Warner Bros. Discovery, Inc (WBD) Fair Value & Analysis
Communication Services · US · Market cap $67.1B
Warner Bros. Discovery, Inc
WBD · US
Fair value as of: Jul 20, 2026
From 23 valuation models · updated 18 days ago
Share price +1.1% over the past month.
Below-average quality, and screening another 65% overvalued on our models.
What matters now
- The price sits above even our optimistic bull case ($9.13). The favourable scenario is already priced in.
- Solid but not exceptional quality (45/100) and above fair value, neither a clear bargain nor a standout compounder.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 20, 2026.
How to read this chart
60‑month range $6.71 – $37.56 · fair‑value band $7.00 – $9.13 · the $26.40 price screens above the $9.13 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 20, 2026.
Analysis
Warner Bros. Discovery, Inc (WBD) currently trades at $26.40, while our model-based Fair Value estimate is $9.13, implying the stock looks roughly 65.4% overvalued today. We read business quality at 45/100 (below-average quality), in the Communication Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).
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 Jul 20, 2026
Our scenario range runs from $7.00 (bear case) to $9.13 (bull case); at $26.40, 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 12% below its 52-week high and 190% above its 52-week low, currently above its 200-day average. For context, the median of 10 Communication Services peers we cover trades at -44% fair-value upside, at -65%, 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 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.
All 23 models by family
Widest divergence: Growth Earnings ($13.08) versus Dividend Discount ($1.93). Highest evidence: Growth DCF (80).
Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Jul 20, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 40 · Market factors (momentum, volatility) 59
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.
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 65% overvalued. Compare with Netflix, Inc →
Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Warner Bros. Discovery Q2 2026 Earnings Preview
- Paramount Skydance (PSKY) Gets EU Clearance For Warner Bros. Discovery Acquisition
- Paramount CEO says politics fueling Warner Bros. merger battle
- Conectiv Expands Packaged Media Platform Through Strategic Partnership with Universal and Warner Bros.
Peer Group
Entertainment · 268 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
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.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more Entertainment stocks, each showing price versus our Fair Value estimate (as of Jul 20, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Netflix, Inc ZNFL | C$6.77 | C$2.96 | -56% |
| The Walt Disney Company DIS | $96.30 | $89.55 | -7% |
| Live Nation Entertainment, Inc LYV | $178.44 | $46.89 | -74% |
| Universal Music Group UMG | €18.91 | €14.78 | -22% |
| TKO Group TKO | $184.40 | $22.16 | -88% |
| Empresas Cablevisión, S.A. CABLECPO | 55.00 MXN | 60.49 MXN | +10% |
| Beijing Enlight Media Co 300251 | ¥11.77 | ¥10.97 | -7% |
| Oriental Pearl Group 600637 | ¥7.86 | ¥4.38 | -44% |
| PT MNC Digital Entertainment Tbk, MSIN | 456.00 IDR | 221.09 IDR | -52% |
| Prime Focus Limited PFOCUS | ₹235.99 | ₹61.98 | -74% |
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How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.
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