What are the investment strengths of Warner Bros. Discovery Inc (WBD)?

FCF yield of 6.1% (4.1B/67.5B market cap) with EBITDA of 21.9B provides restructuring runway and optionality for strategic pivots P/S ratio of 1.78x vs industry median 1.39x is modest premium for 37.9B revenue base with 44% gross margins

What are the investment risks for Warner Bros. Discovery Inc (WBD)?

Net debt of 29.2B at 0.93x equity with interest expense exceeding operating income creates refinancing risk if rates stay elevated EPS declined 92% YoY and 62% over 5Y with negative tangible book (-37.8B) - equity value depends entirely on intangibles

Warner Bros. Discovery Inc

WBD

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Warner Bros. Discovery Inc AI Insights

Informational only. Not investment advice.

As of 2025-12-08

Snapshot

Goodwill of 25.9B is 72% of equity (36B) with tangible book value at -37.8B - impairment risk material[Goodwill]
FCF TTM of 4.1B vs net income of 485M - cash generation 8.5x reported earnings despite debt load[Free Cash Flow]
Interest expense TTM of 2.0B consumes 141% of operating income (1.4B) - debt servicing strains operations[Interest Expense]

Watch Triggers

Interest Expense: Exceeds 2.5B TTM or >150% of operating income — Signals debt spiral where operations can't cover financing costs
Free Cash Flow: Falls below 3B TTM — Reduces deleveraging capacity and may force asset sales
Goodwill: Impairment charge announced — Would confirm overpayment for Discovery merger, crush equity

Bull Case

FCF yield of 6.1% (4.1B/67.5B market cap) with EBITDA of 21.9B provides restructuring runway and optionality for strategic pivots

Free Cash FlowEBITDAMarket Cap

P/S ratio of 1.78x vs industry median 1.39x is modest premium for 37.9B revenue base with 44% gross margins

P/S RatioTotal RevenueGross Margin

Bear Case

Net debt of 29.2B at 0.93x equity with interest expense exceeding operating income creates refinancing risk if rates stay elevated

Net DebtDebt to EquityInterest Expense

EPS declined 92% YoY and 62% over 5Y with negative tangible book (-37.8B) - equity value depends entirely on intangibles

EPS Growth 1YEPS Growth 5YTangible Book Value

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

35%

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Forward Thesis

Deleveraging via FCF could reduce debt/equity from 0.93 to 0.7 within 24 months

1-3ymed

4.1B annual FCF provides deleveraging capacity
Net debt paydown of 1.3B TTM shows commitment
No dividend obligation preserves cash

Net debt 29.2B vs FCF 4.1B = 7yr payoffDebt reduced 1.3B TTM per net issuanceZero dividends paid per share TTM

Valuation Context

Caveats

Public Strategies Rankings

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WBD Fundamentals

Information → Wired and Wireless Telecommunications Carriers

Metric	Value	YoY Growth	Industry Percentile
Market Cap	$70.76B		—
Enterprise Value	$98.76B		—
P/E Ratio	94		—
Total Revenue - TTM	$37.3B	-5.1%	—
Earnings Per Share (diluted) - TTM	$0.29		—
Operating Margin - TTM	3.51%	+3.5%	—
Net Margin - TTM	1.95%	+30.7%	—
Free Cash Flow - TTM	$3.09B	-30.2%	—
Return on Common Equity - TTM	2.08%	+30.6%	—
Beta 5Y (Monthly)	unknown		—

WBD Dividend History

No dividends

WBD Stock Splits

1 stock split

08/07/141:2 split

WBD SEC Filings

Filing Date	Report Date	Report Type	Filing Link
02/27/26	12/31/25	Unknown	0001437107-26-000020
11/06/25	09/30/25	10-Q	0001437107-25-000216
08/07/25	06/30/25	10-Q	0001437107-25-000192
05/08/25	03/31/25	10-Q	0001437107-25-000096
02/27/25	12/31/24	Unknown	0001437107-25-000031
11/07/24	09/30/24	10-Q	0001437107-24-000187
08/07/24	06/30/24	10-Q	0001437107-24-000165
05/09/24	03/31/24	10-Q	0001437107-24-000110
02/23/24	12/31/23	10-K	0001437107-24-000017
11/08/23	09/30/23	10-Q	0001437107-23-000173
08/03/23	06/30/23	10-Q	0001437107-23-000144
05/05/23	03/31/23	10-Q	0001437107-23-000077
02/24/23	12/31/22	10-K	0001437107-23-000019
11/04/22	09/30/22	10-Q	0001437107-22-000231
08/05/22	06/30/22	10-Q	0001437107-22-000209
04/26/22	03/31/22	10-Q	0001437107-22-000138
02/24/22	12/31/21	10-K	0001437107-22-000031
11/03/21	09/30/21	10-Q	0001437107-21-000183
08/03/21	06/30/21	10-Q	0001437107-21-000166
04/29/21	03/31/21	10-Q	0001437107-21-000088
02/22/21	12/31/20	10-K	0001437107-21-000018
11/06/20	09/30/20	10-Q	0001437107-20-000089
08/05/20	06/30/20	10-Q	0001437107-20-000069
05/06/20	03/31/20	10-Q	0001437107-20-000026
02/27/20	12/31/19	10-K	0001437107-20-000006
11/07/19	09/30/19	10-Q	0001437107-19-000050
08/06/19	06/30/19	10-Q	0001437107-19-000039
05/02/19	03/31/19	10-Q	0001437107-19-000026
03/01/19	12/31/18	10-K	0001437107-19-000013
11/09/18	09/30/18	10-Q	0001437107-18-000091
08/08/18	06/30/18	10-Q	0001437107-18-000076
05/10/18	03/31/18	10-Q	0001437107-18-000059
02/28/18	12/31/17	10-K	0001437107-18-000028
11/02/17	09/30/17	10-Q	0001437107-17-000063
08/04/17	06/30/17	10-Q	0001437107-17-000030
05/09/17	03/31/17	10-Q	0001437107-17-000017
02/14/17	12/31/16	10-K	0001437107-17-000007
11/01/16	09/30/16	10-Q	0001437107-16-000106
08/02/16	06/30/16	10-Q	0001437107-16-000084
05/05/16	03/31/16	10-Q	0001437107-16-000072
02/18/16	12/31/15	10-K	0001437107-16-000059
11/03/15	09/30/15	10-Q	0001437107-15-000052
08/05/15	06/30/15	10-Q	0001437107-15-000034
05/05/15	03/31/15	10-Q	0001437107-15-000013
02/19/15	12/31/14	10-K	0001437107-15-000004
11/04/14	09/30/14	10-Q	0001437107-14-000072
07/31/14	06/30/14	10-Q	0001437107-14-000048
05/06/14	03/31/14	10-Q	0001437107-14-000029
02/20/14	12/31/13	10-K	0001437107-14-000016
10/31/13	09/30/13	10-Q	0001437107-13-000042
07/30/13	06/30/13	10-Q	0001437107-13-000031
05/07/13	03/31/13	10-Q	0001437107-13-000021
02/14/13	12/31/12	10-K	0001437107-13-000006
11/06/12	09/30/12	10-Q	0001437107-12-000015
07/31/12	06/30/12	10-Q	0001437107-12-000006
05/08/12	03/31/12	10-Q	0001193125-12-218697
02/17/12	12/31/11	10-K	0001193125-12-066285
11/02/11	09/30/11	10-Q	0001193125-11-291701
08/04/11	06/30/11	10-Q	0001193125-11-209774
04/29/11	03/31/11	10-Q	0001193125-11-117097
02/19/13	12/31/10	10-K/A	0001437107-13-000008
02/18/11	12/31/10	10-K	0001193125-11-040418
11/02/10	09/30/10	10-Q	0001193125-10-244545
08/03/10	06/30/10	10-Q	0001193125-10-175470
04/30/10	03/31/10	10-Q	0001193125-10-100744
02/22/10	12/31/09	10-K	0001193125-10-035850
11/03/09	09/30/09	10-Q	0000950123-09-056946
08/04/09	06/30/09	10-Q	0000950123-09-029613
05/04/09	03/31/09	10-Q	0000950133-09-001418
02/26/09	12/31/08	10-K	0000950133-09-000442
11/07/08	09/30/08	10-Q	0000950133-08-003644
06/30/08	06/30/08	Unknown	--
03/31/08	03/30/08	Unknown	--
12/31/07	12/31/07	Unknown	--
09/30/07	09/30/07	Unknown	--
06/30/07	06/30/07	Unknown	--
03/31/07	03/30/07	Unknown	--
12/31/06	12/31/06	Unknown	--
09/30/06	09/30/06	Unknown	--
06/30/06	06/30/06	Unknown	--
03/31/06	03/30/06	Unknown	--
12/31/05	12/31/05	Unknown	--
09/30/05	09/30/05	Unknown	--
06/30/05	06/30/05	Unknown	--
05/10/06	03/30/05	10-Q	0000950134-06-009385
07/15/05	03/30/05	MS10-Q	--
05/09/05	12/31/04	MS10-K	--
03/23/06	12/31/04	10-K	0000950134-06-005787
11/09/05	09/30/04	10-Q	0001047469-05-026433
08/10/05	06/30/04	10-Q	0001047469-05-021207
07/15/05	03/30/04	MS10-Q	--