%
EPS Next 3Y-29.63%
EPS Next 5Y33.77%
Revenue 1Y (TTM)-5.15%
Revenue growth 3Y3.32%
Revenue growth 5Y28.44%
Sales Q2Q%-5.65%
Revenue Next Year0.19%
Revenue Next 2Y0.9%
Revenue Next 3Y1.24%
Revenue Next 5Y1.1%
EBIT growth 1Y144.44%
EBIT growth 3YN/A
EBIT growth 5Y-13.97%
EBIT Next Year724.59%
EBIT Next 3Y101.33%
EBIT Next 5Y53.17%
FCF growth 1Y-30.25%
FCF growth 3Y-2.36%
FCF growth 5Y5.73%
OCF growth 1Y-19.65%
OCF growth 3Y0.12%
OCF growth 5Y9.54%

WARNER BROS DISCOVERY INC / WBD Fundamental Analysis FAQ

What is the fundamental rating for WBD stock?

ChartMill assigns a fundamental rating of 4 / 10 to WBD.


What is the valuation status of WARNER BROS DISCOVERY INC (WBD) stock?

ChartMill assigns a valuation rating of 2 / 10 to WARNER BROS DISCOVERY INC (WBD). This can be considered as Overvalued.


Can you provide the profitability details for WARNER BROS DISCOVERY INC?

WARNER BROS DISCOVERY INC (WBD) has a profitability rating of 4 / 10.


What is the valuation of WARNER BROS DISCOVERY INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for WARNER BROS DISCOVERY INC (WBD) is 94.45 and the Price/Book (PB) ratio is 1.91.


Can you provide the expected EPS growth for WBD stock?

The Earnings per Share (EPS) of WARNER BROS DISCOVERY INC (WBD) is expected to decline by -147.24% in the next year.