Stock Analysis on Net

Warner Bros. Discovery Inc. (NASDAQ:WBD)

This company has been moved to the archive! The financial data has not been updated since November 4, 2022.

Enterprise Value to EBITDA (EV/EBITDA)

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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Warner Bros. Discovery Inc., EBITDA calculation

US$ in millions

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12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net income (loss) available to Discovery, Inc. 1,006 1,219 2,069 594 (337)
Add: Net income attributable to noncontrolling interest 191 136 144 87 24
Add: Income tax expense 236 373 81 341 176
Earnings before tax (EBT) 1,433 1,728 2,294 1,022 (137)
Add: Interest expense, net 633 648 677 729 475
Earnings before interest and tax (EBIT) 2,066 2,376 2,971 1,751 338
Add: Content rights amortization and impairment 3,501 2,956 2,853 3,288 1,910
Add: Depreciation and amortization 1,582 1,359 1,347 1,398 330
Earnings before interest, tax, depreciation and amortization (EBITDA) 7,149 6,691 7,171 6,437 2,578

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Item Description The company
EBITDA To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. Warner Bros. Discovery Inc. EBITDA decreased from 2019 to 2020 but then increased from 2020 to 2021 not reaching 2019 level.

Enterprise Value to EBITDA Ratio, Current

Warner Bros. Discovery Inc., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 37,871
Earnings before interest, tax, depreciation and amortization (EBITDA) 7,149
Valuation Ratio
EV/EBITDA 5.30
Benchmarks
EV/EBITDA, Competitors1
Alphabet Inc. 21.17
Comcast Corp. 6.58
Meta Platforms Inc. 23.39
Netflix Inc. 17.95
Walt Disney Co. 17.21
EV/EBITDA, Sector
Media & Entertainment 19.43
EV/EBITDA, Industry
Communication Services 14.71

Based on: 10-K (reporting date: 2021-12-31).

1 Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.


Enterprise Value to EBITDA Ratio, Historical

Warner Bros. Discovery Inc., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 26,581 42,035 28,601 33,012 16,764
Earnings before interest, tax, depreciation and amortization (EBITDA)2 7,149 6,691 7,171 6,437 2,578
Valuation Ratio
EV/EBITDA3 3.72 6.28 3.99 5.13 6.50
Benchmarks
EV/EBITDA, Competitors4
Alphabet Inc. 18.08 20.84 17.39
Comcast Corp. 8.45 10.36 8.66
Meta Platforms Inc. 10.85 17.31 17.76
Netflix Inc. 9.51 16.57 13.35
Walt Disney Co. 34.53 60.13 16.10
EV/EBITDA, Sector
Media & Entertainment 14.62 18.67 14.92
EV/EBITDA, Industry
Communication Services 11.57 14.51 11.51

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 See details »

2 See details »

3 2021 Calculation
EV/EBITDA = EV ÷ EBITDA
= 26,581 ÷ 7,149 = 3.72

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/EBITDA Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. Warner Bros. Discovery Inc. EV/EBITDA ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.