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

As of 17 October 2025, the valuation grade for Warner Bros. Discovery, Inc. has moved from expensive to attractive, indicating a shift towards a more favorable assessment. The company appears undervalued, supported by a Price to Book Value of 0.72, an EV to EBITDA ratio of 7.95, and an EV to Sales ratio of 1.51. In comparison to peers, Comcast Corp. shows a more attractive EV to EBITDA of 6.46, while The Walt Disney Co. has a significantly higher P/E ratio of 15.26, highlighting Warner Bros. Discovery's relative undervaluation.
Recent stock performance reinforces this valuation narrative, with Warner Bros. Discovery achieving a 1-year return of 133.80%, significantly outperforming the S&P 500's return of 14.08% over the same period. This strong return suggests that the market may be recognizing the company's potential, further supporting the view that it is currently undervalued.