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 FCFF (EV/FCFF)

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Free Cash Flow to The Firm (FCFF)

Warner Bros. Discovery Inc., FCFF 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)
Net income attributable to noncontrolling interests and redeemable noncontrolling interests 191 136 144 87 24
Net noncash charges 4,838 4,483 4,159 4,815 3,837
Changes in operating assets and liabilities, net of acquisitions and dispositions (3,237) (3,099) (2,973) (2,920) (1,895)
Cash provided by operating activities 2,798 2,739 3,399 2,576 1,629
Cash paid for interest, net of tax1 558 525 680 496 232
Purchases of property and equipment (373) (402) (289) (147) (135)
Free cash flow to the firm (FCFF) 2,983 2,862 3,790 2,925 1,726

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
FCFF Free cash flow to the firm is the cash flow available to the Warner Bros. Discovery Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Warner Bros. Discovery Inc. FCFF decreased from 2019 to 2020 but then slightly increased from 2020 to 2021.

Interest Paid, Net of Tax

Warner Bros. Discovery Inc., interest paid, net of tax calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Effective Income Tax Rate (EITR)
EITR1 16.00% 22.00% 4.00% 33.00% 35.00%
Interest Paid, Net of Tax
Cash paid for interest, before tax 664 673 708 740 357
Less: Cash paid for interest, tax2 106 148 28 244 125
Cash paid for interest, net of tax 558 525 680 496 232

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 2021 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= 664 × 16.00% = 106


Enterprise Value to FCFF Ratio, Current

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

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 37,871
Free cash flow to the firm (FCFF) 2,983
Valuation Ratio
EV/FCFF 12.70
Benchmarks
EV/FCFF, Competitors1
Alphabet Inc. 29.84
Comcast Corp. 16.82
Meta Platforms Inc. 31.71
Netflix Inc. 45.33
Walt Disney Co. 32.53
EV/FCFF, Sector
Media & Entertainment 32.70
EV/FCFF, Industry
Communication Services 39.67

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

1 Click competitor name to see calculations.

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


Enterprise Value to FCFF Ratio, Historical

Warner Bros. Discovery Inc., historical EV/FCFF 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
Free cash flow to the firm (FCFF)2 2,983 2,862 3,790 2,925 1,726
Valuation Ratio
EV/FCFF3 8.91 14.69 7.55 11.29 9.71
Benchmarks
EV/FCFF, Competitors4
Alphabet Inc. 27.17 29.53 28.19
Comcast Corp. 15.77 20.50 18.00
Meta Platforms Inc. 15.40 29.48 25.83
Netflix Inc. 335.37 95.41
Walt Disney Co. 78.66 63.77 143.18 18.02
EV/FCFF, Sector
Media & Entertainment 24.79 31.56 32.03
EV/FCFF, Industry
Communication Services 31.50 25.72 24.63

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/FCFF = EV ÷ FCFF
= 26,581 ÷ 2,983 = 8.91

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. Warner Bros. Discovery Inc. EV/FCFF ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.