Price to Book Value (P/BV)
since 2008
Calculation
Warner Bros. Discovery Inc., P/BV, long-term trends, calculation
| P/BV | = | Share price1, 2, 3 | ÷ | Book value per share1 (BVPS) | BVPS1 | = | Total Discovery, Inc. stockholders’ equity1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 24, 2022 | 1.21 | = | 27.73 | ÷ | 22.91 | 22.91 | = | 11,599 | ÷ | 506,245,821 | |
| Feb 22, 2021 | 2.57 | = | 55.29 | ÷ | 21.47 | 21.47 | = | 10,464 | ÷ | 487,334,195 | |
| Feb 27, 2020 | 1.30 | = | 24.67 | ÷ | 18.99 | 18.99 | = | 9,891 | ÷ | 520,922,321 | |
| Mar 1, 2019 | 1.82 | = | 29.08 | ÷ | 16.00 | 16.00 | = | 8,386 | ÷ | 523,978,060 | |
| Feb 28, 2018 | 2.01 | = | 24.32 | ÷ | 12.07 | 12.07 | = | 4,610 | ÷ | 381,907,924 | |
| Feb 14, 2017 | 2.15 | = | 28.53 | ÷ | 13.29 | 13.29 | = | 5,167 | ÷ | 388,656,264 | |
| Feb 18, 2016 | 1.93 | = | 25.62 | ÷ | 13.30 | 13.30 | = | 5,451 | ÷ | 409,799,430 | |
| Feb 19, 2015 | 2.44 | = | 31.10 | ÷ | 12.75 | 12.75 | = | 5,602 | ÷ | 439,252,244 | |
| Feb 20, 2014 | 3.11 | = | 41.22 | ÷ | 13.23 | 13.23 | = | 6,196 | ÷ | 468,226,352 | |
| Feb 14, 2013 | 2.76 | = | 35.42 | ÷ | 12.83 | 12.83 | = | 6,291 | ÷ | 490,510,164 | |
| Feb 17, 2012 | 1.79 | = | 22.61 | ÷ | 12.60 | 12.60 | = | 6,517 | ÷ | 517,025,140 | |
| Feb 18, 2011 | 1.99 | = | 21.96 | ÷ | 11.05 | 11.05 | = | 6,225 | ÷ | 563,128,910 | |
| Feb 22, 2010 | 1.47 | = | 16.05 | ÷ | 10.95 | 10.95 | = | 6,208 | ÷ | 567,053,622 | |
| Feb 26, 2009 | 0.75 | = | 7.38 | ÷ | 9.84 | 9.84 | = | 5,536 | ÷ | 562,521,954 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Warner Bros. Discovery Inc. Annual Report.
An analysis of the Price to Book Value (P/BV) ratio between February 2009 and February 2022 reveals a period of significant valuation volatility contrasted by a steady increase in the underlying book value per share (BVPS). The company transitioned from trading at a discount to its book value in 2009 to trading at varying premiums over the subsequent decade, reflecting shifts in market sentiment and asset valuation.
- Book Value per Share Trajectory
- The book value per share exhibited a consistent upward trend, growing from 9.84 US$ in 2009 to 22.91 US$ by 2022. This steady progression indicates a continuous accumulation of net assets or retained earnings on a per-share basis, providing a strengthening fundamental floor for the stock price over the analyzed period.
- P/BV Expansion and Peak
- A period of aggressive valuation expansion occurred between 2009 and 2014. The P/BV ratio rose from a low of 0.75, where the market valued the company below its accounting book value, to a peak of 3.11 in February 2014. This phase indicates a significant increase in investor confidence and a willingness to pay a higher premium for the company's assets.
- Correction and Stabilization Phase
- Following the 2014 peak, the P/BV ratio entered a general downward trend, fluctuating between 1.82 and 2.44 from 2015 to 2019, before dropping further to 1.30 in February 2020. This contraction suggests a market recalibration of the premium applied to the company's book value despite the simultaneous rise in BVPS.
- Recent Volatility and Divergence
- A sharp divergence is observed between 2021 and 2022. In February 2021, the P/BV ratio spiked to 2.57, driven by a substantial increase in share price to 55.29 US$. However, this was followed by a rapid correction in February 2022, where the P/BV ratio fell to 1.21. This indicates that recent valuation movements have been driven predominantly by share price volatility rather than changes in the fundamental book value.
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Comparison to Competitors
Warner Bros. Discovery Inc., P/BV, long-term trends, comparison to competitors
| Warner Bros. Discovery Inc. | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | Walt Disney Co. | |
|---|---|---|---|---|---|---|
| Feb 24, 2022 | 1.21 | 7.78 | 2.36 | 5.18 | 10.83 | 3.11 |
| Feb 22, 2021 | 2.57 | 6.27 | 2.61 | 5.88 | 21.56 | 3.23 |
| Feb 27, 2020 | 1.30 | 4.94 | 2.43 | 5.91 | 19.86 | 2.98 |
| Mar 1, 2019 | 1.82 | 4.49 | 2.31 | 5.65 | 27.41 | 3.45 |
| Feb 28, 2018 | 2.01 | 4.93 | 2.88 | 7.54 | 34.48 | 3.76 |
| Feb 14, 2017 | 2.15 | 3.99 | 3.31 | 6.39 | 22.89 | 3.61 |
| Feb 18, 2016 | 1.93 | 3.91 | 2.78 | 7.02 | 18.18 | 4.41 |
| Feb 19, 2015 | 2.44 | 3.44 | 2.86 | 6.05 | 14.45 | 3.39 |
| Feb 20, 2014 | 3.11 | 4.57 | 2.84 | 10.31 | 18.15 | 2.68 |
| Feb 14, 2013 | 2.76 | 3.46 | 2.14 | 6.02 | 12.37 | 2.17 |
| Feb 17, 2012 | 1.79 | 3.18 | 1.71 | — | 10.68 | 1.61 |
| Feb 18, 2011 | 1.99 | 4.34 | 1.58 | — | 42.87 | 1.86 |
| Feb 22, 2010 | 1.47 | 4.71 | 1.07 | — | 17.50 | 1.70 |
| Feb 26, 2009 | 0.75 | 3.99 | 0.91 | — | 6.03 | 1.07 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31).
Comparison to Sector (Media & Entertainment)
Warner Bros. Discovery Inc., P/BV, long-term trends, comparison to sector (media & entertainment)
| Warner Bros. Discovery Inc. | Media & Entertainment | |
|---|---|---|
| Feb 24, 2022 | 1.21 | 5.68 |
| Feb 22, 2021 | 2.57 | 5.40 |
| Feb 27, 2020 | 1.30 | 4.58 |
| Mar 1, 2019 | 1.82 | 4.52 |
| Feb 28, 2018 | 2.01 | 5.25 |
| Feb 14, 2017 | 2.15 | 4.46 |
| Feb 18, 2016 | 1.93 | 4.41 |
| Feb 19, 2015 | 2.44 | 3.78 |
| Feb 20, 2014 | 3.11 | 4.24 |
| Feb 14, 2013 | 2.76 | 3.00 |
| Feb 17, 2012 | 1.79 | 2.32 |
| Feb 18, 2011 | 1.99 | 2.75 |
| Feb 22, 2010 | 1.47 | 2.45 |
| Feb 26, 2009 | 0.75 | 1.84 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31).
Comparison to Industry (Communication Services)
Warner Bros. Discovery Inc., P/BV, long-term trends, comparison to industry (communication services)
| Warner Bros. Discovery Inc. | Communication Services | |
|---|---|---|
| Feb 24, 2022 | 1.21 | 4.28 |
| Feb 22, 2021 | 2.57 | 4.19 |
| Feb 27, 2020 | 1.30 | 3.70 |
| Mar 1, 2019 | 1.82 | 3.48 |
| Feb 28, 2018 | 2.01 | 4.14 |
| Feb 14, 2017 | 2.15 | 3.97 |
| Feb 18, 2016 | 1.93 | 3.88 |
| Feb 19, 2015 | 2.44 | 3.70 |
| Feb 20, 2014 | 3.11 | 3.60 |
| Feb 14, 2013 | 2.76 | 2.84 |
| Feb 17, 2012 | 1.79 | 2.18 |
| Feb 18, 2011 | 1.99 | 2.24 |
| Feb 22, 2010 | 1.47 | 1.97 |
| Feb 26, 2009 | 0.75 | 1.70 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31).