- After beginning trading as an independent company, Warner Bros. Discovery has gone through a rough patch, getting beaten down by almost -25% due to a series of negative catalysts.
- The combination of AT&T's income-oriented investors' selling, a generally negative macroeconomic outlook, but also Netflix causing a sector panic generated significant down-pressure on the stock.
- WBD is currently severely undervalued as it is being sold for 2.16x 2022 FCF/share and 3.30x 2023 FCF/share, as well as 5.05x 2022 EV/EBITDA and 4.20x 2023 EV/EBITDA.
- We maintain our firm belief that the unique combination of the great long-term prospects and unjust short-term valuations could make this one of the best investment opportunities of the decade.
For further details see:
Why Warner Bros. Discovery Crashed