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Warner Bros. Discovery, Inc. — Intrinsic Value & Fair Price

WBD
NASDAQCommunication ServicesEntertainmentCIK 0001437107ir.wbd.comAbout WBD
Last close · Oct 5, 202630.95+0.00 (+0.00%)
Market cap$77.6B
Model value · DCF · Perpetuity growth · 5y
13.07
Warner Bros. Discovery closed at $30.95 — overvalued by 137% vs model.
6.08the model's range35.89

DCF · Perpetuity growth · 5y leads for mature & stable — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
2.77 – 12.84
Wall St. target
31.00 0% below
Above model, 1y
11 of 11 days

Price and model value

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How it is valued

Valued asMature & Stable
Revenue declining (~-5% recent)Decelerated from ~28% 5y CAGRThin margins (1.9% net margin)Highly cyclical earnings
What growth the price implies: the reverse DCF

Key figures

FY2025
P/E
107×
EV / EBITDA
11.2×
FCF yield
4.0%
Dividend yield, TTM
0.00%
Beta
1.54
Cost of capital (WACC)
8.60%
On the lists: #3 Near 52-week highs
Full financials

Analyst actions

third-party, quoted
09-29Argus Research · “Sell” from “Hold”downgrade
09-22Morgan Stanley · target31.00
07-27Seaport Global · “Neutral” from “Buy”downgrade
06-29Seaport Global · “Buy” from “Neutral”upgrade
Ratings, targets and estimates

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One email a week across every stock we cover: 13F filings, insider trades, earnings and new research. It covers the whole market, not just WBD. No account.

About Warner Bros. Discovery

Warner Bros. Discovery, Inc. operates as a prominent global media and entertainment conglomerate. Its operations are structured across three key divisions: Studios, Network, and Direct-to-Consumer (DTC). The Studios segment is responsible for the creation and theatrical release of feature films. It also develops and licenses television programming, serving both its internal network infrastructure and external partners, including direct-to-consumer platforms. Further, this segment manages the distribution of its film and television catalog to various third-party outlets and its proprietary television channels. Additionally, it encompasses streaming services, home entertainment distribution, licensing for themed attractions, and the creation of interactive games. The Network division oversees a comprehensive portfolio of television channels, both domestically and internationally. Its Direct-to-Consumer (DTC) segment focuses on delivering premium subscription television and streaming content directly to consumers. Beyond its operational structure, Warner Bros. Discovery commands an extensive intellectual property portfolio. This encompasses a vast array of iconic content, brands, and franchises spanning television, film, streaming, and gaming. Noteworthy examples include properties from the Warner Bros. Motion Picture Group and Television Group, DC, HBO, Max, Discovery Channel, CNN, HGTV, Food Network, TNT Sports, TBS, TLC, OWN, Warner Bros. Games, as well as beloved sagas like Batman, Superman, Wonder Woman, Harry Potter, Looney Tunes, Hanna-Barbera, Game of Thrones, and The Lord of the Rings. The company distributes its content through a multitude of channels, ranging from traditional linear, free-to-air, and broadcast television to authenticated digital applications, various digital distribution partnerships, content licensing agreements, and proprietary direct-to-consumer subscription offerings. Established in 2008, Warner Bros. Discovery, Inc. maintains its corporate headquarters in New York City.

CEO
David Zaslav
Headquarters
New York City, NY
Employees
35,500
IPO
2005-07-08
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.