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

As of 24 October 2025, the valuation grade for Warner Bros. Discovery, Inc. moved from expensive to attractive, indicating a shift towards a more favorable assessment. The company appears undervalued, particularly when considering its Price to Book Value of 0.72, EV to EBITDA of 7.95, and EV to Sales of 1.51. In comparison, The Walt Disney Co. is deemed expensive with a P/E ratio of 15.26, while Comcast Corp. is attractive with an EV to EBITDA of 6.46.
Recent performance shows that Warner Bros. Discovery has significantly outperformed the S&P 500, with a year-to-date return of 100.09% compared to the index's 15.47%. This strong performance reinforces the undervaluation narrative, suggesting that the market may not fully recognize the company's potential.