Warner Bros. DiscoveryMIL:1WBD 29 Gross Margin % is 47.79% as of Mar. 2026, which is 23% below its 10-year median of 61.73. GuruFocus rates MIL:1WBD with a GF Score™ of 29/100 and a GF Value™ of €8.56 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 945 Media - Diversified companies, Warner Bros. Discovery ranks better than 59.68% on this metric.
MIL:1WBD's Gross Margin % is ranked better than 59.68% of 945
companies
in the Media - Diversified industry
Industry Median: 38.99
vs MIL:1WBD: 45.18
Warner Bros. Discovery had a gross margin of 47.79% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Warner Bros. Discovery was -8.30% per year.
Warner Bros. Discovery (MIL:1WBD) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Warner Bros. Discovery had a gross margin of 47.79% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Warner Bros. Discovery Gross Margin % Related Terms
Warner Bros. Discovery Gross Margin % Historical Data
* Premium members only.
The historical data trend for Warner Bros. Discovery's Gross Margin % can be seen below:
* 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.
MIL:1WBD vs LYV, FWONA, FOXA: Gross Margin % Comparison
For the Entertainment subindustry, Warner Bros. Discovery's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Warner Bros. Discovery's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Warner Bros. Discovery's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Warner Bros. Discovery (MIL:1WBD) has a Gross Margin % of 47.79% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Warner Bros. Discovery and its competitors. This is 23% below median its historical median of 61.73. Over the past decade, Warner Bros. Discovery's Gross Margin % has ranged from 39.55 to 65.73. According to the industry distribution chart, Warner Bros. Discovery ranks #381 out of 945 companies in the Media - Diversified industry, placing it in the top 40.3%.
Is Warner Bros. Discovery's Gross Margin % too high?
Warner Bros. Discovery's current Gross Margin % of 47.79% is 23% below median its 10-year median of 61.73. Over the past 10 years, this metric has ranged from a low of 39.55 to a high of 65.73. The Media - Diversified industry median Gross Margin % is 38.99. Warner Bros. Discovery's value of 47.79% is 22.6% above this industry median. Based on the distribution chart, Warner Bros. Discovery ranks #381 out of 945 companies in the Media - Diversified industry, which is above the industry midpoint. Overall, Warner Bros. Discovery has a GF Score™ of 29/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Warner Bros. Discovery's Gross Margin % compare to LYV and FWONA?
According to the Media - Diversified industry distribution chart, Warner Bros. Discovery ranks #381 out of 945 companies for Gross Margin %. This puts Warner Bros. Discovery in the upper half of its industry. The industry median Gross Margin % is 38.99. Warner Bros. Discovery's value of 47.79% is 22.6% above this benchmark. Historically, Warner Bros. Discovery's own Gross Margin % has ranged from 39.55 to 65.73 over the past decade. While the company's 10-year median is 61.73 vs. the industry median of 38.99, Warner Bros. Discovery has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Media - Diversified company?
The median Gross Margin % among Media - Diversified companies is 38.99, based on 945 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Warner Bros. Discovery's current Gross Margin % of 47.79% is 22.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Warner Bros. Discovery and its competitors. For the Media - Diversified industry, the median Gross Margin % is 38.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Warner Bros. Discovery's current Gross Margin % is 47.79%, which is 23% below median its own 10-year median of 61.73. 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?
Based on GuruFocus' analysis, Warner Bros. Discovery (MIL:1WBD) is currently considered Significantly Overvalued. The stock's GF Value™ is €8.56, compared to a current price of €23.60 — trading 175.7% above its estimated fair value. The current Gross Margin % is 47.79%, which is 23% below median its 10-year median of 61.73 and 22.6% above the Media - Diversified industry median of 38.99. Warner Bros. Discovery's overall GF Score™ is 29/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Warner Bros. Discovery (MIL:1WBD), the current Gross Margin % is 47.79% 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 (MIL:1WBD) Overvalued in 2026?
Based on GuruFocus' analysis, Warner Bros. Discovery stock appears to be overvalued.
The current stock price of €23.60 is trading 175.7% above its estimated GF Value™ of €8.56.
GuruFocus considers Warner Bros. Discovery to be Significantly Overvalued.
Key valuation signals for MIL:1WBD:
Gross Margin %: 47.79% (23% below median its 10-year median of 61.73)
GF Value™: €8.56 vs. price of €23.60 (175.7% above fair value)
Industry Position: 22.6% above the Media - Diversified median (#381 of 945)
No single metric tells the full story. See the MIL:1WBD 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.
29GF Score
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