Is Warner Bros. Discovery, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Warner Bros. Discovery, Inc. moved from expensive to attractive, indicating a shift in perception towards the company's value. The company appears to be undervalued, particularly when considering its Price to Book Value of 0.72 and an EV to EBITDA ratio of 7.95, which are significantly lower than industry norms. Additionally, the EV to Capital Employed stands at 0.86, suggesting efficient use of capital relative to its enterprise value.
In comparison to peers, Warner Bros. Discovery's valuation metrics are notably less favorable; for instance, The Walt Disney Co. has a P/E ratio of 15.26, while Comcast Corp. boasts a more attractive EV to EBITDA of 6.46. Despite this, Warner Bros. has shown impressive stock performance, with a year-to-date return of 72.09% compared to the S&P 500's 13.30%, and a one-year return of 133.80% against the S&P 500's 14.08%. This strong performance reinforces the notion that the stock may be undervalued relative to its recent returns.