Enterprise Value (EV)
Current Enterprise Value (EV)
Warner Bros. Discovery Inc., current enterprise value calculation
| Current share price (P) | $10.43 |
| No. shares of common stock outstanding | 2,428,396,015 |
| US$ in millions | |
| Common equity (market value)1 | 25,328) |
| Add: Noncontrolling interests (per books) | 1,434) |
| Total equity | 26,762) |
| Add: Finance lease liabilities, current (per books) | 58) |
| Add: Current portion of debt (per books) | 339) |
| Add: Noncurrent portion of debt (per books) | 14,420) |
| Add: Finance lease liabilities, noncurrent (per books) | 197) |
| Total equity and debt | 41,776) |
| Less: Cash and cash equivalents | 3,905) |
| Enterprise value (EV) | 37,871) |
Based on: 10-K (reporting date: 2021-12-31).
1 Common equity (market value) = Share price × No. shares of common stock outstanding
= 10.43 × 2,428,396,015
Historical Enterprise Value (EV)
Warner Bros. Discovery Inc., EV calculation
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).
1 Data adjusted for splits and stock dividends.
2 Closing price as at the filing date of Warner Bros. Discovery Inc. Annual Report.
3 2021 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 27.73 × 506,245,821
A period of significant volatility is observed in the valuation metrics from 2017 through 2021. The Enterprise Value (EV) and market capitalization experienced a general upward trajectory that peaked in 2020, followed by a sharp contraction in 2021.
- Enterprise Value (EV) Analysis
- Enterprise Value exhibited substantial growth from US$ 16,764 million in 2017 to a peak of US$ 42,035 million in 2020. This represents a significant expansion in the overall value of the business operations. However, a sharp correction occurred in 2021, with the EV falling to US$ 26,581 million, erasing a considerable portion of the gains achieved over the preceding three years.
- Equity Market Valuation Trends
- The market value of common equity closely mirrored the movement of the Enterprise Value. After an initial rise to US$ 15,237 million in 2018 and a slight dip in 2019, the market value surged to its highest point of US$ 26,945 million in 2020. This was followed by a precipitous decline to US$ 14,038 million in 2021, indicating a substantial reduction in shareholder market valuation.
- Capital Structure and Debt Correlation
- Total equity and debt followed a similar pattern, increasing from US$ 24,073 million in 2017 to US$ 44,126 million in 2020. The alignment of the peaks in total equity and debt with the peaks in Enterprise Value suggests that the valuation surge in 2020 was supported by an increase in the total capital base. The subsequent decline in 2021 to US$ 30,486 million reflects a general contraction in the balance sheet's total funded value.
- Equity Composition Analysis
- The relationship between common equity market value and total equity remained relatively tight, with both metrics peaking simultaneously in 2020. The proximity of these figures suggests that the valuation changes were driven largely by market sentiment and capital adjustments rather than diverging book and market values.
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