What is Warner Bros. Discovery, Inc. (WBD) DCF Fair Value and Intrinsic Value in 2026?

Warner Bros. Discovery, Inc. (WBD) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is Warner Bros. Discovery, Inc.'s historical Return on Invested Capital (ROIC) and Moat Rating?

Warner Bros. Discovery, Inc. operates in the Communication Services sector (Entertainment) with an economic moat rating of NONE. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is Warner Bros. Discovery, Inc.'s financial health rating and Piotroski F-Score?

Warner Bros. Discovery, Inc.'s balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor Warner Bros. Discovery, Inc. (WBD) for quarterly SEC filing thesis breaks?

LocalAlpha audits Warner Bros. Discovery, Inc.'s 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksWBD

WBD

Warner Bros. Discovery, Inc. - Communication Services / EntertainmentINTACT

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.

Share Price

$28.04

52W: $17.08 - $30

DCF Fair Value

$111.11

+74.8% MoS

Thesis Hub

P/E (TTM)

20x

ROIC

Operating Margin

5.1%

FCF Yield

23%

Debt / Equity

0.94x

Piotroski Score

6/9

Altman Z-Score

2.75

Market Cap

$70.3B

Price vs. Intrinsic Value Corridor

Margin of Safety Buy Zone (<25% Discount)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$111.11

MOS Buy Target (-25%)

$83.33

Valuation Overlays: DCF Fair Value ($111.11) 25% MOS Buy Target ($83.33)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$28.04

DCF Fair Value

$110.95

+74.7% MoS

Starting Free Cash Flow ($M)$16,167M

$100M$16,167M (Reported)$50,000M

Stage 1 Growth (Years 1-5)5.3%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)$28,600M

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$133.0B

PV of Terminal Value

$173.7B

Implied Enterprise Value

$306.7B

Implied Equity Value

$278.1B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$17,024	$17,926	$18,876	$19,877	$20,930	$21,872	$22,856	$23,885	$24,960	$26,083
Present Value (PV)	$15,618	$15,088	$14,576	$14,081	$13,603	$13,042	$12,503	$11,987	$11,492	$11,018

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number

N/A

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

Not calculable here: the formula takes a square root of EPS × book value, so it breaks down when trailing earnings (or book value) are negative. A company losing money has no defensive-investor price under Graham's classic test — lean on the DCF and solvency scores instead.

EPS: $-1.28BVPS: $13.09

Revised Graham Formula

N/A

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings21.9% Yield

$6.13 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $15.4BYield: 21.9%

Reverse DCF: Market Growth Expectation

EXTREMELY LOW BARRIER

-15.7% CAGR (Next 10 Yrs)

At the current price of $28.04, the market is assuming the business will compound Free Cash Flow at -15.7% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

✓ Low market hurdle: Easy for a wide-moat compounder to beat.

Autonomous Thesis Underwriting

Surveil WBD with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Warner Bros. Discovery, Inc. - . If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 5.1% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: Warner Bros. Discovery, Inc. - (WBD) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Warner Bros. Discovery, Inc. - .

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Warner Bros. Discovery, Inc. - has an estimated DCF intrinsic fair value of $111.11 per share compared to its current market price of $28.04. This represents an estimated 74.8% margin of safety (trading below fair value). Additionally, its classic Benjamin Graham Number stands at $N/A.