Stock analysis · Bull Rankings model

WBD analysis

Warner Bros. Discovery, Inc.Entertainment. Scored on the same transparent model behind the daily rankings.

Streaming & Entertainment
WBD
Warner Bros. Discovery, Inc. · Entertainment
FCF$2.2bB
Rev-6.1%D
D/E0.96C+
P/S1.9xB
PEG216.92D
21.2Score
$26.87$67.4B
1Y Target$29.82Analyst consensus · 11 analysts
5Y Target$52.15Compound horizon
10Y Target$93.21Long-dated conviction
FCF$2.2bTTM
B
FCF $2.2b — solid, comfortably covers operations and capital return
Rev-6.1%TTM YoY
D
Revenue -6.1% — meaningful contraction
D/E0.96
C+
D/E 0.96 — above the Communication Services debt median (≈75th pctile)
P/S1.9x
B
P/S 1.9x — near the Communication Services median (≈60th pctile)
PEG216.92
D
PEG 216.92 — very expensive; pricing in best-case scenarios

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 21.2
Quality0.27
Growth0.42
Value0.09
Entry · Margin of safety
52-week rangeNear 52-week high
10% off the 12-month high
vs DCF fair value92% aboveest. fair value ~$14
What the price assumes: free cash flow compounding at ~33% a year for the next decade — vs the ~25% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability33% · B+gross profit ÷ total assets (Novy-Marx)
ROIC-2.2% · Freturn on invested capital — not score-weighted

Model-generatedGenerated by the Bull Rankings model from this company's reported fundamentals, and checked against the figures shown above.

Why now
Entertainment · market cap $67.4b. 10% off the 52-week high of $30.00. Revenue -6% — in contraction; any catalyst that reverses this triggers re-rating. 11 sell-side analysts rate this a Hold with a mean 1-yr target of $29.82 (implying +11% upside).
Moat
$67.4b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition.
Risk
Revenue contracting -6% — the operational turn is not yet visible in the top line. Currently unprofitable (margin -8.8%) — path to GAAP profitability is the core thesis risk. Beta 1.56 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return.
Horizon
1-3 yr $29.82 (11-analyst consensus) — catalyst-driven; binary events dominate. 5 yr $52.15 — requires the platform / technology to reach commercial scale. 10 yr $93.21 — return distribution heavily skewed.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.

WBD vs the Top Picks average

PillarWBDBook avgDiff
Quality0.270.83-0.57
Growth0.420.92-0.50
Value0.090.75-0.66

Averaged across the 30 names in today's Top Picks (mean score 82.4). A name can beat these averages and still be absent from the book — it also applies concentration limits.

Trend
-0.5 over 37 daily scores
From 21.7 (Jun 22) → 21.2 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Shares to buy
74
Position size
$1,988
4.0% of portfolio
Stop price
$20.15
25% below $26.87
$ at risk if stopped
$497.10
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

Warner Bros. Discovery, Inc. (WBD): score, valuation & FAQ

Warner Bros. Discovery, Inc. (WBD) is a Entertainment company that scores 21.2 out of 100 on the Bull Rankings quality-growth model — a weak reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

The model flags Rev (D) and PEG (D) as weaker areas. On valuation, WBD sits about 92% above our discounted-cash-flow fair value — the current price implies roughly 33% annual free-cash-flow growth over the next decade.

Is WBD a good stock to buy?

Bull Rankings scores WBD 21.2 out of 100 on its quality-growth model, which is a weak reading. A score is a quantitative screen of Warner Bros. Discovery, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does WBD score 21.2 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). WBD grades middle-of-pack across the strip, and is held back by Rev (D) and PEG (D). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is WBD overvalued or undervalued?

Based on $26.87, WBD sits about 92% above our discounted-cash-flow fair value — the current price implies roughly 33% annual free-cash-flow growth over the next decade. Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in WBD?

Revenue contracting -6% — the operational turn is not yet visible in the top line. Currently unprofitable (margin -8.8%) — path to GAAP profitability is the core thesis risk. Beta 1.56 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.

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