Warner Bros Discovery Inc (WBD) Fair Value & Analysis
Communication Services · US · Market cap $67.1B · ISIN US9344231041
What is Warner Bros Discovery Inc really worth?
Warner Bros Discovery Inc
WBD · US
Below-average quality, and trading another 214% above our fair value of $9.03.
Strengths
Risks
Fair value as of: Aug 13, 2026
From 22 valuation models · updated 22 days ago
Fair value updated Aug 13, 2026, revised from $9.13 to $9.03 (−1.1%) since Jul 20, 2026. Share price +10.0% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- The price sits above even our optimistic bull case ($9.03). The favourable scenario is already priced in.
- Weak quality (39/100) and above fair value at the same time, the margin of safety is missing on both counts.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.
How to read this chart
60‑month range $6.71 – $31.63 · fair‑value band $6.52 – $9.03 · the $28.37 price screens above the $9.03 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.
Analysis
Warner Bros Discovery Inc (WBD) currently trades at $28.37, while our model-based Fair Value estimate is $9.03, implying the stock looks roughly 214.2% overvalued today. The Quality Score stands at 39/100 (below-average quality), in the Communication Services sector. Bull case: the Growth Earnings group reads highest at a median of $13.47 per share, and 3 of the 22 models we run sit above the $28.37 price. Bear case: the Dividend Discount group reads lowest at $1.93, and 19 of the 22 models stay below the price. Evidence for this calculation is medium.
Over the trailing twelve months, Warner Bros Discovery Inc generated revenue of $37.2B at a net margin of −4.7%. Revenue declined 1.0% year over year. It earns a return on equity of −5.0%. Net debt stands at $28.0B. Fundamentals as of Aug 13, 2026
Our scenario range runs from $6.52 (bear case) to $9.03 (bull case); at $28.37, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 5% below its 52-week high and 211% above its 52-week low, currently above its 200-day average. For context, the median of 10 Communication Services peers we cover trades at −45% fair-value upside, at −68%, WBD screens richer than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.
All 22 models by family
Widest divergence: Growth Earnings ($13.47) versus Dividend Discount ($1.93). Highest evidence: Residual Income (74).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 40 · Market factors (momentum, volatility) 63
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
Warner Bros. Discovery, Inc. operates as a media and entertainment company worldwide. It operates through three segments: Streaming, Studios, and Global Linear Networks.
Full company description
Warner Bros. Discovery, Inc. operates as a media and entertainment company worldwide. It operates through three segments: Streaming, Studios, and Global Linear Networks. The Streaming segment offers streaming services, such as HBO Max and discovery+, and premium pay-TV services, including HBO and certain premium sports streaming products for mobile and connected TV devices. The Studios segment is involved in the production and release of feature films for initial exhibition in theaters, production and initial licensing of television programs to third parties and its networks/streaming services. This segment also distributes films and television programs to various third-party and internal television, streaming services, and physical and digital home entertainment markets; related consumer products and themed experience licensing; and publishes, develops, licenses, and distributes content for the interactive space in platforms, including console, handheld, mobile, and PC-based gaming for both internal and third-party game titles. The Global Linear Networks segment provides general and lifestyle entertainment networks, news networks; and hosts international media networks and global sports networks. In addition, the company offers a portfolio of content and products for television, film, streaming, interactive gaming, publishing, themed experiences, and consumer products under the Discovery Channel, HBO Max, CNN, DC Studios, TNT Sports, HBO, Food Network, TLC, TBS, Warner Bros. Motion Picture Group, Warner Bros. Television Group, Warner Bros. Games, Adult Swim, Turner Classic Movies, and other brands. Warner Bros. Discovery, Inc. was incorporated in 2008 and is headquartered in New York, New York.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Warner Bros Discovery Inc reported revenue of $37.3B in FY2025 versus $12.2B in FY2021, a compound +32.3%/yr. Reported net income was $727M in FY2025, compounding −7.8%/yr from FY2021.
WBD screens 214% overvalued. Compare with Netflix, Inc →
Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Newsom Prefers Paramount (PSKY)-Warner Bros (WBD) Settlement “If It’s a Good Deal”
- Paramount Skydance (PSKY) & Warner Bros (WBD): Paramount Wants to Settle With 12 States. It’s Also Demanding They Post a $1.9 Billion Bo
Peer Group
Entertainment · 253 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Entertainment median · lower = cheaper
Strength profile in five axes (Snowflake)
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
VALUE 0: the price sits above our fair-value range.
Insider activity: 40/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Entertainment stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Netflix, Inc NFLX | $81.72 | $49.35 | −40% |
| The Walt Disney Company DIS | $103.50 | $80.62 | −22% |
| Live Nation Entertainment, Inc LYV | $182.02 | $59.97 | −67% |
| Universal Music Group UMG | €14.73 | €14.78 | +0% |
| TKO Group TKO | $189.42 | $47.75 | −75% |
| Formula One Group FWONK | $102.02 | $35.21 | −65% |
| Fox Corporation FOXA | $68.42 | $206.81 | +202% |
| News Corporation NWS | A$46.55 | A$20.41 | −56% |
| Warner Music Group WMG | $24.79 | $12.10 | −51% |
| Bolloré SE BOL | €3.85 | €2.11 | −45% |
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