Warner Bros.discovery Intrinsic Value Calculation – Warner Bros. Discovery Chooses to Maintain Discovery+ as an Independent Platform
February 10, 2023

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Warner Bros.discovery Intrinsic Value Calculation – Warner ($NASDAQ:WBD) Bros. Discovery, one of the leading entertainment companies in the world, has made the decision to maintain Discovery+ as an independent platform. This move by Warner Bros. Discovery marks a significant shift in their strategy as they had previously planned to merge the streaming service with their other streaming service, HBO Max. Warner Bros. Discovery is a global leader in the entertainment industry that develops, produces and distributes content across a range of multimedia platforms. With their expansive portfolio of world-renowned brands and franchises, Warner Bros. has been a major player in the industry for decades. They are responsible for some of the most beloved and iconic franchises including Harry Potter, Friends, and The Big Bang Theory. The decision to keep Discovery+ as a separate entity is part of a larger strategy by Warner Bros. to maximize the potential of their streaming services.
By maintaining Discovery+ as an independent platform, they are able to leverage their existing library of content and create more exclusive content tailored to the Discovery+ audience. This will help them better compete in the increasingly competitive streaming space and ensure that they remain a leader in the industry. By having two separate streaming services, they can capitalize on different audiences and increase their overall reach. This will ultimately help to increase their profits and provide them with more resources to continue developing new content and maintaining their position as a leader in the industry. It will allow them to maximize the potential of their streaming services while also providing them with more opportunities to generate revenue and remain a leader in the entertainment industry.
Price History
On Wednesday, WARNER BROS.DISCOVERY stock opened at $15.3 and closed at $14.6, down by 5.0% from prior closing price of 15.3. This was after news that the company had chosen to maintain Discovery+ as an independent platform, rather than merging it with its own streaming service, HBO Max. The move signals WB’s commitment to maintaining both streaming services as separate entities, with Discovery+ catered to a broader audience than HBO Max. With a library that spans documentaries, reality TV, and lifestyle content, Discovery+ is aimed at viewers who are looking for a more diverse range of content than what is available on HBO Max.
With the continued growth of streaming services, it makes sense for WB to keep Discovery+ as an independent platform, allowing it to leverage the advantages of both services and maximize its reach to viewers. The decision to keep Discovery+ as an independent platform shows that WB is dedicated to catering to different audiences and providing them with the content they are looking for. With the continued growth of streaming services, this is a savvy move by WB, and one that could prove beneficial for the company in the long run. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Warner Bros.discovery. More…
| Total Revenues | Net Income | Net Margin |
| 26k | -5.18k | -12.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Warner Bros.discovery. More…
| Operations | Investing | Financing |
| 2.34k | 3.72k | -6.51k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Warner Bros.discovery. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 136.05k | 85.97k | 19.98 |
Key Ratios Snapshot
Some of the financial key ratios for Warner Bros.discovery are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 32.9% | -8.8% | -18.7% |
| FCF Margin | ROE | ROA |
| 6.2% | -6.1% | -2.2% |
Analysis – Warner Bros.discovery Intrinsic Value Calculation
GoodWhale has analyzed the fundamentals of WARNER BROS.DISCOVERY and determined its fair value to be around $13.6. This value was calculated using their proprietary Valuation Line. Currently, the share price of WARNER BROS.DISCOVERY is $14.6, which is slightly overvalued by 7.7%. WARNER BROS.DISCOVERY is a publicly traded company that has recently been subject to analysis by GoodWhale. GoodWhale has attempted to determine the fair value for WARNER BROS.DISCOVERY by utilizing their Valuation Line, which is a proprietary tool developed by the company. After analyzing the data, the fair value of the stock was determined to be around $13.6. However, the current market price of WARNER BROS.DISCOVERY is $14.6, which is slightly overvalued by 7.7%. This means that the current price of WARNER BROS.DISCOVERY is higher than what GoodWhale believes to be its fair value. Investors should be aware that they may be paying more than what the stock is actually worth when investing in WARNER BROS.DISCOVERY. GoodWhale’s analysis of WARNER BROS.DISCOVERY provides insight into its fair value, but investors should always do their own due diligence before investing in any company. It is important to research the company and understand its fundamentals before investing in it, as this will help ensure that investors are not overpaying for a stock or buying into a company with questionable fundamentals. More…
Peers
The entertainment industry is currently undergoing a period of intense competition, with Warner Bros. Discovery Inc. emerging as a major player. The company’s competitors include The Walt Disney Co, Netflix Inc, AT&T Inc, and a host of other smaller firms. Warner Bros. Discovery Inc has been able to differentiate itself from its competitors through its focus on quality content and innovative marketing strategies.
– The Walt Disney Co ($NYSE:DIS)
Disney’s market cap is 179.53B as of 2022 and its ROE is 4.53%. The company is a leading entertainment and media conglomerate with businesses in film, television, theme parks, consumer products, and interactive media. Disney is also a major provider of family-friendly content across its various networks and platforms.
– Netflix Inc ($NASDAQ:NFLX)
Netflix, Inc. is an American over-the-top content platform and production company headquartered in Los Gatos, California. The company was founded in 1997 by Reed Hastings and Marc Randolph in Scotts Valley, California. It specializes in and provides streaming media, video-on-demand online, and DVD by mail. In 2013, Netflix expanded into film and television production, as well as online distribution.
As of 2022, Netflix’s market cap is 107.11B and its ROE is 22.38%. Netflix has been a driving force in the shift from traditional television viewing to online streaming. The company has invested heavily in original content, which has helped it grow its subscriber base and become one of the most popular streaming platforms.
– AT&T Inc ($NYSE:T)
AT&T Inc. is an American multinational conglomerate holding company headquartered at Whitacre Tower in Downtown Dallas, Texas. It is the world’s largest telecommunications company, the second largest provider of mobile telephone services, and the largest provider of fixed telephone services in the United States through AT&T Communications. Since June 14, 2018, it also became the parent company of mass media conglomerate WarnerMedia, making it the world’s largest entertainment company in terms of revenue. As of 2019, AT&T is ranked #9 on the Fortune 500 rankings of the largest United States corporations by total revenue.
AT&T Inc. has a market cap of 111.17B as of 2022. AT&T Inc.’s Return on Equity for the quarter that ended in Mar. 2021 was 12.91%.
Summary
Warner Bros. Discovery recently announced their decision to maintain Discovery+ as an independent platform, which caused the company’s stock price to drop that same day. Investors are now evaluating the potential profitability of the company’s decision, as well as the impact it may have on their overall share value. From a financial standpoint, it is important for investors to consider the cost of launching, maintaining and marketing the platform, and whether or not these costs will be outweighed by the potential revenue generated by Discovery+. Additionally, investors should take into account the competitive landscape and whether or not the platform can successfully compete with other streaming services.
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