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.
The financial trajectory between February 2009 and February 2022 is characterized by significant volatility in share pricing and fluctuating operating efficiency, which together drove inconsistent Price to Operating Profit (P/OP) multiples.
- Share Price Trends
- A substantial growth phase is observed from 2009 to 2014, with the share price ascending from US$ 7.38 to a peak of US$ 41.22. This was followed by a period of general decline and stabilization, interrupted by a sharp spike to US$ 55.29 in February 2021, before correcting to US$ 27.73 by February 2022.
- Operating Profit Performance
- Operating profit per share exhibited a consistent upward trend from US$ 1.88 in 2009 to US$ 5.30 in 2017. A notable anomaly occurred in February 2018, where profit per share dropped sharply to US$ 1.87. Recovery followed, reaching a peak of US$ 5.78 in February 2020, before entering a gradual decline to US$ 3.97 by February 2022.
- Price to Operating Profit (P/OP) Analysis
- The P/OP ratio fluctuated significantly, reflecting varying market sentiment and operational performance. The ratio rose from 3.93 in 2009 to a mid-term high of 9.66 in 2014. The highest multiple of 13.03 was recorded in February 2018, a direct result of the collapse in operating profit per share during that period. A subsequent low of 4.27 was observed in February 2020, coinciding with peak operating profits and a depressed share price. The ratio experienced another surge to 10.71 in February 2021, driven by the rapid increase in share price, before settling at 6.98 in February 2022.
Overall, the data indicates that the P/OP ratio has been more heavily influenced by episodic volatility in share prices and singular drops in operating profit than by a steady long-term valuation trend.
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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 | 57.83 |
| Mar 1, 2019 | 7.88 | 30.27 | 8.71 | 19.10 | 89.46 |
| Feb 28, 2018 | 13.03 | 28.74 | 10.98 | 27.76 | 147.26 |
| Feb 14, 2017 | 5.39 | 23.36 | 10.61 | 30.46 | 161.49 |
| Feb 18, 2016 | 5.29 | 24.29 | 9.07 | 49.89 | 132.14 |
| Feb 19, 2015 | 6.63 | 21.78 | 10.12 | 43.72 | 66.68 |
| Feb 20, 2014 | 9.66 | 28.56 | 10.62 | 56.90 | 105.97 |
| Feb 14, 2013 | 9.37 | 19.47 | 8.69 | 131.64 | 184.25 |
| Feb 17, 2012 | 6.50 | 15.73 | 7.53 | — | 18.26 |
| Feb 18, 2011 | 9.09 | 19.34 | 8.79 | — | 43.86 |
| Feb 22, 2010 | 7.37 | 20.40 | 6.35 | — | 18.16 |
| Feb 26, 2009 | 3.93 | 17.00 | 5.49 | — | 17.24 |
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).