Warner Bros. DiscoveryMIL:1WBD 29 Operating Margin % is 6.17% as of Mar. 2026, which is 70% below its 10-year median of 20.41. GuruFocus rates MIL:1WBD with a GF Score™ of 29/100 and a GF Value™ of €8.63 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,023 Media - Diversified companies, Warner Bros. Discovery ranks better than 57.67% on this metric.
The historical rank and industry rank for Warner Bros. Discovery's Operating Margin % or its related term are showing as below:
MIL:1WBD'
s Operating Margin % Range Over the Past 10 Years
Min: -10.34 Med: 20.41 Max: 31.6
Current: 4.71
MIL:1WBD's Operating Margin % is ranked better than 57.67% of 1023
companies
in the Media - Diversified industry
Industry Median: 2.51
vs MIL:1WBD: 4.71
Warner Bros. Discovery's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Warner Bros. Discovery (MIL:1WBD) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Warner Bros. Discovery Operating Margin % Related Terms
Warner Bros. Discovery Operating Margin % Historical Data
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The historical data trend for Warner Bros. Discovery's Operating 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, FOXA, FWONA: Operating Margin % Comparison
For the Entertainment subindustry, Warner Bros. Discovery's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Warner Bros. Discovery's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Warner Bros. Discovery's Operating Margin % falls into.
Warner Bros. Discovery Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Warner Bros. Discovery's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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 (MIL:1WBD) has a Operating Margin % of 6.17% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Warner Bros. Discovery and its competitors. This is 70% below median its historical median of 20.41. According to the industry distribution chart, Warner Bros. Discovery ranks #433 out of 1023 companies in the Media - Diversified industry, placing it in the top 42.3%.
Is Warner Bros. Discovery's Operating Margin % too high?
Warner Bros. Discovery's current Operating Margin % of 6.17% is 70% below median its 10-year median of 20.41. The Media - Diversified industry median Operating Margin % is 2.51. Warner Bros. Discovery's value of 6.17% is 145.8% above this industry median. Based on the distribution chart, Warner Bros. Discovery ranks #433 out of 1023 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 Operating Margin % compare to LYV and FOXA?
According to the Media - Diversified industry distribution chart, Warner Bros. Discovery ranks #433 out of 1023 companies for Operating Margin %. This puts Warner Bros. Discovery in the upper half of its industry. The industry median Operating Margin % is 2.51. Warner Bros. Discovery's value of 6.17% is 145.8% above this benchmark. While the company's 10-year median is 20.41 vs. the industry median of 2.51, 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 Operating Margin % for a Media - Diversified company?
The median Operating Margin % among Media - Diversified companies is 2.51, based on 1,023 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Warner Bros. Discovery's current Operating Margin % of 6.17% is 145.8% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Warner Bros. Discovery and its competitors. For the Media - Diversified industry, the median Operating Margin % is 2.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Warner Bros. Discovery's current Operating Margin % is 6.17%, which is 70% below median its own 10-year median of 20.41. 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 €8.63, compared to a current price of €23.96 — trading 177.6% above its estimated fair value. The current Operating Margin % is 6.17%, which is 70% below median its 10-year median of 20.41 and 145.8% above the Media - Diversified industry median of 2.51. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Warner Bros. Discovery (MIL:1WBD), the current Operating Margin % is 6.17% 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 €23.96 is trading 177.6% above its estimated GF Value™ of €8.63.
GuruFocus considers Warner Bros. Discovery to be Significantly Overvalued.
Key valuation signals for MIL:1WBD:
Operating Margin %: 6.17% (70% below median its 10-year median of 20.41)
GF Value™: €8.63 vs. price of €23.96 (177.6% above fair value)
Industry Position: 145.8% above the Media - Diversified median (#433 of 1023)
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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