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STOCK COMPARISON

Netflix vs Warner Bros Discovery: Fair Value & Quality

Both stocks run through our valuation models. Here is how Netflix (NFLX) and Warner Bros Discovery (WBD) compare, as of Sep 25, 2026.

As of Sep 25, 2026, Fair Value Calculator sees Netflix as the more attractively valued of the two: Netflix trades at $71.72 versus a fair value of $78.89 (+10%), while Warner Bros Discovery trades at $30.84 versus $13.47 (-56%).
Netflix
NFLX · USD · Communication Services
+10%
upside to fair value
fairly valued
Price$71.72
Fair Value$78.89
Quality87/100
Warner Bros Discovery
WBD · USD · Communication Services
-56%
upside to fair value
overvalued
Price$30.84
Fair Value$13.47
Quality40/100
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Head-to-head numbers

Green is the better side of a row, red the weaker one (for valuation multiples: lower = cheaper). Grey rows are for reference only and are not scored.

betterweakerfor reference, not scored

NetflixWarner Bros Discovery
Valuation
22.8×P/E (TTM)n/a
n/aMedian P/E at FY-end (6 FY, ex one-offs where documented)16.2×
6.32×P/S (TTM)2.10×
11.48× · book value is mostly goodwillP/B2.17× · book value is mostly goodwill
21.1×EV/EBITDA14.0×
1.23×PEG216.92×
+10.0%Fair value upside−56.3%
Profitability
33%Operating margin9%
1.61×EBIT margin trend (5Y)0.15×
50%Return on equity-5%
16%Return on assets1%
Growth
13%Revenue growth (YoY)-1%
12.6%Avg. growth/yr (3Y)3.3%
12.6%Avg. growth/yr (5Y)28.4%
+28.3%Value creation/yr−30.7%
Balance & size
17.2×Interest coverage (EBIT/interest)0.6×
0.51×Debt / equity0.90×
$306BMarket cap$78B
healthyGrowth qualitymixed
Warner Bros Discovery, median P/E at fiscal year-end, 6 fiscal years (2016 to 2025), reported earnings, FY2025 ex one-offs: 16.2.

Netflix leads: 10 to 3 metric wins.

n/a = not meaningfully computable, for example with negative equity.

Quality in detail

The quality score, broken down into the same factor families as on the stock page, 0 to 100 per family.

Netflixof which business quality 82 · market factors 21 Warner Bros Discoveryof which business quality 40 · market factors 71
ProfitabilityMargins and returns on capital today
85
20
Quality GrowthAre margins and returns improving?
81
31
CashflowEarnings quality: real cash, not paper profit
73
63
Fin. StrengthBalance sheet, leverage, solvency risk
79
24
InvestmentDisciplined investing over empire-building
78
98
Low VolatilityCalm price path (market factor)
37
46
MomentumPrice trend over the last 3–12 months (market factor)
21
71
52W MomentumDistance to the 52-week high (market factor)
4
99
Net IssuanceShare count: buybacks or dilution?
97
24

What the models say

How far the median fair value (base case) per model family sits from the current price, in percent. The amount in the currency of the trading venue is shown underneath.

above the price, more than 15% above close to the price, 85% to 115% of the price below the price, more than 15% below

Model familyNetflixPrice $71.72Warner Bros DiscoveryPrice $30.84
DCF Models+35%above the price$96.90-19%below the price$24.89
Earnings-Based-14%close to the price$61.63-67%below the price$10.15
Multiples-39%below the price$44.06-82%below the price$5.66
Asset-Based-94%below the price$4.28-69%below the price$9.60
Growth DCF-5%close to the price$68.07-21%below the price$24.39
Economic Profit-42%below the price$41.36-69%below the price$9.57
Growth Earnings+15%close to the price$82.13-56%below the price$13.47
Minimum-94%below the price$4.28-82%below the price$5.66
Maximum+35%above the price$96.90-19%below the price$24.89
Median-14%close to the price$61.63-67%below the price$10.15
Geometric mean-40%below the price$42.74-60%below the price$12.32

Minimum, maximum, median and geometric mean refer to the family values in this table. Geometric because deviations are ratios: half the price and twice the price average to 100%, not 125%.

Netflix: 15 of 24 models see the stock below the current price.

Warner Bros Discovery: 15 of 20 models see the stock below the current price.

Scenario ranges

From our cautious bear scenario to the optimistic bull scenario. The white tick is the current price (value above it), the green tick the fair value (value below it): if the price sits left of the fair value, there is room to rise.

Netflix
Price $71.72
Fair Value $78.89
Bear $48.63Bull $140
Warner Bros Discovery
Price $30.84
Fair Value $13.47
Bear $9.62Bull $17.51

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Ranked within their sector

Where each stock sits within its sector peer group. Band = middle 50% of peers, tick = median, dot = this stock.

Netflix · Communication Services

Quality score87 · Top 25%
Fair value upside+10% · above median

Warner Bros Discovery · Communication Services

Quality score40 · bottom 25%
Fair value upside-56% · bottom 25%

Bottom line

As of Sep 25, 2026, Fair Value Calculator sees Netflix as the more attractively valued of the two: Netflix trades at $71.72 versus a fair value of $78.89 (+10%), while Warner Bros Discovery trades at $30.84 versus $13.47 (-56%).

Netflix has the higher quality score (87/100).

Open Netflix live analysis →
Netflix · Warner Bros Discovery

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A model-based valuation snapshot from 26 models. Values change with price and fundamentals; the date shown above applies.