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Warner Bros Discovery Inc
NASDAQ:WBD

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Warner Bros Discovery Inc
NASDAQ:WBD
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Price: 26.82 USD -0.92% Market Closed
Market Cap: $66.5B

EV/GP

5.8
Current
54%
More Expensive
vs 3-y average of 3.7

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
5.8
=
Enterprise Value
$95.8B
/
Gross Profit
$16.4B

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
5.8
=
Enterprise Value
$95.8B
/
Gross Profit
$16.4B

Valuation Scenarios

Warner Bros Discovery Inc is trading above its 3-year average

If EV/GP returns to its 3-Year Average (3.7), the stock would be worth $17.38 (35% downside from current price).

Statistics
Positive Scenarios
1/4
Maximum Downside
-35%
Maximum Upside
+13%
Average Downside
19%
Scenario EV/GP Value Implied Price Upside/Downside
Current Multiple 5.8 $26.82
0%
3-Year Average 3.7 $17.38
-35%
5-Year Average 3.8 $17.79
-34%
Industry Average 4.5 $20.84
-22%
Country Average 6.5 $30.37
+13%

Forward EV/GP
Today’s price vs future gross profit

Not enough data available to calculate forward EV/GP

Peer Comparison

All Multiples
EV/GP
P/E
All Countries
Close
Market Cap EV/GP P/E
US
Warner Bros Discovery Inc
NASDAQ:WBD
66.5B USD 5.8 91.5
US
Netflix Inc
NASDAQ:NFLX
384.7B USD 16.8 28.8
US
Walt Disney Co
NYSE:DIS
184.5B USD 6 15.1
LU
Spotify Technology SA
NYSE:SPOT
102.1B USD 14.2 39.1
NL
Universal Music Group NV
AEX:UMG
36.3B EUR 7.2 23.3
US
Live Nation Entertainment Inc
NYSE:LYV
36.8B USD 5.2 -668.1
US
TKO Group Holdings Inc
NYSE:TKO
36.1B USD 14.9 157.8
FR
Bollore SE
PAR:BOL
14.8B EUR 50.5 42.6
US
Roku Inc
NASDAQ:ROKU
16.9B USD 7 191.8
US
Warner Music Group Corp
NASDAQ:WMG
15B USD 5.9 50
CN
Tencent Music Entertainment Group
NYSE:TME
14.4B USD 5.4 8.9

Market Distribution

In line with most companies in the United States of America
Percentile
43rd
Based on 9 428 companies
43rd percentile
5.8
Low
0 — 4.2
Typical Range
4.2 — 10.6
High
10.6 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 4.2
Median 6.5
70th Percentile 10.6
Max 1 764 211.7

Warner Bros Discovery Inc
Glance View

Warner Bros Discovery Inc. emerges as a dynamic powerhouse in the media and entertainment industry, representing the fusion of two iconic names: WarnerMedia and Discovery, Inc. This corporate merger, consummated in 2022, was orchestrated to blend WarnerMedia's strength in film and television production with Discovery's expertise in non-fiction and international content. The combined entity leverages an extensive portfolio that includes beloved brands such as HBO, Warner Bros., CNN, and the Discovery Channel. This diverse range of assets positions Warner Bros Discovery to thrive in an ever-evolving media landscape where streaming services, traditional television, and cinematic experiences blend seamlessly. The strategic alignment allows Warner Bros Discovery to create, distribute, and monetize content across multiple platforms, catering to global audiences. In monetizing its vast array of content, Warner Bros Discovery employs a multifaceted approach. The company generates revenue through various streams, such as direct-to-consumer subscriptions, advertising, content licensing, and theatrical distribution. Platforms like HBO Max and Discovery+ serve as integral components of its digital strategy, where subscribers pay to access a vast library of films, series, documentaries, and original programming. In parallel, its traditional cable networks and production units capitalize on advertising revenue and syndication deals. The theatrical release of films provides another significant income stream, bolstered by a storied history of blockbuster hits. Through these revenue channels, Warner Bros Discovery not only captures diverse market segments but also adapts to shifts in consumer behavior, ensuring its place at the forefront of the entertainment industry.

WBD Intrinsic Value
27.14 USD
Undervaluation 1%
Intrinsic Value
Price $26.82
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