Why Warner Stocks Are A Hold Right Now: Risks And Undervaluation

BalkansCat Warner Bros. Discovery (NASDAQ:WBD) stocks once again traded below $7 after weak Q2 earnings, and although it has already returned to a level close to $7.7, at this level, the company is one of the cheapest telecoms, trading at multiples of 2.8x price-to-FCF (LTM) and 6x EV-to-EBITDA over the next twelve months. This high asymmetry in valuation and other positive factors in earnings, such as the addition of subscribers, were overshadowed by bigger problems. One of them was that the company booked ...