(WBD) Warner Bros Discovery - Overview
Stock: Films, Television, Streaming, Gaming, Networks
EPS (Earnings per Share)
Revenue
| Risk 5d forecast | |
|---|---|
| Volatility | 50.1% |
| Relative Tail Risk | -11.1% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 1.86 |
| Alpha | 144.51 |
| Character TTM | |
|---|---|
| Beta | 1.723 |
| Beta Downside | 2.278 |
| Drawdowns 3y | |
|---|---|
| Max DD | 57.90% |
| CAGR/Max DD | 0.43 |
Description: WBD Warner Bros Discovery January 28, 2026
Warner Bros. Discovery (WBD) is a global media and entertainment conglomerate organized into three operating segments: Studios (film production, TV licensing, home-entertainment and gaming), Network (domestic and international broadcast and cable channels) and Direct-to-Consumer (premium pay-TV and streaming services such as Max, discovery+ and HBO Max). Its portfolio spans marquee franchises-including Harry Potter, DC, Game of Thrones, Friends, and Looney Tunes-as well as a broad suite of linear networks (CNN, HGTV, TNT Sports, etc.) and interactive gaming assets.
In the most recent quarter (Q4 2025), WBD reported revenue of **$7.1 billion**, a 3.2 % year-over-year increase driven largely by a **5 % rise in advertising revenue** as ad spend rebounds in the U.S. market. The combined subscriber base for Max and discovery+ reached **≈ 97 million**, up 2 % YoY, while average revenue per user (ARPU) held steady at **$9.8**. The company’s net debt remains elevated at **$30 billion**, and free cash flow was **-$1.2 billion**, reflecting continued investment in content and debt service.
Sector-wide, the streaming landscape is consolidating, with macro-economic pressures compressing advertising budgets and intensifying competition for subscriber growth. WBD’s ability to leverage its deep content library and cross-platform synergies will be a key determinant of margin expansion in the coming years. *For a deeper quantitative analysis, the ValueRay model provides a granular look at WBD’s financial outlook.*
Piotroski VR‑10 (Strict, 0-10) 3.0
| Net Income: 485.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA -0.88 > 1.0 |
| NWC/Revenue: 2.37% < 20% (prev -8.06%; Δ 10.43% < -1%) |
| CFO/TA 0.05 > 3% & CFO 5.23b > Net Income 485.0m |
| Net Debt (29.76b) to EBITDA (19.55b): 1.52 < 3 |
| Current Ratio: 1.07 > 1.5 & < 3 |
| Outstanding Shares: last quarter (2.48b) vs 12m ago 0.36% < -2% |
| Gross Margin: 44.04% > 18% (prev 0.41%; Δ 4363 % > 0.5%) |
| Asset Turnover: 36.61% > 50% (prev 37.22%; Δ -0.61% > 0%) |
| Interest Coverage Ratio: 1.85 > 6 (EBITDA TTM 19.55b / Interest Expense TTM 1.99b) |
Altman Z'' -0.26
| A: 0.01 (Total Current Assets 13.06b - Total Current Liabilities 12.16b) / Total Assets 100.52b |
| B: -0.11 (Retained Earnings -11.26b / Total Assets 100.52b) |
| C: 0.04 (EBIT TTM 3.68b / Avg Total Assets 103.43b) |
| D: -0.18 (Book Value of Equity -11.66b / Total Liabilities 63.21b) |
| Altman-Z'' Score: -0.26 = B |
Beneish M -3.21
| DSRI: 0.97 (Receivables 5.13b/5.53b, Revenue 37.86b/39.58b) |
| GMI: 0.93 (GM 44.04% / 41.03%) |
| AQI: 0.98 (AQ_t 0.81 / AQ_t-1 0.82) |
| SGI: 0.96 (Revenue 37.86b / 39.58b) |
| TATA: -0.05 (NI 485.0m - CFO 5.23b) / TA 100.52b) |
| Beneish M-Score: -3.21 (Cap -4..+1) = AA |
What is the price of WBD shares?
Over the past week, the price has changed by -0.65%, over one month by -3.90%, over three months by +22.03% and over the past year by +168.24%.
Is WBD a buy, sell or hold?
- StrongBuy: 11
- Buy: 3
- Hold: 12
- Sell: 0
- StrongSell: 1
What are the forecasts/targets for the WBD price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 28.5 | 4% |
| Analysts Target Price | 28.5 | 4% |
| ValueRay Target Price | 29.1 | 6.4% |
WBD Fundamental Data Overview February 02, 2026
P/E Forward = 2500.0
P/S = 1.8035
P/B = 1.3214
P/EG = 2.7859
Revenue TTM = 37.86b USD
EBIT TTM = 3.68b USD
EBITDA TTM = 19.55b USD
Long Term Debt = 33.38b USD (from longTermDebt, last quarter)
Short Term Debt = 364.0m USD (from shortTermDebt, last quarter)
Debt = 33.75b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 29.76b USD (from netDebt column, last quarter)
Enterprise Value = 97.74b USD (68.29b + Debt 33.75b - CCE 4.29b)
Interest Coverage Ratio = 1.85 (Ebit TTM 3.68b / Interest Expense TTM 1.99b)
EV/FCF = 23.64x (Enterprise Value 97.74b / FCF TTM 4.13b)
FCF Yield = 4.23% (FCF TTM 4.13b / Enterprise Value 97.74b)
FCF Margin = 10.92% (FCF TTM 4.13b / Revenue TTM 37.86b)
Net Margin = 1.28% (Net Income TTM 485.0m / Revenue TTM 37.86b)
Gross Margin = 44.04% ((Revenue TTM 37.86b - Cost of Revenue TTM 21.19b) / Revenue TTM)
Gross Margin QoQ = 49.54% (prev 39.19%)
Tobins Q-Ratio = 0.97 (Enterprise Value 97.74b / Total Assets 100.52b)
Interest Expense / Debt = 1.69% (Interest Expense 570.0m / Debt 33.75b)
Taxrate = 21.0% (US default 21%)
NOPAT = 2.91b (EBIT 3.68b * (1 - 21.00%))
Current Ratio = 1.07 (Total Current Assets 13.06b / Total Current Liabilities 12.16b)
Debt / Equity = 0.94 (Debt 33.75b / totalStockholderEquity, last quarter 36.02b)
Debt / EBITDA = 1.52 (Net Debt 29.76b / EBITDA 19.55b)
Debt / FCF = 7.20 (Net Debt 29.76b / FCF TTM 4.13b)
Total Stockholder Equity = 34.98b (last 4 quarters mean from totalStockholderEquity)
RoA = 0.47% (Net Income 485.0m / Total Assets 100.52b)
RoE = 1.39% (Net Income TTM 485.0m / Total Stockholder Equity 34.98b)
RoCE = 5.39% (EBIT 3.68b / Capital Employed (Equity 34.98b + L.T.Debt 33.38b))
RoIC = 4.08% (NOPAT 2.91b / Invested Capital 71.26b)
WACC = 8.65% (E(68.29b)/V(102.03b) * Re(12.26%) + D(33.75b)/V(102.03b) * Rd(1.69%) * (1-Tc(0.21)))
Discount Rate = 12.26% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 0.88%
[DCF Debug] Terminal Value 77.16% ; FCFF base≈4.60b ; Y1≈5.05b ; Y5≈6.42b
Fair Price DCF = 27.70 (EV 98.44b - Net Debt 29.76b = Equity 68.68b / Shares 2.48b; r=8.65% [WACC]; 5y FCF grow 11.01% → 2.90% )
EPS Correlation: 7.09 | EPS CAGR: -13.25% | SUE: 0.11 | # QB: 0
Revenue Correlation: 50.48 | Revenue CAGR: 32.07% | SUE: -0.72 | # QB: 0
EPS next Quarter (2026-03-31): EPS=-0.11 | Chg30d=-0.010 | Revisions Net=+0 | Analysts=6
EPS next Year (2026-12-31): EPS=-0.21 | Chg30d=+0.013 | Revisions Net=+1 | Growth EPS=-157.0% | Growth Revenue=-0.7%