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Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
Warner Bros. Discovery's Sloan Ratio for the quarter that ended in Mar. 2026 was -4.12%.
As of Mar. 2026, Warner Bros. Discovery has a Sloan Ratio of -4.12%, indicating the company is in the safe zone and there is no funny business with accruals.
Warner Bros. Discovery (XSWX:WBD) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Mar. 2026, Warner Bros. Discovery has a Sloan Ratio of -4.12%, indicating the company is in the safe zone and there is no funny business with accruals.
Warner Bros. Discovery Sloan Ratio % Related Terms
Warner Bros. Discovery Sloan Ratio % 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: Sloan Ratio % Comparison
For the Entertainment subindustry, Warner Bros. Discovery's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % 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 Sloan Ratio % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Warner Bros. Discovery's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Warner Bros. Discovery's Sloan Ratio % falls into.
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
Warner Bros. Discovery's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Warner Bros. Discovery's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 1284.856 (Jun. 2025 ) + -117.823 (Sep. 2025 ) + -200.819 (Dec. 2025 ) + -2295.767 (Mar. 2026 ) = CHF-1,330 Mil.
Warner Bros. Discovery's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 799.376 (Jun. 2025 ) + 779.382 (Sep. 2025 ) + 1437.608 (Dec. 2025 ) + -163.758 (Mar. 2026 ) = CHF2,853 Mil.
Warner Bros. Discovery's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -191.915 (Jun. 2025 ) + -262.713 (Sep. 2025 ) + -333.104 (Dec. 2025 ) + -222.019 (Mar. 2026 ) = CHF-1,010 Mil.
* 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 Sloan Ratio % of -4.12% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Warner Bros. Discovery and its competitors.
Is Warner Bros. Discovery's Sloan Ratio % too high?
Warner Bros. Discovery's current Sloan Ratio % is -4.12%. 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 Sloan Ratio % compare to LYV and FWONA?
Warner Bros. Discovery's Sloan Ratio % of -4.12% can be compared against companies in the Media - Diversified industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Media - Diversified company?
A good Sloan Ratio % depends on the Media - Diversified industry context. However, Sloan Ratio % 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 Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Warner Bros. Discovery and its competitors. Warner Bros. Discovery's current Sloan Ratio % is -4.12%. 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 Sloan Ratio % of -4.12%. The stock's GF Value™ is CHF8.08, compared to a current price of CHF21.43 — trading 165.2% above its estimated fair value. The current Sloan Ratio % is -4.12%. 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 Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Warner Bros. Discovery (XSWX:WBD), the current Sloan Ratio % is -4.12% 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 CHF21.43 is trading 165.2% above its estimated GF Value™ of CHF8.08.
Key valuation signals for XSWX:WBD:
Sloan Ratio %: -4.12%
GF Value™: CHF8.08 vs. price of CHF21.43 (165.2% 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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