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Warner Bros. Discovery Inc Ordinary Shares - Class A WBD

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Stock XNAS Rating as of
$8.31 +0.32 (4.01%)
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As of Delayed Price Closed
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Company Report

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Warner Bros. Discovery: The NBA Finalizes Its Next TV Deal; Amount Seems High for the Partners

Matthew Dolgin

The National Basketball Association officially announced its next media partners, confirming widely disseminated reports that it had chosen Disney, NBCUniversal, and Amazon. The NBA rejected Warner Bros. Discovery’s attempt to match Amazon’s slice of the deal. Though we're not privy to any details, we’re not yet convinced the NBA has the final word on rejecting Warner’s offer. However, we believe the most likely outcome is that Disney, NBCU, and Amazon will end up with the rights, which will commence in the fall of 2025 and end in 2036.

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Price vs Fair Value

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WBD is trading within a range we consider fairly valued.
Price
$8.31
Fair Value
$28.00
Uncertainty
Very High
1-Star Price
$42.00
5-Star Price
$97.00
Economic Moat
Rknc
Capital Allocation
Mskyxrwk

Bulls Say, Bears Say

Bulls

The entertainment content that Warner owns and can continue to create has value under any business model. Warner’s variety of distribution choices will be an asset in satisfying customers as the industry evolves further.

Bears

Without a broadcast network or football rights, Warner Bros. linear networks aren’t as critical for pay-TV distributors and will face increasing pressure as linear TV subscriptions continue to decline.

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Trading Information

Previous Close Price
$7.99
Day Range
$8.03–8.37
52-Week Range
$6.94–14.76
Bid/Ask
$8.27 / $8.32
Market Cap
$20.36 Bil
Volume/Avg
22.9 Mil / 29.9 Mil

Key Statistics

Price/Earnings (Normalized)
—
Price/Sales
0.50
Dividend Yield (Trailing)
—
Dividend Yield (Forward)
—
Total Yield
—

Company Profile

Warner Bros. Discovery was formed in 2022 through the combination of WarnerMedia and Discovery Communications. It operates in three global business segments: studios, networks, and direct-to-consumer. Warner Bros. Pictures is the crown jewel of the studios business, producing, distributing, and licensing movies and television shows. The networks business consists of basic cable networks, such as CNN, TNT, TBS, Discovery, HGTV, and the Food Network. Direct-to-consumer includes HBO and the firm’s streaming platforms, which have now been consolidated to Max and Discovery+. Much of the DTC content is created within the firm’s other two business segments. Each segment operates with a global reach, with Max available in over 60 countries.
Sector
Communication Services
Industry
Entertainment
Stock Style Box
Mid Value
Total Number of Employees
35,300
Website
https://www.wbd.com

Competitors

Valuation

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Metric
WBD
NFLX
PARA
Price/Earnings (Normalized)
 —39.9410.58
Price/Book Value
 0.4612.260.34
Price/Sales
 0.507.720.24
Price/Cash Flow
 1.0938.310.45
Price/Earnings
WBD
NFLX
PARA

Financial Strength

Metric
WBD
NFLX
PARA
Quick Ratio
 0.550.781.03
Current Ratio
 0.820.951.29
Interest Coverage
 −0.6611.670.37
Quick Ratio
WBD
NFLX
PARA

Profitability

Metric
WBD
NFLX
PARA
Return on Assets (Normalized)
 −1.84%14.72%1.38%
Return on Equity (Normalized)
 −5.08%33.34%3.42%
Return on Invested Capital (Normalized)
 −0.61%20.97%3.19%
Return on Assets
WBD
NFLX
PARA
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