Using the industry peer median P/E multiple (trailing + forward), Warner Bros. Discovery, Inc. (WBD) has a fair value of $3.44 based on 3 comparable companies in the Entertainment industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Warner Bros. Discovery, Inc.WBD | 68,765 | 93.7x | — |
| Comcast CorporationCMCSA | 104,780 | 5.3x | 7.8x |
| Fox CorporationFOXA | 26,218 | 12.0x | 12.6x |
| TKO Group Holdings, Inc.TKO | 15,185 | 85.1x | 38.3x |
| Industry Median | 12.0x | 12.6x | |
| (*) Profit after tax | 727 | ||
| Equity Value | 8,714 | ||
| (/) Outstanding shares | 2,530 | ||
| Fair Price | $3 | ||
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.