Warner Bros. Discovery, Inc. (DISCA) Discounted Free Cash Flow - Perpetuity - Discounting Cash Flows
DISCA
Warner Bros. Discovery, Inc.
DISCA (NASDAQ)

Estimated Value

USD

Market Price USD

* Values are not guaranteed, please do your own
research before making investment decisions.

Discounted Free Cash Flow Model

Discounted Free Cash Flow calculates the value of a share based on the company's estimated future Free Cash Flow figures.

See our GitHub Model Documentation

Interactive Assumptions

Discount Rate

Discount Rate

Discount Rate = Equity Weight * Cost of Equity + Debt Weight * Cost of Debt * (1 - Tax Rate)

Calculated using Weighted Average Cost of Capital (WACC) formula. It represents a firm’s average after-tax cost of capital from all sources, including common stock, preferred stock, bonds, and other forms of debt.

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Cost of Equity

Cost of Equity = Risk Free Rate + Beta * Market Premium

The cost of equity is the theoretical rate of return that an equity investment should generate. It is calculated using the CAPM formula.

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Cost of Debt

Cost of Debt = Interest Expense / Total Debt

The cost of debt is the effective rate that a company pays on its debt, such as bonds and loans.

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Equity & Debt Weights

Debt Weight = Total Debt / (Market Capitalization + Total Debt) = 1 - Equity Weight

The Equity Weight represents the proportion of equity-based financing (Market Capitalization), while the Debt Weight represents the proportion of debt-based financing (Total Debt).


Tax Rate

Tax Rate = Income Tax Expense / Income Before Tax

The overall tax rate paid by the company on its earned income.

↳ Beta

Beta

Beta measures the volatility of a stock's price in relation to the overall stock market. A higher beta indicates greater price fluctuations relative to the market.

↳ Risk Free Rate

Risk-Free Rate

The risk-free rate represents the return an investor expects from an absolutely risk-free investment over a specified time period. By default, it is set to the current yield of the U.S. 10-Year Treasury Bond.

↳ Market Premium

Market Premium

The market risk premium represents the additional return over the risk-free rate that investors expect for taking on the risks associated with equities.

Growth In Perpetuity

Growth in Perpetuity

The rate at which the company's free cash flow is assumed to grow indefinitely. By default, this rate equals the yield of the U.S. 10-Year Treasury Bond.

Historical Years

Historical Years

The number of years of historical data used to calculate averages and trends for analysis.

Projection Years

Projection Years

The number of years into the future for which the analysis projects financial performance and metrics.

Revenue Growth Rate

Revenue Growth Rate

The annual growth rate applied to projected revenue, starting from the second projection year onward.

Operating Cash Flow Margin

Operating Cash Flow Margin

Projected Operating Cash Flow = Projected Revenue * Operating Cash Flow Margin

This margin represents the percentage of revenue used to estimate future Operating Cash Flow.

Capital Expenditure Margin

Capital Expenditure Margin

Projected Free Cash Flow = Projected Operating Cash Flow - Projected Revenue * Capital Expenditure Margin

This margin is used to estimate future capital expenditures as a percentage of revenue, which in turn is subtracted from Operating Cash Flow to calculate Free Cash Flow.

Results

Terminal Value 552.9 Bil. USD
Discounted Terminal Value 381.4 Bil. USD
Sum of Discounted Free Cash Flow 48.65 Bil. USD
Enterprise Value 430.1 Bil. USD
Cash and Equivalents 3.87 Bil. USD
Total Debt 37.43 Bil. USD
Equity Value 396.5 Bil. USD
Shares Outstanding 2.46 Bil. USD
Estimated Value per Share 161.1 USD
Yield of the U.S. 10 Year Treasury Note 4.35%
Average Cash from Operating Activities Margin 20.65%
Average Capital Expenditure Margin 2.44%
Cost of Equity 9.23%
Equity Weight 61.64%
Cost of Debt 5.26%
Debt Weight 38.36%
Tax Rate

Monetary values are in USD

Edit Chart Values 2025 2026 2027 2028 2029

amounts of USD except for #

2024 2025 2026 2027 2028 2029
Revenue 39,321 40,521 50,497 62,929 78,422 97,730
Revenue Growth Rate -4.84% 3.05% 24.62% 24.62% 24.62% 24.62%
Operating Cash Flow 5,375 8,368 10,428 12,995 16,194 20,181
Operating Cash Flow Margin 13.67% 20.65% 20.65% 20.65% 20.65% 20.65%
Capital Expenditure -948 -989.9 -1,234 -1,537 -1,916 -2,388
Capital Expenditure Margin -2.41% -2.44% -2.44% -2.44% -2.44% -2.44%
Free Cash Flow 4,427 7,378 9,194 11,457 14,278 17,794
Free Cash Flow Margin 11.26% 18.21% 18.21% 18.21% 18.21% 18.21%
Compounded Discount Rate
3.67% 11.66% 20.26% 29.56% 39.55%
Discounted Free Cash Flow 4,427 7,117 8,234 9,527 11,021 12,751

amounts of USD except for #

Average LTM 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Revenue 19,738 38,340 39,321 41,321 33,817 12,191 10,671 11,144 10,553 6,873 6,497 6,394
Revenue Growth Rate 24.62% -2.5% -4.84% 22.19% 177.4% 14.24% -4.24% 5.6% 53.54% 5.79% 1.61% 2.06%
Cost of Revenue 10,159 20,144 22,970 24,526 20,442 4,620 3,860 3,819 3,935 2,656 2,432 2,343
Gross Profit 9,580 18,196 16,351 16,795 13,375 7,571 6,811 7,325 6,618 4,217 4,065 4,051
Gross Margin 55.54% 47.46% 41.58% 40.65% 39.55% 62.1% 63.83% 65.73% 62.71% 61.36% 62.57% 63.36%
Operating Income -990.1 -9,955 -10,032 -1,548 -3,582 2,012 2,515 3,009 1,934 713 2,058 1,985
Operating Margin 8.43% -25.97% -25.51% -3.75% -10.59% 16.5% 23.57% 27% 18.33% 10.37% 31.68% 31.04%
Net Income -2,354 -10,936 -11,311 -3,126 -7,297 1,006 1,219 2,069 594 -337 1,194 1,034
Net Margin -1.17% -28.52% -28.77% -7.56% -21.58% 8.25% 11.42% 18.57% 5.63% -4.9% 18.38% 16.17%
Cash from Operating Activities 3,483 5,343 5,375 7,477 4,304 2,798 2,739 3,399 2,576 1,629 1,380 1,294
Cash from Operating Activities Margin 20.65% 13.94% 13.67% 18.09% 12.73% 22.95% 25.67% 30.5% 24.41% 23.7% 21.24% 20.24%
Capital Expenditure -526.5 -1,004 -948 -1,316 -987 -373 -402 -289 -147 -135 -88 -103
Free Cash Flow 2,957 4,339 4,427 6,161 3,317 2,425 2,337 3,110 2,429 1,494 1,292 1,191
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Discounting Cash Flows

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