Warner Bros. Discovery, Inc. WBD
Composite 38/100; the shares have moved about 16% annualised. Names that move more contribute more risk for the same amount invested, and our composite reflects how strong the evidence for this one is right now.
Growth ranks 8/100 — a strong mark against it.
Valuation ranks 75/100 — a moderate point in its favour. Momentum ranks 64/100 — a moderate point in its favour.
Growth ranks 8/100 — a strong mark against it. Balance-sheet strength ranks 19/100 — a strong mark against it. Quality ranks 23/100 — a strong mark against it.
What the company does Warner Bros. Discovery (WBD) operates as a global media and entertainment company across three segments: Streaming (HBO Max, discovery+), Studios (film/TV production and licensing), and Global Linear Networks (cable channels and international media). Its business spans content creation, distribution, and streaming, with recent focus on integrating assets post-merger discussions.
Key financials WBD’s profitability metrics are weak: ROE -8.8%, ROA 1.7%, and ROCE -1.9%. Margins are under pressure with gross at 47.8%, operating at 5.1%, and net at -8.8%. Revenue declined -11.2% while EPS fell -90.6%, reflecting restructuring and content investment costs. Leverage is high (Debt/Equity 0.94, Net debt/EBITDA 3.67), and liquidity is tight (Current ratio 0.78).
Stock health Momentum is mixed: +3.21% over 3 months but -0.43% over 6 months, with a 12-month surge of 132.28%. The stock is -6.70% below its 52-week high and has an RSI(14) of 68.50, indicating overbought conditions. The Sideravia Score ranks WBD in the 35.9th percentile overall, with Valuation (64.2) and Momentum (64.8) as relative strengths.
Price vs fair value WBD trades at a **discount of 6.50%** to the analyst mean target of 29.82. - Director selling amid merger uncertainty (Motley Fool) - Analyst questions on Q2 earnings call highlight execution risks (StockStory) - Third Point’s new position signals activist interest (Barrons.com) - Regulatory progress on Paramount merger boosts sentiment (Investing.com) - Simplistic Wall St. flags a 53% fair-value gap (Simply Wall St.) - Traders price in higher odds of a Paramount-WBD deal (Bloomberg)
Looking forward WBD’s valuation hinges on execution in streaming integration and potential merger synergies. Near-term risks include content costs, debt load, and regulatory outcomes. Analysts’ mean target implies ~7% upside, but execution and macro trends (e.g., ad spend) remain critical. Monitor margin recovery and deal progress for catalysts.
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Data as of 2026-09-05, compiled from third-party sources; errors and delays are possible and figures are not warranted. Investing puts your capital at risk; past performance does not predict future results. We publish our full track record, including the calls that lost, and our conflicts of interest.