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Warner Bros. Discovery has the Financial Strength Rank of 4.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Warner Bros. Discovery's Interest Coverage for the quarter that ended in Jun. 2026 was 0.73.
Warner Bros. Discovery's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.92.
As of today, Warner Bros. Discovery's Altman Z-Score is 0.74.
Warner Bros. Discovery (XSWX:WBD) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Warner Bros. Discovery has the Financial Strength Rank of 4.
Warner Bros. Discovery Financial Strength Related Terms
XSWX:WBD vs LYV, FWONA, FOXA: Financial Strength Comparison
For the Entertainment subindustry, Warner Bros. Discovery's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Warner Bros. Discovery's Financial Strength distribution charts can be found below:
* The bar in red indicates where Warner Bros. Discovery's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Warner Bros. Discovery has a Z-score of 0.74, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.74 is in distress zone. This implies bankruptcy possibility in the next two years.
* 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 Financial Strength of 4 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Warner Bros. Discovery and its competitors. This is near median its historical median of 4.00. Over the past decade, Warner Bros. Discovery's Financial Strength has ranged from 4.00 to 4.00.
Is Warner Bros. Discovery's Financial Strength too high?
Warner Bros. Discovery's current Financial Strength of 4 is near median its 10-year median of 4.00. Over the past 10 years, this metric has ranged from a low of 4.00 to a high of 4.00. Overall, Warner Bros. Discovery has a GF Score™ of 59/100, reflecting its overall financial health beyond just this single metric.
How does Warner Bros. Discovery's Financial Strength compare to LYV and FWONA?
Warner Bros. Discovery's Financial Strength of 4 can be compared against companies in the Media - Diversified industry. Historically, Warner Bros. Discovery's own Financial Strength has ranged from 4.00 to 4.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Media - Diversified company?
A good Financial Strength depends on the Media - Diversified industry context. However, Financial Strength 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 Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Warner Bros. Discovery and its competitors. Warner Bros. Discovery's current Financial Strength is 4, which is near median its own 10-year median of 4.00. 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 Financial Strength of 4. The stock's GF Value™ is CHF7.54, compared to a current price of CHF22.61 — trading 199.9% above its estimated fair value. The current Financial Strength is 4, which is near median its 10-year median of 4.00. Warner Bros. Discovery's overall GF Score™ is 59/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Warner Bros. Discovery (XSWX:WBD), the current Financial Strength is 4 as of Jun. 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 CHF22.61 is trading 199.9% above its estimated GF Value™ of CHF7.54.
Key valuation signals for XSWX:WBD:
Financial Strength: 4 (near median its 10-year median of 4.00)
GF Value™: CHF7.54 vs. price of CHF22.61 (199.9% 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.
59GF Score
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