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Warner Bros. Discovery, Inc. Series A Common Stock (WBD) — WACC Analysis

WACC Breakdown

Warner Bros. Discovery, Inc. Series A Common Stock (WBD) has a weighted average cost of capital (WACC) of 9.3%. The cost of equity is 10.1%, derived from a beta of 1.39 and a risk-free rate of 4.8%. The after-tax cost of debt is 7.4%. The capital structure is 70.0% equity and 30.0% debt.

Interpretation

A WACC of 9.3% is moderate, reflecting the market's balanced risk assessment of Warner Bros. Discovery, Inc. Series A Common Stock.

Investors can compare WBD's WACC of 9.3% against industry peers to gauge its relative financing costs. A beta of 1.39 reflects the stock's volatility relative to the broader market.

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VALUATION

WBD WACC: 9.29% for Warner Bros. Discovery, Inc. Series A Common Stock

Current inputs imply a 10.12% cost of equity and a 7.36% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Warner Bros. Discovery, Inc. Series A Common Stock Common Stock (WBD) WACC Results
Weighted Average Cost of Capital
9.29%
Cost of Equity
10.12%
Risk-Free Rate4.79%
Beta1.39
Market Risk Premium4.23%
Cost of Debt
7.36%
Pre-Tax Cost of Debt7.36%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 69.97%($71.13B)
Debt: 30.03%($30.53B)
Equity Component
7.08%
69.97% × 10.12%
Debt Component
2.21%
30.03% × 7.36%

Warner Bros. Discovery, Inc. Series A Common Stock (WBD) WACC in context

Warner Bros. Discovery, Inc. Series A Common Stock (WBD) currently screens with an estimated WACC of 9.29%. That blends a 10.12% cost of equity, a 7.36% pre-tax cost of debt, and a 69.97% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What WBD WACC implies

A 9.29% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates WBD

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.39 and equity accounts for 69.97% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.