Price to Operating Profit (P/OP)
since 2008
Calculation
Warner Bros. Discovery Inc., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating income1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 24, 2022 | 6.98 | = | 27.73 | ÷ | 3.97 | 3.97 | = | 2,012 | ÷ | 506,245,821 | |
| Feb 22, 2021 | 10.71 | = | 55.29 | ÷ | 5.16 | 5.16 | = | 2,515 | ÷ | 487,334,195 | |
| Feb 27, 2020 | 4.27 | = | 24.67 | ÷ | 5.78 | 5.78 | = | 3,009 | ÷ | 520,922,321 | |
| Mar 1, 2019 | 7.88 | = | 29.08 | ÷ | 3.69 | 3.69 | = | 1,934 | ÷ | 523,978,060 | |
| Feb 28, 2018 | 13.03 | = | 24.32 | ÷ | 1.87 | 1.87 | = | 713 | ÷ | 381,907,924 | |
| Feb 14, 2017 | 5.39 | = | 28.53 | ÷ | 5.30 | 5.30 | = | 2,058 | ÷ | 388,656,264 | |
| Feb 18, 2016 | 5.29 | = | 25.62 | ÷ | 4.84 | 4.84 | = | 1,985 | ÷ | 409,799,430 | |
| Feb 19, 2015 | 6.63 | = | 31.10 | ÷ | 4.69 | 4.69 | = | 2,061 | ÷ | 439,252,244 | |
| Feb 20, 2014 | 9.66 | = | 41.22 | ÷ | 4.27 | 4.27 | = | 1,998 | ÷ | 468,226,352 | |
| Feb 14, 2013 | 9.37 | = | 35.42 | ÷ | 3.78 | 3.78 | = | 1,855 | ÷ | 490,510,164 | |
| Feb 17, 2012 | 6.50 | = | 22.61 | ÷ | 3.48 | 3.48 | = | 1,799 | ÷ | 517,025,140 | |
| Feb 18, 2011 | 9.09 | = | 21.96 | ÷ | 2.42 | 2.42 | = | 1,360 | ÷ | 563,128,910 | |
| Feb 22, 2010 | 7.37 | = | 16.05 | ÷ | 2.18 | 2.18 | = | 1,235 | ÷ | 567,053,622 | |
| Feb 26, 2009 | 3.93 | = | 7.38 | ÷ | 1.88 | 1.88 | = | 1,057 | ÷ | 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.
- Share Price Trends
- The share price demonstrated considerable volatility over the analyzed period. Starting at $7.38 in early 2009, it increased sharply to a peak of $41.22 in early 2014. After this high, the price experienced a decline and fluctuations, dropping to $24.32 in 2018, rising again sharply to $55.29 in 2021, before falling to $27.73 in 2022. Overall, the share price showed periods of rapid appreciation followed by notable declines, indicating a cyclical pattern with significant market sensitivity.
- Operating Profit per Share (OPPS) Trends
- Operating profit per share exhibited a general upward trend throughout the period, starting at $1.88 in 2009 and rising steadily to $5.30 in 2017. There was a notable drop to $1.87 in 2018, which suggests an unusual event affecting operating profitability that year. Subsequent years saw a recovery and further growth, peaking at $5.78 in 2020, then declining slightly to $3.97 by 2022. This pattern indicates mostly improving profitability with some volatility, particularly around 2018 and 2022.
- Price to Operating Profit Ratio (P/OP) Trends
- The P/OP ratio, indicating the valuation relative to operating profit per share, showed considerable fluctuations. Starting at a low of 3.93 in 2009, the ratio generally increased, reaching peaks around 9.66 in 2014 and 13.03 in 2018. These peaks suggest periods when the market price was high relative to operating profit, possibly reflecting optimistic investor sentiment or overvaluation. The ratio fell significantly to 4.27 in 2020, signaling a more discounted market price relative to earnings at that time. Afterwards, it climbed again to 10.71 in 2021 before declining to 6.98 in 2022, indicating ongoing volatility in valuation levels in response to changing profitability and market conditions.
- Summary of Key Insights
- The data reflects a company experiencing cyclical market valuation changes with high volatility in share price and P/OP ratio over the 14-year period. Operating profit per share generally improved over time with exceptions in 2018 and 2022, highlighting occasional profitability challenges. Market valuation as expressed by the P/OP ratio displayed swings that might be linked to market sentiment or external factors impacting investor confidence. The combination of rising operating profits with fluctuating market prices suggests external factors heavily influenced investor perceptions beyond fundamental profitability alone.
Comparison to Competitors
Warner Bros. Discovery Inc., P/OP, long-term trends, comparison to competitors
| Warner Bros. Discovery Inc. | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | |
|---|---|---|---|---|---|
| Feb 24, 2022 | 6.98 | 24.86 | 10.89 | 13.84 | 27.71 |
| Feb 22, 2021 | 10.71 | 33.85 | 13.47 | 23.10 | 52.02 |
| Feb 27, 2020 | 4.27 | 29.05 | 9.51 | 24.90 | 57.82 |
| Mar 1, 2019 | 7.88 | 30.27 | 8.71 | 19.10 | 89.46 |
| Feb 28, 2018 | 13.03 | 28.74 | 10.98 | 27.76 | 147.25 |
| Feb 14, 2017 | 5.39 | 23.36 | 10.61 | 30.46 | 161.44 |
| Feb 18, 2016 | 5.29 | 24.29 | 9.07 | 49.89 | 132.15 |
| Feb 19, 2015 | 6.63 | 21.78 | 10.12 | 43.72 | 66.68 |
| Feb 20, 2014 | 9.66 | 28.56 | 10.62 | 56.90 | 105.92 |
| Feb 14, 2013 | 9.37 | 19.47 | 8.69 | 131.64 | 184.56 |
| Feb 17, 2012 | 6.50 | 15.73 | 7.53 | — | 18.26 |
| Feb 18, 2011 | 9.09 | 19.34 | 8.79 | — | 43.91 |
| Feb 22, 2010 | 7.37 | 20.40 | 6.35 | — | 18.20 |
| Feb 26, 2009 | 3.93 | 17.00 | 5.49 | — | 17.28 |
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).