---
title: Warner Bros. Discovery (WBD) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/wbd
ticker: WBD
as_of: 2026-10-17
sector: Communication Services
industry: Entertainment
---
# Warner Bros. Discovery (WBD)

Warner Bros. Discovery (WBD) closed at $30.95 on Oct 5, 2026, overvalued by 137% vs its model value of $13.07 (from a five-year discounted cash flow).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $30.95 (Oct 5, 2026) |
| Model value (from a five-year discounted cash flow) | $13.07 |
| Price vs model | overvalued by 137% vs model |
| Range of that model | $6.08 – $35.89 |
| Market value | $77.6B |
| P/E (fiscal 2025) | 106.7 |
| Net margin (fiscal 2025) | 1.9% |
| Free cash flow (fiscal 2025) | $3.1B |
| Dividend yield (trailing twelve months) | 0.00% |
| Beta | 1.54 |
| Cost of capital (WACC) | 8.60% |
| Business classification | Mature & Stable (Revenue declining (~-5% recent), Decelerated from ~28% 5y CAGR, Thin margins (1.9% net margin), Highly cyclical earnings) |

## On the stock lists

| List | Place | Figure | Page |
| --- | ---: | ---: | --- |
| Near 52-week highs | #3 | 0.0% | https://sweetvaluelab.com/lists/near-52-week-highs |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | primary | $13.07 | $6.08 | $35.89 |
| DCF · Perpetuity growth · 10y | cross check | $12.84 | $6.57 | $32.70 |
| DCF · EBITDA exit · 5y | cross check | $9.63 | $1.65 | $19.08 |
| DCF · EBITDA exit · 10y | cross check | $10.45 | $3.69 | $19.60 |
| P/E · peers | cross check | $2.77 | $1.36 | $4.64 |
| P/E · own history | cross check | $4.69 | $2.72 | $27.11 |
| PEG | sanity check | $0.00 | $0.00 | $0.00 |
| EV/EBITDA · peers | cross check | $8.82 | $0.68 | $13.90 |
| EV/Revenue · peers | cross check | $11.09 | $6.52 | $24.06 |
| Earnings power value | cross check | $4.10 | $1.85 | $7.31 |
| Dividend discount | cross check | $0.00 | $0.00 | $0.00 |

## Insider activity (SEC Form 4)

No open-market insider buys or sales filed in the past 90 days.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| Oct 6, 2026 | Zeiler Gerhard | President, International | Disposition to issuer | 262,864 | $8.2M |
| Oct 6, 2026 | Zeiler Gerhard | President, International | Disposition to issuer | 188,193 | — |
| Oct 6, 2026 | Zeiler Gerhard | President, International | Disposition to issuer | 101,326 | — |
| Oct 6, 2026 | Zeiler Gerhard | President, International | Disposition to issuer | 2,236,849 | $69.4M |
| Oct 6, 2026 | Zeiler Gerhard | President, International | Grant / award | 2,236,849 | $0 |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Oct 6, 2026 | 8-K | 3.01 Notice of Delisting; 5.01 Change in Control; 1.01 Entry into a Material Agreement; 1.02 Termination of a Material Agreement; 2.01 Completion of Acquisition/Disposition; 2.03 Creation of a Direct Financial Obligation; 3.03 Modification to Security-Holder Rights; 5.02 Departure/Election of Directors or Officers; 5.03 Amendment to Articles/Bylaws; 8.01 Other Events; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1437107/000119312526415055/d200872d8k.htm |
| Aug 6, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/1437107/000143710726000075/wbd-20260630.htm |
| Aug 6, 2026 | 8-K | 2.02 Results of Operations (Earnings); 7.01 Regulation FD Disclosure; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1437107/000143710726000072/disca-20260806.htm |
| Jun 12, 2026 | 8-K | 5.07 Submission of Matters to a Shareholder Vote | https://www.sec.gov/Archives/edgar/data/1437107/000119312526268519/d123211d8k.htm |
| Jun 4, 2026 | 8-K | 1.01 Entry into a Material Agreement; 2.03 Creation of a Direct Financial Obligation; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1437107/000119312526256559/d11897d8k.htm |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| Loeb | 2026-06-30 | 20,000,000 | $533.2M |
| Bill Nygren | 2026-06-30 | 4,803,194 | $128.1M |
| Einhorn | 2026-06-30 | 2,246,180 | $59.9M |
| Soros | 2026-06-30 | 1,488,690 | $39.7M |

6 tracked managers in all.

## About

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 Direc…

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Source: https://sweetvaluelab.com/stocks/wbd (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.