Warner Bros. Discovery, Inc.

NasdaqGS:WBD Stock Report

Market Cap: US$46.7b

Warner Bros. Discovery Valuation

Is WBD undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings 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.

Discounted Cash Flow
Simply Wall St
US$19.26
Fair Value
2.0% undervalued intrinsic discount
21
Number of Analysts

Below Fair Value: WBD ($18.87) is trading below our estimate of fair value ($19.26)

Significantly Below Fair Value: WBD is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for WBD?

Key metric: As WBD is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for WBD. This is calculated by dividing WBD's market cap by their current earnings.
What is WBD's PE Ratio?
PE Ratio60.5x
EarningsUS$772.00m
Market CapUS$46.72b

Price to Earnings Ratio vs Peers

How does WBD's PE Ratio compare to its peers?

The above table shows the PE ratio for WBD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average67.7x
LYV Live Nation Entertainment
73.6x10.70%US$40.3b
TKO TKO Group Holdings
78.8x33.66%US$40.1b
TME Tencent Music Entertainment Group
27.5x8.38%US$39.6b
FWON.K Formula One Group
91.1x18.59%US$24.6b
WBD Warner Bros. Discovery
60.5x-74.06%US$46.7b

Price-To-Earnings vs Peers: WBD is good value based on its Price-To-Earnings Ratio (60.5x) compared to the peer average (67.7x).

Price to Earnings Ratio vs Industry

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

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
SOHU Sohu.com
3.9x-133.28%US$479.84m
DDI DoubleDown Interactive
4.3x6.26%US$459.36m
RDBX Redbox Entertainment
1.2x-121.78%US$76.65m
ABQQ AB International Group
1.8xn/aUS$1.61m
No more companies available in this PE range
WBD 60.5xIndustry Avg. 35.6xNo. of Companies6PE020406080100+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: WBD is expensive based on its Price-To-Earnings Ratio (60.5x) compared to the US Entertainment industry average (35.6x).

Price to Earnings Ratio vs Fair Ratio

What is WBD's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

WBD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio60.5x
Fair PE Ratio6.5x

Price-To-Earnings vs Fair Ratio: WBD is expensive based on its Price-To-Earnings Ratio (60.5x) compared to the estimated Fair Price-To-Earnings Ratio (6.5x).

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$19.48
US$14.90
-23.52%
22.30%US$24.00US$10.00n/a21
Sep ’26US$11.64
US$14.69
+26.17%
22.43%US$24.00US$10.00n/a21
Aug ’26US$12.87
US$14.53
+12.91%
25.73%US$24.00US$10.00n/a21
Jul ’26US$10.94
US$14.01
+28.05%
28.91%US$24.00US$9.00n/a22
Jun ’26US$9.97
US$13.61
+36.49%
28.76%US$24.00US$9.00n/a25
May ’26US$8.43
US$13.27
+57.46%
27.09%US$24.00US$7.00n/a24
Apr ’26US$10.21
US$13.57
+32.87%
22.29%US$22.00US$9.00n/a24
Mar ’26US$11.46
US$13.26
+15.73%
23.48%US$22.00US$9.00n/a25
Feb ’26US$10.44
US$12.70
+21.62%
26.34%US$22.00US$8.19n/a25
Jan ’26US$10.57
US$12.62
+19.36%
26.71%US$22.00US$8.19n/a25
Dec ’25US$10.48
US$11.79
+12.47%
27.53%US$22.00US$8.19n/a25
Nov ’25US$8.23
US$10.56
+28.27%
34.53%US$22.00US$6.00n/a27
Oct ’25US$8.16
US$10.60
+29.90%
34.81%US$22.00US$6.00n/a27
Sep ’25US$7.84
US$10.58
+34.96%
35.03%US$22.00US$6.00US$11.6427
Aug ’25US$8.38
US$11.64
+38.94%
35.46%US$24.00US$7.00US$12.8727
Jul ’25US$7.10
US$12.16
+71.29%
33.45%US$24.00US$7.00US$10.9427
Jun ’25US$8.24
US$12.48
+51.40%
33.02%US$24.00US$7.00US$9.9726
May ’25US$7.62
US$13.35
+75.18%
30.17%US$24.00US$7.00US$8.4326
Apr ’25US$8.79
US$13.72
+56.12%
27.68%US$24.00US$8.50US$10.2125
Mar ’25US$8.67
US$13.80
+59.12%
29.18%US$24.00US$7.00US$11.4624
Feb ’25US$10.46
US$15.34
+46.63%
26.71%US$24.00US$9.00US$10.4424
Jan ’25US$11.38
US$16.64
+46.25%
25.43%US$25.00US$9.00US$10.5723
Dec ’24US$11.33
US$16.43
+44.98%
25.46%US$25.00US$9.00US$10.4823
Nov ’24US$10.08
US$18.47
+83.25%
22.02%US$26.00US$10.00US$8.2325
Oct ’24US$10.86
US$19.54
+79.96%
26.01%US$33.00US$10.00US$8.1623
Sep ’24US$11.56
US$20.11
+73.95%
28.25%US$33.00US$10.00US$7.8423
AnalystConsensusTarget
Consensus Narrative from 21 Analysts
US$14.90
Fair Value
26.6% overvalued intrinsic discount
21
Number of Analysts

Analyst Forecast: Target price is lower than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/09/15 18:39
End of Day Share Price 2025/09/12 00:00
Earnings2025/06/30
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Warner Bros. Discovery, Inc. is covered by 66 analysts. 23 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Pierre-Marie D'OrnanoArete Research Services LLP
Andrew Charles BealeArete Research Services LLP
Joseph BonnerArgus Research Company