Warner Bros Profit Margin vs. Price To Earning
| WBD Stock | USD 10.38 0.27 2.67% |
Warner Bros Net Profit Margin |
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| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.46 | 0.4065 |
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For Warner Bros profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Warner Bros to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Warner Bros Discovery utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Warner Bros's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Warner Bros Discovery over time as well as its relative position and ranking within its peers.
Warner |
Is Interactive Home Entertainment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Warner Bros. If investors know Warner will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Warner Bros listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 2.267 | Earnings Share (4.58) | Revenue Per Share 16.182 | Quarterly Revenue Growth (0.04) | Return On Assets (0) |
The market value of Warner Bros Discovery is measured differently than its book value, which is the value of Warner that is recorded on the company's balance sheet. Investors also form their own opinion of Warner Bros' value that differs from its market value or its book value, called intrinsic value, which is Warner Bros' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Warner Bros' market value can be influenced by many factors that don't directly affect Warner Bros' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Warner Bros' value and its price as these two are different measures arrived at by different means. Investors typically determine if Warner Bros is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Warner Bros' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Warner Bros Discovery Price To Earning vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Warner Bros's current stock value. Our valuation model uses many indicators to compare Warner Bros value to that of its competitors to determine the firm's financial worth. Warner Bros Discovery is rated below average in profit margin category among its peers. It is rated below average in price to earning category among its peers . At present, Warner Bros' Net Loss is projected to increase slightly based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value Warner Bros by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Warner Price To Earning vs. Profit Margin
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Warner Bros |
| = | (0.28) % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Warner Bros |
| = | 6.34 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Warner Price To Earning Comparison
Warner Bros is currently under evaluation in price to earning category among its peers.
Warner Bros Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Warner Bros, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Warner Bros will eventually generate negative long term returns. The profitability progress is the general direction of Warner Bros' change in net profit over the period of time. It can combine multiple indicators of Warner Bros, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -741 M | -704 M | |
| Operating Income | -1.5 B | -1.5 B | |
| Net Loss | -3.1 B | -3 B | |
| Income Tax Expense | -784 M | -744.8 M | |
| Income Before Tax | -3.9 B | -3.7 B | |
| Total Other Income Expense Net | -2.3 B | -2.2 B | |
| Interest Income | 179 M | 170.1 M | |
| Net Loss | -6.6 B | -6.3 B | |
| Net Interest Income | -2 B | -1.9 B | |
| Net Loss | -3.1 B | -2.9 B | |
| Non Operating Income Net Other | 215.1 M | 132.6 M | |
| Change To Netincome | 291.6 M | 230.9 M | |
| Net Loss | (1.28) | (1.22) | |
| Income Quality | (2.39) | (2.27) | |
| Net Income Per E B T | 0.81 | 0.77 |
Warner Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Warner Bros. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Warner Bros position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Warner Bros' important profitability drivers and their relationship over time.
Use Warner Bros in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Warner Bros position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Warner Bros will appreciate offsetting losses from the drop in the long position's value.Warner Bros Pair Trading
Warner Bros Discovery Pair Trading Analysis
The ability to find closely correlated positions to Warner Bros could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Warner Bros when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Warner Bros - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Warner Bros Discovery to buy it.
The correlation of Warner Bros is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Warner Bros moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Warner Bros Discovery moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Warner Bros can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Warner Bros position
In addition to having Warner Bros in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Fabricated Products theme has 11 constituents at this time.
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To fully project Warner Bros' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Warner Bros Discovery at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Warner Bros' income statement, its balance sheet, and the statement of cash flows.