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

As of 24 October 2025, the valuation grade for Warner Bros. Discovery, Inc. has moved from expensive to attractive, indicating a shift in perception towards the company's value. Based on the available metrics, the company appears to be undervalued. Key ratios include a Price to Book Value of 0.72, an EV to EBITDA of 7.95, and an EV to Sales ratio of 1.51, which suggest that the company is trading at a discount relative to its assets and earnings potential.
In comparison to peers, Warner Bros. Discovery, Inc. has a significantly lower EV to EBITDA ratio than The Walt Disney Co., which stands at 13.46, and Comcast Corp., which is at 6.46. This highlights the relative attractiveness of Warner Bros. Discovery, Inc. despite its current challenges. Additionally, the company's stock has performed exceptionally well, with a year-to-date return of 100.09% compared to the S&P 500's 15.47%, reinforcing the narrative that it may be undervalued in the market.