Price to Sales (P/S)
since 2008
Calculation
Warner Bros. Discovery Inc., P/S, long-term trends, calculation
| P/S | = | Share price1, 2, 3 | ÷ | Sales per share1 | Sales per share1 | = | Revenues1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 24, 2022 | 1.15 | = | 27.73 | ÷ | 24.08 | 24.08 | = | 12,191 | ÷ | 506,245,821 | |
| Feb 22, 2021 | 2.53 | = | 55.29 | ÷ | 21.90 | 21.90 | = | 10,671 | ÷ | 487,334,195 | |
| Feb 27, 2020 | 1.15 | = | 24.67 | ÷ | 21.39 | 21.39 | = | 11,144 | ÷ | 520,922,321 | |
| Mar 1, 2019 | 1.44 | = | 29.08 | ÷ | 20.14 | 20.14 | = | 10,553 | ÷ | 523,978,060 | |
| Feb 28, 2018 | 1.35 | = | 24.32 | ÷ | 18.00 | 18.00 | = | 6,873 | ÷ | 381,907,924 | |
| Feb 14, 2017 | 1.71 | = | 28.53 | ÷ | 16.72 | 16.72 | = | 6,497 | ÷ | 388,656,264 | |
| Feb 18, 2016 | 1.64 | = | 25.62 | ÷ | 15.60 | 15.60 | = | 6,394 | ÷ | 409,799,430 | |
| Feb 19, 2015 | 2.18 | = | 31.10 | ÷ | 14.26 | 14.26 | = | 6,265 | ÷ | 439,252,244 | |
| Feb 20, 2014 | 3.49 | = | 41.22 | ÷ | 11.82 | 11.82 | = | 5,535 | ÷ | 468,226,352 | |
| Feb 14, 2013 | 3.87 | = | 35.42 | ÷ | 9.15 | 9.15 | = | 4,487 | ÷ | 490,510,164 | |
| Feb 17, 2012 | 2.76 | = | 22.61 | ÷ | 8.19 | 8.19 | = | 4,235 | ÷ | 517,025,140 | |
| Feb 18, 2011 | 3.28 | = | 21.96 | ÷ | 6.70 | 6.70 | = | 3,773 | ÷ | 563,128,910 | |
| Feb 22, 2010 | 2.59 | = | 16.05 | ÷ | 6.20 | 6.20 | = | 3,516 | ÷ | 567,053,622 | |
| Feb 26, 2009 | 1.21 | = | 7.38 | ÷ | 6.12 | 6.12 | = | 3,443 | ÷ | 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 data reveals a divergence between steady revenue growth per share and significant volatility in market valuation as measured by the Price to Sales (P/S) ratio from 2009 to 2022.
- Sales per Share Performance
- A consistent upward trajectory is observed in sales per share, which grew from 6.12 US$ in February 2009 to 24.08 US$ by February 2022. This represents a continuous expansion of revenue generation on a per-share basis throughout the entire period analyzed, with no annual decreases recorded.
- Price to Sales (P/S) Ratio Trends
- The P/S ratio experienced three distinct phases. An initial growth phase occurred between 2009 and 2013, where the ratio climbed from 1.21 to a peak of 3.87. This was followed by a prolonged contraction phase from 2014 to 2020, during which the ratio declined to 1.15, despite the simultaneous increase in sales per share. A brief recovery spike occurred in February 2021, reaching 2.53, before reverting to 1.15 in February 2022.
- Share Price Volatility
- Share price fluctuations heavily influenced the P/S ratio. While the price rose from 7.38 US$ in 2009 to a high of 41.22 US$ in 2014, it exhibited significant instability in later years. A notable peak occurred in February 2021 at 55.29 US$, which drove the temporary surge in the P/S ratio. By February 2022, the share price corrected to 27.73 US$, aligning the valuation ratio with previous lows.
- Valuation Analysis
- The disconnect between the linear growth of sales per share and the fluctuating P/S ratio indicates that market sentiment and external valuation pressures played a more dominant role in determining the share price than organic revenue growth. The return to a P/S ratio of 1.15 in 2022 suggests a valuation normalization or a decrease in the premium the market is willing to pay for the company's revenue stream compared to the 2013 peak.
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Comparison to Competitors
Warner Bros. Discovery Inc., P/S, 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 | 1.15 | 7.60 | 1.95 | 5.49 | 5.78 | 4.08 |
| Feb 22, 2021 | 2.53 | 7.65 | 2.28 | 8.78 | 9.54 | 4.13 |
| Feb 27, 2020 | 1.15 | 6.14 | 1.84 | 8.45 | 7.47 | 3.81 |
| Mar 1, 2019 | 1.44 | 5.82 | 1.75 | 8.52 | 9.09 | 2.83 |
| Feb 28, 2018 | 1.35 | 6.78 | 2.34 | 13.80 | 10.56 | 2.81 |
| Feb 14, 2017 | 1.71 | 6.14 | 2.22 | 13.70 | 6.95 | 2.81 |
| Feb 18, 2016 | 1.64 | 6.27 | 1.95 | 17.32 | 5.96 | 3.74 |
| Feb 19, 2015 | 2.18 | 5.44 | 2.19 | 17.51 | 4.88 | 3.12 |
| Feb 20, 2014 | 3.49 | 6.67 | 2.23 | 20.27 | 5.53 | 2.70 |
| Feb 14, 2013 | 3.87 | 4.95 | 1.69 | 13.92 | 2.55 | 2.04 |
| Feb 17, 2012 | 2.76 | 4.87 | 1.44 | — | 2.14 | 1.47 |
| Feb 18, 2011 | 3.28 | 6.85 | 1.85 | — | 5.75 | 1.83 |
| Feb 22, 2010 | 2.59 | 7.17 | 1.28 | — | 2.09 | 1.59 |
| Feb 26, 2009 | 1.21 | 5.17 | 1.08 | — | 1.54 | 0.92 |
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/S, long-term trends, comparison to sector (media & entertainment)
| Warner Bros. Discovery Inc. | Media & Entertainment | |
|---|---|---|
| Feb 24, 2022 | 1.15 | 5.56 |
| Feb 22, 2021 | 2.53 | 6.26 |
| Feb 27, 2020 | 1.15 | 5.12 |
| Mar 1, 2019 | 1.44 | 4.83 |
| Feb 28, 2018 | 1.35 | 5.91 |
| Feb 14, 2017 | 1.71 | 5.06 |
| Feb 18, 2016 | 1.64 | 5.13 |
| Feb 19, 2015 | 2.18 | 4.50 |
| Feb 20, 2014 | 3.49 | 4.67 |
| Feb 14, 2013 | 3.87 | 3.18 |
| Feb 17, 2012 | 2.76 | 2.41 |
| Feb 18, 2011 | 3.28 | 3.29 |
| Feb 22, 2010 | 2.59 | 2.84 |
| Feb 26, 2009 | 1.21 | 1.96 |
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/S, long-term trends, comparison to industry (communication services)
| Warner Bros. Discovery Inc. | Communication Services | |
|---|---|---|
| Feb 24, 2022 | 1.15 | 3.94 |
| Feb 22, 2021 | 2.53 | 4.19 |
| Feb 27, 2020 | 1.15 | 3.54 |
| Mar 1, 2019 | 1.44 | 3.20 |
| Feb 28, 2018 | 1.35 | 3.59 |
| Feb 14, 2017 | 1.71 | 3.11 |
| Feb 18, 2016 | 1.64 | 3.03 |
| Feb 19, 2015 | 2.18 | 2.68 |
| Feb 20, 2014 | 3.49 | 2.72 |
| Feb 14, 2013 | 3.87 | 2.08 |
| Feb 17, 2012 | 2.76 | 1.65 |
| Feb 18, 2011 | 3.28 | 1.84 |
| Feb 22, 2010 | 2.59 | 1.54 |
| Feb 26, 2009 | 1.21 | 1.29 |
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).