WARNER BROS DISCOVERY INC (WBD) Fundamental Analysis & Valuation

NASDAQ:WBD • US9344231041

Current stock price

27.35 USD
-0.29 (-1.05%)
At close:
27.27 USD
-0.08 (-0.29%)
After Hours:

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.
  • WBD had a positive operating cash flow in the past year.
  • The reported net income has been mixed in the past 5 years: WBD reported negative net income in multiple years.
  • WBD had a positive operating cash flow in each of the past 5 years.
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

  • WBD's Return On Assets of 0.73% is fine compared to the rest of the industry. WBD outperforms 65.82% of its industry peers.
  • WBD has a better Return On Equity (2.02%) than 70.89% of its industry peers.
  • 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

  • WBD has a better Profit Margin (1.95%) than 68.35% of its industry peers.
  • WBD's Profit Margin has declined in the last couple of years.
  • The Operating Margin of WBD (3.78%) is better than 68.35% of its industry peers.
  • WBD's Operating Margin has declined in the last couple of years.
  • WBD's Gross Margin of 44.27% is in line compared to the rest of the industry. WBD outperforms 51.90% of its industry peers.
  • 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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. WBD Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
  • Compared to 1 year ago, WBD has an improved debt to assets ratio.
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.
  • With a Altman-Z score value of 0.91, WBD perfoms like the industry average, outperforming 50.63% of the companies in the same industry.
  • WBD has a debt to FCF ratio of 10.55. This is a negative value and a sign of low solvency as WBD would need 10.55 years to pay back of all of its debts.
  • The Debt to FCF ratio of WBD (10.55) is better than 69.62% of its industry peers.
  • WBD has a Debt/Equity ratio of 0.90. This is a neutral value indicating WBD is somewhat dependend on debt financing.
  • WBD's Debt to Equity ratio of 0.90 is on the low side compared to the rest of the industry. WBD is outperformed by 60.76% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.9
Debt/FCF 10.55
Altman-Z 0.91
ROIC/WACC0.13
WACC9.67%
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

  • A Current Ratio of 1.06 indicates that WBD should not have too much problems paying its short term obligations.
  • WBD has a Current ratio (1.06) which is in line with its industry peers.
  • WBD has a Quick 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.
  • WBD has a Quick ratio (1.06) which is comparable to the rest of the 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

More info and screens

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.
  • WBD shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -38.17% yearly.
  • The Revenue has decreased by -5.15% in the past year.
  • WBD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 28.44% yearly.
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

  • The Earnings Per Share is expected to grow by 33.77% on average over the next years. This is a very strong growth
  • The Revenue is expected to grow by 1.10% on average over the next years.
EPS Next Y-143.43%
EPS Next 2Y-54.75%
EPS Next 3Y-43.94%
EPS Next 5Y33.77%
Revenue Next Year0.25%
Revenue Next 2Y0.89%
Revenue Next 3Y1.18%
Revenue Next 5Y1.1%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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

More info and screens

Find the best growth stocksShow best growing peers

3

4. WBD Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 94.31, WBD can be considered very expensive at the moment.
  • Based on the Price/Earnings ratio, WBD is valued a bit cheaper than the industry average as 64.56% of the companies are valued more expensively.
  • WBD is valuated expensively when we compare the Price/Earnings ratio to 25.79, which is the current average of the S&P500 Index.
  • The Forward Price/Earnings Ratio is negative for WBD. No positive earnings are expected for the next year.
Industry RankSector Rank
PE 94.31
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 -100 -200

4.2 Price Multiples

  • WBD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. WBD is cheaper than 88.61% of the companies in the same industry.
  • WBD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. WBD is cheaper than 81.01% of the companies in the same industry.
Industry RankSector Rank
P/FCF 21.96
EV/EBITDA 5.1
WBD Per share dataWBD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10 -10 15

4.3 Compensation for Growth

  • A cheap valuation may be justified as WBD's earnings are expected to decrease with -43.94% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-54.75%
EPS Next 3Y-43.94%

More info and screens

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%

More info and screens

Find the best dividend stocksShow peers with best dividend

WBD Fundamentals: All Metrics, Ratios and Statistics

WARNER BROS DISCOVERY INC

NASDAQ:WBD (3/18/2026, 8:00:01 PM)

After market: 27.27 -0.08 (-0.29%)

27.35

-0.29 (-1.05%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)02-26
Earnings (Next)05-06
Inst Owners73.79%
Inst Owner Change-1.47%
Ins Owners0.58%
Ins Owner Change-0.48%
Market Cap67.83B
Revenue(TTM)37.30B
Net Income(TTM)727.00M
Analysts65.19
Price Target29.41 (7.53%)
Short Float %2.61%
Short Ratio2.45
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)0.62%
PT rev (3m)27.52%
EPS NQ rev (1m)-1.4%
EPS NQ rev (3m)-16.31%
EPS NY rev (1m)-742.5%
EPS NY rev (3m)-674.6%
Revenue NQ rev (1m)1.03%
Revenue NQ rev (3m)0.48%
Revenue NY rev (1m)0.98%
Revenue NY rev (3m)1.05%
Valuation
Industry RankSector Rank
PE 94.31
Fwd PE N/A
P/S 1.82
P/FCF 21.96
P/OCF 15.7
P/B 1.89
P/tB N/A
EV/EBITDA 5.1
EPS(TTM)0.29
EY1.06%
EPS(NY)-0.13
Fwd EYN/A
FCF(TTM)1.25
FCFY4.55%
OCF(TTM)1.74
OCFY6.37%
SpS15.04
BVpS14.48
TBVpS-14.88
PEG (NY)N/A
PEG (5Y)N/A
Graham Number9.72
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
WACC9.67%
ROIC/WACC0.13
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-143.43%
EPS Next 2Y-54.75%
EPS Next 3Y-43.94%
EPS Next 5Y33.77%
Revenue 1Y (TTM)-5.15%
Revenue growth 3Y3.32%
Revenue growth 5Y28.44%
Sales Q2Q%-5.65%
Revenue Next Year0.25%
Revenue Next 2Y0.89%
Revenue Next 3Y1.18%
Revenue Next 5Y1.1%
EBIT growth 1Y144.44%
EBIT growth 3YN/A
EBIT growth 5Y-13.97%
EBIT Next Year737.05%
EBIT Next 3Y103.3%
EBIT Next 5Y53.35%
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 3 / 10 to WARNER BROS DISCOVERY INC (WBD). This can be considered as Overvalued.


How profitable is WARNER BROS DISCOVERY INC (WBD) stock?

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


What are the PE and PB ratios of WARNER BROS DISCOVERY INC (WBD) stock?

The Price/Earnings (PE) ratio for WARNER BROS DISCOVERY INC (WBD) is 94.31 and the Price/Book (PB) ratio is 1.89.


How financially healthy is WARNER BROS DISCOVERY INC?

The financial health rating of WARNER BROS DISCOVERY INC (WBD) is 3 / 10.