Warner Bros. Discovery Inc (WBD)

Valuation as at 2026-10-17 · see also the S&P 500 Most Undervalued screen

About Warner Bros. Discovery Inc

Warner Bros. Discovery, Inc. operates as a media and entertainment company worldwide.

Source: Yahoo Finance company profile · factual description, not KashVector commentary

Warner Bros. Discovery Inc WBD

Communication Services · Entertainment

Price
$30.95
Market Cap
$77.60B
Free Cash Flow
$16.17B
Beta
1.54
P/E (TTM)
N/A
52-Week Range
$18.00–$30.99

Warner Bros. Discovery Inc's price & financial trends

Each card is labelled with its own reporting period — quarterly where Yahoo provides it for this market, annual otherwise.

Data as at 2026-10-17

Earnings per share (diluted) Per quarter

$0.06 +133% vs Q1 '25
-$0.18$0.63-$0.06-$1.17$0.06Q1 '25Q2 '25Q3 '25Q1 '26Q2 '26

Free cash flow Per quarter

$0.57B -19% vs Q2 '25
$0.70B$0.70B$1.38B-$0.48B$0.57BQ2 '25Q3 '25Q4 '25Q1 '26Q2 '26

Dividend per share

No dividend history available.

Value investing scale · Buffett · Dalio · Graham

Poor Fit
2 / 20 combined score

3 criteria had no data

See the full Buffett, Dalio & Graham breakdown for WBD →

Solvency Check

Altman Z1.00 · Distress
Piotroski F7/9 · Improving
▾ Solvency Check details

Altman Z-Score combines 5 ratios into one weighted number — Z = 1.2·X1 + 1.4·X2 + 3.3·X3 + 0.6·X4 + 1.0·X5 — then bands the result: Safe Zone above 2.99, Grey Zone 1.81–2.99, Distress Zone below 1.81. Piotroski F-Score checks 9 yes/no criteria against the prior fiscal year — profitability, leverage & liquidity, and operating efficiency — 1 point each, out of 9. Both are a measurement of the underlying numbers, not a recommendation.

Altman Z-Score — inputs

X1 · Working Capital / Total Assets0.01
X2 · Retained Earnings / Total Assets-0.12
X3 · EBIT / Total Assets0.01
X4 · Market Value of Equity / Total Liabilities1.23
X5 · Sales / Total Assets0.37

Piotroski F-Score — 9 criteria

Positive return on assets0.7%
Positive operating cash flow4,319,000,000
Return on assets improved year over year0.7% vs -10.8%
Operating cash flow exceeds net income4,319,000,000 vs 727,000,000
Leverage decreased year over year32.5% vs 37.8%
Current ratio improved year over year1.06x vs 0.89x
No new share dilution2,480,000,000 vs 2,454,000,000
Gross margin improved year over year44.0% vs 41.6%
Asset turnover improved year over year0.37x vs 0.38x

Intrinsic value estimate · 5-year forecast

BEAR
$44.32
vs current $30.95
+43.2% ✅ Undervalued
BASE
$52.01
vs current $30.95
+68.0% ✅ Undervalued
BULL
$61.63
vs current $30.95
+99.1% ✅ Undervalued

Assumptions used in this valuation

Every input below is either fetched live from Yahoo Finance or a documented default — nothing is hidden.

Starting free cash flow
$16.17B
Reported free cash flow (Yahoo)
Risk-free rate
4.88% ● LIVE
Live 10-yr govt bond
Beta
1.54
Direct from Yahoo
Equity risk premium
4.42%
Market-specific seed
Cost of debt
15.88%
Synthetic rating C, ICR 0.6x
Tax rate
25.00%
Estimated default
Capital structure
E 71% / D 29%
Market cap vs total debt
Projection horizon
5 years
+ terminal value beyond
BearBaseBull
5-yr FCF growth-3.6%-2.4%-1.2%
Terminal growth2.5%2.5%2.5%
WACC (discount rate)12.75%11.75%10.75%

Cost of Equity = Risk-free rate + Beta × Equity Risk Premium = 4.88% + 1.54 × 4.42% = 11.68% · WACC = weighted by 71%/29% capital structure

These numbers come from running Warner Bros. Discovery Inc's cash flows through the mechanical DCF formula and assumptions above — not from any view on the news, management, or WBD's competitive position. What is DCF?

Want to test your own growth or discount-rate assumptions?Open the full interactive calculator, pre-filled with WBD →

Not financial advice. DCF valuations are highly sensitive to assumptions — small changes in growth rate or discount rate produce large swings in output. This is a mechanical calculation, not a recommendation to buy, hold, or sell.

About this valuation

Computed on 2026-10-17 from Yahoo Finance data, using the same engine as the DCF calculator and the S&P 500 Most Undervalued screen. Every figure above is a point-in-time snapshot of that date — change any assumption yourself in the interactive tool for a live one.

Frequently asked questions

Is Warner Bros. Discovery Inc (WBD) undervalued?

The Base-case DCF estimates intrinsic value at $52.01 vs a price of $30.95 on 2026-10-17 — a +68.0% margin, so the Base case reads undervalued. This is a mechanical output, not advice.