Along with the recent overall market selloff, Discovery (DISCA) has been down significantly. Since the beginning of the year, Discovery has plunged by nearly 35%, underperforming the S&P 500's year-to-date decline of only more than 8%. However, because of the enormous low-cost content library, consistent and growing free cash flow generation, we think Discovery is undervalued at the moment.
COVID-19 did not hit first-quarter operating performance much
In the first quarter of 2020, Discovery's operating performance has not taken a significant hit from the COVID-19 negative impact. Its revenue came in at $2.68