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Graham Number is a figure that measures a stock's fundamental value by taking into account the company's earnings per share and book value per share. The Graham number is the upper bound of the price range that a defensive investor should pay for the stock. According to the theory, any stock price below the Graham number is considered undervalued, and thus worth investing in.
The historical rank and industry rank for Warner Bros. Discovery's Graham Number or its related term are showing as below:
XSWX:WBD's Price-to-Graham-Number is not ranked *
in the Media - Diversified industry.
Industry Median: 1.2 * Ranked among companies with meaningful Price-to-Graham-Number only.
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Warner Bros. Discovery (XSWX:WBD) Graham Number Explanation
Ben Graham actually did not publish a formula like this. But he wrote in The Intelligent Investor (1948 version) regarding to the criteria for purchases:
Current price should not be more than 15 times average earnings of the past three years.
Current price should not be more than 1.5 times the book value last reported. However, a multiplier of earnings below 15 could justify a correspondingly higher multiplier of assets. As a rule of thumb we suggest that the product of the multiplier times the ratio of price to book value should not exceed 22.5. (This figure corresponds to 15 times earnings and 1.5 times book value. It would admit an issue selling at only 9 times earnings and 2.5 times asset value, etc.)
Unlike valuation methods such as DCF or Discounted Earnings, the Graham number does not take growth into the valuation. Unlike the valuation methods based on book value alone, it takes into account the earnings power. Therefore, the Graham Number is a combination of asset valuation and earnings power valuation.
In general, the Graham number is a very conservative way of valuing a stock. It cannot be applied to companies with negative book values.
Warner Bros. Discovery's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Mar. 2026 )
=
21.575
/
N/A
=
N/A
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Please keep these in mind:
1. Graham Number does not take growth into account. Therefore it underestimates the values of the companies that have good earnings growth. We feel that if the earnings per share grows more than 10% a year, Graham Number underestimates the value.
2. Graham Number punishes the companies that have temporarily low earnings. Therefore, an average of earnings makes more sense in the calculation of Graham Number.
3. Graham Numbers underestimates companies that are light with book.
Warner Bros. Discovery Graham Number Related Terms
Warner Bros. Discovery Graham Number Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
XSWX:WBD vs LYV, FWONA, FOXA: Graham Number Comparison
For the Entertainment subindustry, Warner Bros. Discovery's Price-to-Graham-Number, along with its competitors' market caps and Price-to-Graham-Number data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Warner Bros. Discovery Price-to-Graham-Number vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Warner Bros. Discovery's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Warner Bros. Discovery's Price-to-Graham-Number falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Warner Bros. Discovery (XSWX:WBD) has a Graham Number of CHFN/A as of Mar. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Warner Bros. Discovery and its competitors. According to the industry distribution chart, Warner Bros. Discovery ranks #999999 out of 492 companies in the Media - Diversified industry.
Is Warner Bros. Discovery's Graham Number too high?
Warner Bros. Discovery's current Graham Number is CHFN/A. Based on the distribution chart, Warner Bros. Discovery ranks #999999 out of 492 companies in the Media - Diversified industry, which is in the bottom quartile relative to peers. Overall, Warner Bros. Discovery has a GF Score™ of 60/100, reflecting its overall financial health beyond just this single metric.
How does Warner Bros. Discovery's Graham Number compare to LYV and FWONA?
According to the Media - Diversified industry distribution chart, Warner Bros. Discovery ranks #999999 out of 492 companies for Graham Number. This places Warner Bros. Discovery in the lower half of its industry. The industry median Graham Number is 1.20. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Graham Number for a Media - Diversified company?
The median Graham Number among Media - Diversified companies is 1.20, based on 492 companies in the industry. Companies in the top quartile (top 25%) have a Graham Number significantly above this median, while those in the bottom quartile fall well below. However, Graham Number should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Graham Number mean?
A high Graham Number can signal that a stock is expensive relative to its fundamentals. The Graham Number values a company based on its per-share earnings and book value. View historical data on Warner Bros. Discovery and its competitors. For the Media - Diversified industry, the median Graham Number is 1.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Warner Bros. Discovery's current Graham Number is CHFN/A. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Warner Bros. Discovery stock overvalued right now?
Warner Bros. Discovery (XSWX:WBD) has a current Graham Number of CHFN/A. The stock's GF Value™ is CHF8.11, compared to a current price of CHF21.58 — trading 166% above its estimated fair value. The current Graham Number is CHFN/A. Warner Bros. Discovery's overall GF Score™ is 60/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Graham Number calculated?
Graham Number is calculated from a company's financial statements. For Warner Bros. Discovery (XSWX:WBD), the current Graham Number is CHFN/A as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Warner Bros. Discovery (XSWX:WBD) Overvalued in 2026?
Based on GuruFocus' analysis, Warner Bros. Discovery stock appears to be overvalued.
The current stock price of CHF21.58 is trading 166% above its estimated GF Value™ of CHF8.11.
Key valuation signals for XSWX:WBD:
Graham Number: CHFN/A
GF Value™: CHF8.11 vs. price of CHF21.58 (166% above fair value)
No single metric tells the full story. See the XSWX:WBD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Warner Bros. Discovery operates in three segments: streaming, studios, and linear networks. The streaming business includes HBO Max, which is rapidly increasing its international footprint in addition to its major presence in the US. Studios include industry leaders in both film and television, which produce movies and television series that are monetized in multiple ways, including theatrical release, sales to third parties, and feeding into Warner's own platforms. Global networks consist of basic cable networks like CNN, TNT, TBS, Discovery, HGTV, and The Food Network. The Discovery+ streaming service will remain part of global networks.
60GF Score
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