Warner Bros Discovery Inc (WBD) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Warner Bros Discovery Inc stock (WBD) is currently trading at $27.22. Warner Bros Discovery Inc PE ratio is 94.07. Warner Bros Discovery Inc PS ratio (Price-to-Sales) is 1.81. Analyst consensus price target for WBD is $29.60. WallStSmart rates WBD as Underperform.
- WBD PE ratio analysis and historical PE chart
- WBD PS ratio (Price-to-Sales) history and trend
- WBD intrinsic value — DCF, Graham Number, EPV models
- WBD stock price prediction 2025 2026 2027 2028 2029 2030
- WBD fair value vs current price
- WBD insider transactions and insider buying
- Is WBD undervalued or overvalued?
- Warner Bros Discovery Inc financial analysis — revenue, earnings, cash flow
- WBD Piotroski F-Score and Altman Z-Score
- WBD analyst price target and Smart Rating
Warner Bros Discovery Inc
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WBD Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Warner Bros Discovery Inc (WBD)
WBD trades 106% above its Graham fair value of $13.57, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Warner Bros Discovery Inc (WBD) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, price/sales, price/book. Concerns around peg ratio and return on equity. Fundamentals are solid but monitor weak areas for improvement.
Warner Bros Discovery Inc (WBD) Key Strengths (5)
Earnings per share surging 226.70% year-over-year
73.77% of shares held by major funds and institutions
Large-cap company with substantial market presence
Paying $1.81 for every $1 of annual revenue
Trading at 1.89x book value, attractively priced
Supporting Valuation Data
Warner Bros Discovery Inc (WBD) Areas to Watch (5)
Revenue declining -5.70%, a shrinking business
Very low returns on shareholder equity
Very expensive relative to growth, significant premium
Very thin margins with limited operational efficiency
Very thin margins, barely profitable
Supporting Valuation Data
Warner Bros Discovery Inc (WBD) Detailed Analysis Report
Overall Assessment
This company scores 51/100 in our Smart Analysis, earning a C- grade. Out of 10 metrics analyzed, 5 register as strengths (avg 9.0/10) while 5 fall into concern territory (avg 1.4/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on EPS Growth, Institutional Own., Market Cap. Valuation metrics including Price/Sales (1.81), Price/Book (1.89) suggest the stock is attractively priced. Growth metrics are encouraging with EPS Growth at 226.70%.
The Bear Case
The primary concerns are Revenue Growth, Return on Equity, PEG Ratio. Some valuation metrics including PEG Ratio (216.92) suggest expensive pricing. Growth concerns include Revenue Growth at -5.70%, which may limit upside. Profitability pressure is visible in Return on Equity at 2.08%, Operating Margin at 7.38%, Profit Margin at 1.95%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Revenue Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 2.08% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at -5.70% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. Strengths and concerns are roughly balanced. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (EPS Growth, Institutional Own.) and negatives (Revenue Growth, Return on Equity). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
WBD Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
WBD's Price-to-Sales ratio of 1.81x trades at a deep discount to its historical average of 5.79x (25th percentile). The current valuation is 94% below its historical high of 28.32x set in Oct 2007, and 303% above its historical low of 0.45x in Jun 2024.
WallStSmart Analysis Synopsis
Data-driven financial summary for Warner Bros Discovery Inc (WBD) · COMMUNICATION SERVICES › ENTERTAINMENT
The Big Picture
Warner Bros Discovery Inc faces headwinds with declining revenue, though profitability provides a cushion. Revenue reached 37.3B with 6% decline year-over-year. Profit margins are strong at 195.0%, reflecting pricing power and operational efficiency.
Key Findings
ROE of 208.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Generating 1.4B in free cash flow and 1.8B in operating cash flow. Earnings are translating into actual cash generation.
Revenue contracted 6% YoY. Worth determining whether this is cyclical or structural.
What to Watch Next
Valuation compression risk at a P/E of 94.1x. Any growth miss could trigger a sharp correction.
Volatility is elevated with a beta of 1.68, so expect amplified moves relative to the broader market.
Sector dynamics: monitor ENTERTAINMENT industry trends, competitive moves, and regulatory changes that could impact Warner Bros Discovery Inc.
Bottom Line
Warner Bros Discovery Inc faces challenges with declining revenue. While profitability provides a buffer, the long-term trajectory needs to improve. Watch for management's strategic response and whether the company can stabilize or pivot to new growth drivers.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Warner Bros Discovery Inc(WBD)
NASDAQ
COMMUNICATION SERVICES
ENTERTAINMENT
USA
Warner Bros. The company is headquartered in New York, New York.