Warner Bros. Discovery Inc., FCFE calculation

US$ in millions

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net income (loss) available to Discovery, Inc.	1,006)	1,219)	2,069)	594)	(337)
Net income attributable to noncontrolling interests and redeemable noncontrolling interests	191)	136)	144)	87)	24)
Net noncash charges	4,838)	4,483)	4,159)	4,815)	3,837)
Changes in operating assets and liabilities, net of acquisitions and dispositions	(3,237)	(3,099)	(2,973)	(2,920)	(1,895)
Cash provided by operating activities	2,798)	2,739)	3,399)	2,576)	1,629)
Purchases of property and equipment	(373)	(402)	(289)	(147)	(135)
Principal repayments of debt, including premiums to par value and discount payment	(574)	(2,193)	(2,658)	(16)	(650)
Borrowings from debt, net of discount and issuance costs	—)	1,979)	1,479)	—)	7,488)
Principal repayments of revolving credit facility	—)	(500)	(225)	(200)	(475)
Borrowings under revolving credit facility	—)	500)	—)	—)	350)
Borrowings under term loan facilities	—)	—)	—)	2,000)	—)
Principal repayments of term loans	—)	—)	—)	(2,000)	—)
Free cash flow to equity (FCFE)	1,851)	2,123)	1,706)	2,213)	8,207)

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).

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Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to Warner Bros. Discovery Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	Warner Bros. Discovery Inc. FCFE increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.

Warner Bros. Discovery Inc., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	2,428,396,015
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	1,851)
FCFE per share	0.76
Current share price (P)	10.43
Valuation Ratio
P/FCFE	13.68
Benchmarks
P/FCFE, Competitors¹
Alphabet Inc.	30.53
Comcast Corp.	10.53
Meta Platforms Inc.	22.95
Netflix Inc.	37.15
Walt Disney Co.	68.61
P/FCFE, Sector
Media & Entertainment	35.44
P/FCFE, Industry
Communication Services	30.35

Based on: 10-K (reporting date: 2021-12-31).

¹ Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Warner Bros. Discovery Inc., historical P/FCFE calculation, comparison to benchmarks

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
No. shares of common stock outstanding¹	506,245,821	487,334,195	520,922,321	523,978,060	381,907,924
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	1,851)	2,123)	1,706)	2,213)	8,207)
FCFE per share³	3.66	4.36	3.27	4.22	21.49
Share price^1, 4	27.73	55.29	24.67	29.08	24.32
Valuation Ratio
P/FCFE⁵	7.58	12.69	7.53	6.89	1.13
Benchmarks
P/FCFE, Competitors⁶
Alphabet Inc.	29.75	26.58	32.39	—	—
Comcast Corp.	27.57	18.17	64.70	—	—
Meta Platforms Inc.	16.84	32.77	28.91	—	—
Netflix Inc.	—	81.38	116.48	—	—
Walt Disney Co.	—	18.20	55.35	23.22	—
P/FCFE, Sector
Media & Entertainment	29.77	27.24	36.47	—	—
P/FCFE, Industry
Communication Services	26.52	20.51	33.69	—	—

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 See details »

³ 2021 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 1,851,000,000 ÷ 506,245,821 = 3.66

⁴ Closing price as at the filing date of Warner Bros. Discovery Inc. Annual Report.

⁵ 2021 Calculation
P/FCFE = Share price ÷ FCFE per share
= 27.73 ÷ 3.66 = 7.58

⁶ Click competitor name to see calculations.

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Valuation ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders’ equity.	Warner Bros. Discovery Inc. P/FCFE ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.

Warner Bros. Discovery Inc. (NASDAQ:WBD)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical