NASDAQ · Communication Services

Warner Bros. Discovery, Inc.

WBD · Entertainment

$26.95

▼ -0.02 (-0.07%)

Data cached · refreshes every 10 min

Mr. Market is currently offering Warner Bros. Discovery, Inc. at $26.95.

The business passes only 1 of 6 of Graham's defensive criteria — well below his required standard.

Overall Grade

Defensive

Enterprising

Profitability D

Gross Profit Margin 44.0%

Operating Margin 3.5%

Net Income Margin 1.9%

Fin. Health D

Years to Pay Off Debt 44.8 yrs

Working Capital vs Long-Term Debt -$31.7B

Working Capital $706M

Valuation F

Margin of Safety 0.0%

Price-to-Book 1.88x

Cash Flow C

Free Cash Flow $3.1B

CapEx % of Net Income 169.3%

Owner Earnings $19.5B

1/6

Graham Score

Speculative

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $67.6B

Enterprise Value $100.3B

P/E (TTM) 92.93

Dividend Yield N/A

Exchange NASDAQ

Key Margins

Gross Profit 44.0%

Operating Margin 3.5%

Net Margin 1.9%

Company Info

Sector Communication Services

Industry Entertainment

Employees 35500

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Warner Bros. Discovery, Inc. at $26.95.

The business passes only 1 of 6 of Graham's defensive criteria — well below his required standard.

At $26.95, the stock trades at a 179% premium to its Graham Number of $9.67. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

About Warner Bros. Discovery, Inc.

Warner Bros. Discovery, Inc. operates as a media and entertainment company worldwide. It operates through three segments: Streaming, Studios, and Global Linear Networks. The Streaming segment offers streaming services, such as HBO Max and discovery+, and premium pay-TV services, including HBO and certain premium sports streaming products for mobile and connected TV devices. The Studios segment is involved in the production and release of feature films for initial exhibition in theaters, production and initial licensing of television programs to third parties and its networks/streaming services. This segment also distributes films and television programs to various third-party and internal television, streaming services, and physical and digital home entertainment markets; related consumer products and themed experience licensing; and publishes, develops, licenses, and distributes content for the interactive space in platforms, including console, handheld, mobile, and PC-based gaming for both internal and third-party game titles. The Global Linear Networks segment provides general and lifestyle entertainment networks, news networks; and hosts international media networks and global sports networks. In addition, the company offers a portfolio of content and products for television, film, streaming, interactive gaming, publishing, themed experiences, and consumer products under the Discovery Channel, HBO Max, CNN, DC Studios, TNT Sports, HBO, Food Network, TLC, TBS, Warner Bros. Motion Picture Group, Warner Bros. Television Group, Warner Bros. Games, Adult Swim, Turner Classic Movies, and other brands. Warner Bros. Discovery, Inc. was incorporated in 2008 and is headquartered in New York, New York.

Showing Key Metrics

Income Highlights

Metric	2025	2024	2023	2022	2021
Gross Profit %	44.0% ▲	41.6%	40.6%	39.6%	N/A
Operating Margin %	3.5% ▲	0.0%	-2.1%	-10.3%	N/A
Net Income %	1.9% ▲	-28.8%	-7.6%	-21.8%	N/A
Diluted EPS	0.29 ▲	-4.62	-1.28	-3.82	N/A

Balance Sheet Highlights

Metric	2025	2024	2023	2022	2021
Total Assets	$100.1B	$104.6B	$122.8B	$134.0B	N/A
Total Debt	$32.6B ↓	$39.5B	$43.7B	$49.0B	N/A
Working Capital	$706M ▲	-$1.7B	-$1.1B	-$1.0B	N/A
Years to Pay Debt	44.80	-3.49	-13.97	-6.65	N/A

Cash Flow Highlights

Metric	2025	2024	2023	2022	2021
Free Cash Flow	$3.1B ▼	$4.4B	$6.2B	$3.3B	N/A
Owner Earnings	$19.5B	$10.6B	$22.2B	$15.0B	N/A
CapEx % of Net Income	169.3%	N/A	N/A	N/A	N/A

Income Statement

	2025	2024	2023	2022	2021
Tax Effect Of Unusual Items	469,980	-1,993,110	-178,394	-684,190
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	19,025,000	21,103,000	23,246,000	17,772,000
Total Unusual Items	2,238,000	-9,491,000	-879,000	-3,601,000
Total Unusual Items Excluding Goodwill	2,238,000	-9,491,000	-879,000	-3,601,000
Net Income From Continuing Operation Net Minority Interest	727,000	-11,311,000	-3,126,000	-7,371,000
Reconciled Depreciation	17,539,000	20,983,000	24,009,000	21,354,000
Reconciled Cost Of Revenue	9,030,000	9,024,000	8,502,000	6,281,000
EBITDA	21,263,000	11,612,000	22,367,000	14,171,000
EBIT	3,724,000	-9,371,000	-1,642,000	-7,183,000
Net Interest Income	-1,879,000	-1,807,000	-2,042,000	-1,710,000
Interest Expense	2,085,000	2,017,000	2,221,000	1,777,000
Interest Income	206,000	210,000	179,000	67,000
Normalized Income	-1,041,020	-3,813,110	-2,425,394	-4,454,190
Net Income From Continuing And Discontinued Operation	727,000	-11,311,000	-3,126,000	-7,371,000
Total Expenses	35,987,000	39,303,000	42,207,000	37,313,000
Total Operating Income As Reported	738,000	-10,032,000	-1,548,000	-7,370,000
Diluted Average Shares	2,530,000	2,450,000	2,436,000	1,940,000
Basic Average Shares	2,475,000	2,450,000	2,436,000	1,940,000
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	728,000	-11,314,000	-3,126,000	-7,420,000
Average Dilution Earnings			0	0	110,000
Net Income Common Stockholders	728,000	-11,314,000	-3,126,000	-7,420,000
Otherunder Preferred Stock Dividend	-1,000	3,000	0	0
Preferred Stock Dividends				49,000	110,000
Net Income	727,000	-11,311,000	-3,126,000	-7,371,000
Minority Interests	-22,000	171,000	-47,000	-74,000
Net Income Including Noncontrolling Interests	749,000	-11,482,000	-3,079,000	-7,297,000
Net Income Continuous Operations	749,000	-11,482,000	-3,079,000	-7,297,000
Tax Provision	890,000	94,000	-784,000	-1,663,000
Pretax Income	1,639,000	-11,388,000	-3,863,000	-8,960,000
Other Income Expense	2,209,000	-9,599,000	-935,000	-3,754,000
Other Non Operating Income Expenses	-5,000	13,000	26,000	7,000
Special Income Charges	2,203,000	-9,147,000	-698,000	-3,679,000
Gain On Sale Of Business	0	194,000	0	195,000
Other Special Charges	-2,774,000	-709,000	36,000		10,000
Impairment Of Capital Assets	172,000	9,603,000	77,000	117,000
Restructuring And Mergern Acquisition	399,000	447,000	585,000	3,757,000
Earnings From Equity Interest	-24,000	-121,000	-82,000	-160,000
Gain On Sale Of Security	35,000	-344,000	-181,000	78,000
Net Non Operating Interest Income Expense	-1,879,000	-1,807,000	-2,042,000	-1,710,000
Interest Expense Non Operating	2,085,000	2,017,000	2,221,000	1,777,000
Interest Income Non Operating	206,000	210,000	179,000	67,000
Operating Income	1,309,000	18,000	-886,000	-3,496,000
Operating Expense	15,102,000	16,333,000	17,681,000	16,871,000
Depreciation Amortization Depletion Income Statement	5,684,000	7,037,000	7,985,000	7,193,000
Depreciation And Amortization In Income Statement	5,684,000	7,037,000	7,985,000	7,193,000
Selling General And Administration	9,418,000	9,296,000	9,696,000	9,678,000
Gross Profit	16,411,000	16,351,000	16,795,000	13,375,000
Cost Of Revenue	20,885,000	22,970,000	24,526,000	20,442,000
Total Revenue	37,296,000	39,321,000	41,321,000	33,817,000
Operating Revenue	36,215,000	38,088,000	40,140,000	33,026,000

Balance Sheet

	2025	2024	2023	2022	2021
Treasury Shares Number	230,000	230,000	230,000	230,000
Preferred Shares Number	13,000	13,000	13,000	13,000
Ordinary Shares Number	2,480,000	2,454,000	2,439,000	2,430,000
Share Issued	2,710,000	2,684,000	2,669,000	2,660,000
Net Debt	28,001,000	34,193,000	39,889,000	45,268,000
Total Debt	32,567,000	39,505,000	43,669,000	48,999,000
Tangible Book Value	-36,892,000	-43,031,000	-49,257,000	-58,977,000
Invested Capital	68,486,000	73,542,000	88,895,000	96,094,000
Working Capital	706,000	-1,732,000	-1,114,000	-1,018,000
Net Tangible Assets	-36,892,000	-43,031,000	-49,257,000	-58,977,000
Common Stock Equity	35,919,000	34,037,000	45,226,000	47,095,000
Total Capitalization	68,347,000	70,794,000	87,115,000	95,729,000
Total Equity Gross Minority Interest	37,166,000	34,938,000	46,472,000	48,667,000
Minority Interest	1,247,000	901,000	1,246,000	1,572,000
Stockholders Equity	35,919,000	34,037,000	45,226,000	47,095,000
Gains Losses Not Affecting Retained Earnings	-407,000	-1,067,000	-741,000	-1,523,000
Other Equity Adjustments	-407,000	-1,067,000	-741,000	-1,523,000
Treasury Stock	8,244,000	8,244,000	8,244,000	8,244,000
Retained Earnings	-11,512,000	-12,239,000	-928,000	2,205,000
Additional Paid In Capital	56,055,000	55,560,000	55,112,000	54,630,000
Capital Stock	27,000	27,000	27,000	27,000
Common Stock	27,000	27,000	27,000	27,000
Total Liabilities Net Minority Interest	62,919,000	69,622,000	76,285,000	85,334,000
Total Non Current Liabilities Net Minority Interest	50,419,000	53,812,000	60,953,000	70,317,000
Other Non Current Liabilities	11,608,000	10,070,000	10,328,000	10,669,000
Non Current Deferred Liabilities	6,383,000	6,985,000	8,736,000	11,014,000
Non Current Deferred Taxes Liabilities	6,383,000	6,985,000	8,736,000	11,014,000
Long Term Debt And Capital Lease Obligation	32,428,000	36,757,000	41,889,000	48,634,000
Long Term Debt	32,428,000	36,757,000	41,889,000	48,634,000
Current Liabilities	12,500,000	15,810,000	15,332,000	15,017,000
Current Deferred Liabilities	1,642,000	1,569,000	1,924,000	1,694,000
Current Deferred Revenue	1,642,000	1,569,000	1,924,000	1,694,000
Current Debt And Capital Lease Obligation	139,000	2,748,000	1,780,000	365,000
Current Debt	139,000	2,748,000	1,780,000	365,000
Other Current Borrowings	139,000	2,748,000	1,780,000		339,000
Payables And Accrued Expenses	10,719,000	11,493,000	11,628,000	12,958,000
Current Accrued Expenses	8,958,000	9,794,000	8,250,000	8,351,000
Payables	1,761,000	1,699,000	3,378,000	4,607,000
Other Payable			2,118,000	3,153,000	772,000
Total Tax Payable	668,000	644,000
Accounts Payable	1,093,000	1,055,000	1,260,000	1,454,000
Total Assets	100,085,000	104,560,000	122,757,000	134,001,000
Total Non Current Assets	86,879,000	90,482,000	108,539,000	120,002,000
Other Non Current Assets	7,383,000	7,327,000	8,099,000	8,629,000
Investments And Advances					543,000
Long Term Equity Investment					543,000
Goodwill And Other Intangible Assets	72,811,000	77,068,000	94,483,000	106,072,000
Other Intangible Assets	46,878,000	51,401,000	59,514,000	71,634,000
Goodwill	25,933,000	25,667,000	34,969,000	34,438,000
Net PPE	6,685,000	6,087,000	5,957,000	5,301,000
Accumulated Depreciation	-4,826,000	-4,035,000	-3,085,000	-2,055,000
Gross PPE	11,511,000	10,122,000	9,042,000	7,356,000
Construction In Progress	819,000	601,000	344,000	568,000
Other Properties					672,000
Machinery Furniture Equipment	6,654,000	5,689,000	4,685,000	3,537,000
Properties	4,038,000	3,832,000	4,013,000	3,251,000
Current Assets	13,206,000	14,078,000	14,218,000	13,999,000
Other Current Assets	1,952,000	2,056,000	2,283,000	2,112,000
Prepaid Assets	322,000	784,000	843,000	545,000
Receivables	6,366,000	5,926,000	7,312,000	7,611,000
Other Receivables	1,072,000	979,000	1,265,000	1,231,000
Accounts Receivable	5,294,000	4,947,000	6,047,000	6,380,000
Allowance For Doubtful Accounts Receivable					-54,000
Gross Accounts Receivable					2,500,000
Cash Cash Equivalents And Short Term Investments	4,566,000	5,312,000	3,780,000	3,731,000
Cash And Cash Equivalents	4,566,000	5,312,000	3,780,000	3,731,000

Cash Flow

	2025	2024	2023	2022	2021
Free Cash Flow	3,088,000	4,427,000	6,161,000	3,317,000
Repayment Of Debt	-27,094,000	-19,388,000	-12,206,000	-9,710,000
Issuance Of Debt	22,534,000	15,820,000	6,703,000	2,393,000
Capital Expenditure	-1,231,000	-948,000	-1,316,000	-987,000
Interest Paid Supplemental Data	2,295,000	1,996,000	2,237,000
Income Tax Paid Supplemental Data	1,926,000	1,113,000	1,440,000
End Cash Position	4,570,000	5,416,000	4,319,000	3,930,000
Beginning Cash Position	5,416,000	4,319,000	3,930,000	3,905,000
Effect Of Exchange Rate Changes	254,000	-180,000	8,000	-61,000
Changes In Cash	-1,100,000	1,277,000	381,000	86,000
Financing Cash Flow	-4,240,000	-3,749,000	-5,837,000	-7,742,000
Cash Flow From Continuing Financing Activities	-4,240,000	-3,749,000	-5,837,000	-7,742,000
Net Other Financing Charges	320,000	-181,000	-334,000	-425,000
Net Issuance Payments Of Debt	-4,560,000	-3,568,000	-5,503,000	-7,317,000
Net Short Term Debt Issuance	0	0	-7,000	-2,000
Short Term Debt Payments	-4,228,000	-14,203,000	-5,214,000	-2,395,000
Short Term Debt Issuance	4,228,000	14,203,000	5,207,000	2,393,000
Net Long Term Debt Issuance	-4,560,000	-3,568,000	-5,496,000	-7,315,000
Long Term Debt Payments	-22,866,000	-5,185,000	-6,992,000	-7,315,000
Long Term Debt Issuance	18,306,000	1,617,000	1,496,000	0
Investing Cash Flow	-1,179,000	-349,000	-1,259,000	3,524,000
Cash Flow From Continuing Investing Activities	-1,179,000	-349,000	-1,259,000	3,524,000
Net Other Investing Changes	72,000	31,000	98,000	9,000
Net Investment Purchase And Sale	80,000	677,000	121,000	1,058,000
Sale Of Investment	80,000	677,000	121,000	1,058,000
Purchase Of Investment			0	0	-189,000
Net Business Purchase And Sale	-100,000	-109,000	-162,000	3,444,000
Sale Of Business				3,612,000
Purchase Of Business	-100,000	-109,000	-162,000	-168,000
Net PPE Purchase And Sale	-1,231,000	-948,000	-1,316,000	-987,000
Purchase Of PPE	-1,231,000	-948,000	-1,316,000	-987,000
Operating Cash Flow	4,319,000	5,375,000	7,477,000	4,304,000
Cash Flow From Continuing Operating Activities	4,319,000	5,375,000	7,477,000	4,304,000
Change In Working Capital	-11,302,000	-12,126,000	-11,989,000	-10,982,000
Change In Other Working Capital	327,000	-260,000	824,000	-130,000
Change In Payables And Accrued Expense	-11,293,000	-12,878,000	-13,125,000	-11,033,000
Change In Payable	-11,293,000	-12,878,000	-13,125,000	-11,033,000
Change In Account Payable	108,000	-529,000	-820,000	1,529,000
Change In Receivables	-336,000	1,012,000	312,000	181,000
Other Non Cash Items	69,000	280,000	314,000	4,032,000
Stock Based Compensation	769,000	557,000	500,000	412,000
Asset Impairment Charge	172,000	9,603,000	77,000	116,000
Deferred Tax	-710,000	-1,732,000	-2,344,000	-2,842,000
Deferred Income Tax	-710,000	-1,732,000	-2,344,000	-2,842,000
Depreciation Amortization Depletion	17,539,000	20,983,000	24,009,000	21,354,000
Depreciation And Amortization	17,539,000	20,983,000	24,009,000	21,354,000
Amortization Cash Flow	11,855,000	13,946,000	16,024,000	14,161,000
Amortization Of Intangibles	11,855,000	13,946,000	16,024,000	14,161,000
Depreciation	5,684,000	7,037,000	7,985,000	7,193,000
Operating Gains Losses	-2,967,000	-708,000	-11,000	-489,000
Earnings Losses From Equity Investments	75,000	167,000	157,000	211,000
Gain Loss On Investment Securities	-97,000	-243,000	-151,000	-700,000
Gain Loss On Sale Of PPE				116,000	-71,000
Net Income From Continuing Operations	749,000	-11,482,000	-3,079,000	-7,297,000

These metrics estimate what Warner Bros. Discovery, Inc. is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

$9.67

Margin of Safety

Market Cap ÷ Company Value

1.84

P/B Ratio

1.88

Warren's Owner Earnings

$19.5B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

1/6 — Speculative Investor

✅ Adequate Size

$37.3B

vs > $1.5B revenue

❌ Strong Financial Condition

1.06x

vs Current Ratio > 2.0x

❌ Earnings Stability

3 loss years (4 yrs data)

vs No negative EPS years

❌ Dividend Record

No dividend

vs Uninterrupted dividends

❌ Moderate P/E Ratio

92.9x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

1.88x P/B (P/E×P/B: 174.8)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$-19.83

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

$5.80

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2025	2024	2023	2022	2021
Capital Expenditure % of Net Income	169.3%	N/A	N/A	N/A	N/A
Repurchase of Capital Stock	N/A	N/A	N/A	$0M	$0M
Free Cash Flow	$3.1B ▼	$4.4B ▼	$6.2B ▲	$3.3B •	N/A •
Warren's Owner Earnings	$19.5B	$10.6B	$22.2B	$15.0B	N/A

Peers & Industry Comparison

Entertainment — Auto-detected peers

Company	Price	Market Cap	P/E	Gross Margin	Net Margin	Revenue
WBD	$26.95	$67.6B	92.93	44.0%	1.9%	$37.3B
DIS Walt Disney Company (The)	$101.42	$179.7B	14.9	37.3%	12.8%	$95.7B
NFLX Netflix, Inc.	$91.03	$383.3B	29.4	49.0%	28.5%	$46.9B

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

4.21%

Moderate — some alignment with shareholders

Return on Equity (ROE)

2.0%

Weak — poor returns on equity

Return on Assets (ROA)

0.7%

Poor — assets are not generating adequate returns

Debt Trend YoY

-17.6% YoY

Debt is declining — management is deleveraging

Leadership Team

David Zaslav

President, CEO & Director

Age 65

Pay: $28,819,583

3.964% of net income

Gunnar Wiedenfels Ph.

Senior EVP & CFO

Age 48

Pay: $6,999,144

0.963% of net income

Bruce Campbell

COO and Chief Revenue & Strategy Officer

Age 58

Pay: $9,354,161

1.287% of net income

Jean-Briac Perrette

President and CEO of Global Streaming & Games

Age 54

Pay: $9,160,778

1.260% of net income

Gerhard Zeiler

President of International

Age 70

Pay: $7,349,182

1.011% of net income

Top Institutional Holders

Institution	% Owned	Shares
Vanguard Group Inc	11.30%	283,180,433
Blackrock Inc.	7.73%	193,830,450
State Street Corporation	5.23%	131,066,834
Harris Associates L.P.	3.15%	78,854,809
Geode Capital Management, LLC	2.66%	66,597,575
Goldman Sachs Group Inc	2.05%	51,340,535
Pentwater Capital Management Lp	1.84%	46,075,000
Sessa Capital IM, L.P.	1.82%	45,565,629

Risk Analysis

Beta (Market Risk)

1.57

High volatility — moves more than the market

Short Interest

2.4% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.99x

Conservative balance sheet — low financial risk

Current Ratio