WBD
Warner Bros. Discovery
$26.75
▲ 1.3%Updated Aug 7, 11:30 AM ET
WBD at a glance — five pillars scored 0–100 from real filed financials.
Overall: Weak · 23/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▲ Up 147.9% over the last 12 months
Market Cap
$66.69B
P/E
92.25x
Forward P/E (est.)
—
ROE
-4.9%
Revenue Growth
-3.0%
EPS Growth
—
Profit Margin
-4.7%
FCF Yield
25.8%
Debt / Equity
0.91x
ROIC
1.0%
Interest Coverage
0.33x
Current Ratio
0.73x
Dividend Yield
—
Implied Growth (rev. DCF)
4.2%
Rating Score
23/100
Warner Bros. Discovery (WBD) is a large-cap company in the Broadcasting industry, part of the Communication Services sector of the S&P 500, with a market value around $66.69B.
In its latest reported year it generated about $37.30B in revenue and $727.00M in net profit.
Our model rates WBD Weak (23/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Evidence of durable competitive advantage in the filed financials (10 years of history).
The numbers don't show a durable competitive advantage — margins, growth, or returns on capital have been unstable or thin. Great returns are still possible; they just aren't protected.
-9.1% average over the last 3 years
±18.8 pts around 7.8% across 10 years
grew in 6 of the last 9 year-over-year periods
positive in 10 of 10 years
1.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what WBD's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. WBD trades near $26.75, around its 50-day average ($26.94) and 200-day average ($25.73). Price tangled in its moving averages means there is no clear trend — the stock is ranging.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 45 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. WBD's is $0.47 (~1.8% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month WBD found buyers near $25.91 (support) and sellers near $27.30 (resistance); its 52-week range is $10.76–$30.00. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.6× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
32.3%
Revenue moved from $6.50B in 2016 to $37.30B in 2025, a 21.4% compound annual growth rate. The most recent year declined 3.0% year over year. Shrinking revenue is worth a closer look — is it cyclical or structural?
Gross Margin
45.5%
Operating Margin
2.0%
Net Margin
1.9%
ROE
-4.9%
Warner Bros. Discovery keeps about -4.7% of each sales dollar as net profit, with a 45.5% gross margin and 2.0% operating margin. Return on equity is -4.9% and return on invested capital about 1.0%. The company is currently unprofitable on a net basis.
Total Debt
$32.47B
Net Debt
$29.20B
Net Debt / EBITDA
39.57x
Debt / Equity
0.91x
Leverage: debt-to-equity is 0.9x, and operating profit covers interest about 0.3x, with a current ratio of 0.7x. That is a moderate, manageable debt load for most businesses. It carries roughly $32.47B of total debt against $3.26B of cash.
Operating CF
$4.32B
Free Cash Flow
$3.09B
FCF Margin
8.3%
In the latest year Warner Bros. Discovery produced about $4.32B of operating cash flow and $3.09B of free cash flow after capital spending. That is a free-cash-flow yield of about 25.8% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
P/E
92.25x
P/S
1.79x
P/B
2x
EV / EBITDA
—
WBD trades at 92.3x trailing earnings, 1.8x sales, and 2.0x book value. Reverse-engineering today's price implies the market expects roughly 4.2% long-term free-cash-flow growth. That is a rich multiple that prices in a lot of future growth.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$14.22
Current price
$26.75
Starting FCF (latest 10-K)
$3.09B
Growth, years 1–5
-3.0%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where WBD sits versus its Communication Services sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 44 Communication Services companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How WBD stacks up against its Communication Services peers — valuation, profitability, and growth versus the sector median.
In the Communication Services sector (95 S&P 500 companies), WBD ranks #41 of 95 by our overall rating. It trades at a premium versus the sector on earnings (92.3x P/E vs. 17.1x median) with a lower return on equity (-4.9% vs. 14.9%) and slower revenue growth (-3.0% vs. 5.3%).
P/E vs sector
92.3x
median 17.1x
ROE vs sector
-4.9%
median 14.9%
Growth vs sector
-3.0%
median 5.3%
Sector rank
#41
of 95 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Communication Services companies by sub-industry and size. Sector median is across all 95 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $26.75 today · expected CAGR 1% – 12%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $38.41B | $39.57B | $40.75B | $41.98B | $43.24B |
| Net income | $1.15B | $1.19B | $1.22B | $1.26B | $1.30B |
| EPS | $0.46 | $0.48 | $0.49 | $0.51 | $0.52 |
| Share price (low) | $25.42 | $26.19 | $26.97 | $27.78 | $28.62 |
| Share price (high) | $42.53 | $43.80 | $45.12 | $46.47 | $47.87 |
| CAGR (low–high) | -5% / 59% | -1% / 28% | 0% / 19% | 1% / 15% | 1% / 12% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for WBD:
- Healthy free-cash-flow yield (~25.8%) funds buybacks and dividends.
- As an established S&P 500 member in Communication Services, it brings scale and a long operating history.
The case against WBD:
- Revenue growth is slow/negative (-3.0%), limiting the upside engine.
- Thin net margins (-4.7%) leave little room for error.
- Interest coverage is thin (0.3x), so debt costs bite.
- A rich 92.3x earnings multiple prices in a lot of growth.
- Our model's overall read is Weak (23/100).
Valuation risk — at 92.3x earnings, disappointing results could compress the multiple.
Growth risk — sluggish revenue (-3.0%) leaves little margin for execution missteps.
Margin risk — thin profitability (-4.7%) is vulnerable to cost or pricing pressure.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen weakly: Warner Bros. Discovery is a large-cap communication services business with shrinking revenue, with modest profitability, and a heavier debt load to watch. It trades at 92.3x earnings, which our model scores Weak (23/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 25 Wall Street analysts covering WBD recommend (August 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Latest SEC Filings
WBD's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
WBD — frequently asked questions
Is WBD a good stock to buy?
We don't give buy or sell advice. Our model rates Warner Bros. Discovery Weak (23/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is WBD's rating on The Stocks School?
Warner Bros. Discovery currently scores 23/100 (Weak) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does WBD's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Warner Bros. Discovery's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for WBD calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this WBD analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell WBD. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.