Does Warner Bros. Discovery, Inc. have an economic moat?

Based on its FY2025 SEC filings, the Moat Index scores Warner Bros. Discovery, Inc. (WBD) 46.2 out of 100 — a Shallow moat. The four filters behind that score (each 0–100): pricing power 100, returns on capital 7, balance-sheet safety 0, capital discipline 70.

Is WBD stock trading below its intrinsic value?

Against a deliberately conservative owner-earnings model (9% discount rate, 4% assumed growth, capped at 4%), estimated intrinsic value is $16.08 per share versus a recent price of $26.87 — 67% above value. This is an educational estimate computed from primary SEC filings, not investment advice.

How has WBD's Moat Score changed over time?

The record logs 3 readings since Jul 17, 2026; the latest reads 46.2 out of 100 (shallow moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

The Moat Index

Warner Bros. Discovery, Inc.

WBD · Communications · $66.6B mkt cap · FY2025 filings · Shallow moat ·

Doesn't clear the bar

Shallow moat

The four filters

Pricing power100

Median gross margin 62.6% over 3y, very stable.

Returns on capital7

Median ROIC 5.0%, above the 9% hurdle in 20% of years.

Balance-sheet safety0

Net debt/EBITDA 4.4x, interest coverage 0x.

Capital discipline70

Owner earnings +15.4%/yr, share count growing (dilution).

Margin of safety

Above valueOn sale

67% above value

Owner earnings (normalized): $2.2B
Est. intrinsic value / share: $16.08
Recent price: $26.87
Discount to value: 67% above value

Conservative model: 9% discount rate, 4% assumed growth (capped at 4%), maintenance capex ≈ min(capex, D&A).

20 years of fundamentals

The business, in plain English

Across the filed record, revenue grew from $76.0M (FY2007) to $37.3B (FY2025) — about 41.1% a year compounded over 18 years.

It earned 0.8% on invested capital in FY2025, with a median of 8.3% across 19 filed years. The Returns on Capital filter above scores it 7/100.

The balance sheet carried $32.6B of total debt in FY2025 against $5.2B of owner earnings — roughly 6.3 years of owner earnings to retire it all. Balance-Sheet Safety scores it 0/100.

Put together: Pricing Power is the strongest of the four filters (100/100) and Balance-Sheet Safety the weakest (0/100), which is how WBD lands at 46/100 — a Shallow moat.

This breakdown is generated from the filed numbers and sub-scores above — no outside narrative, no estimates. Where a filing doesn’t disclose an input, the sentence that would need it is omitted instead of guessed.

RevenueSales, as filed$37.3B FY2025

Gross marginRevenue kept after cost of goods62.7% FY2018

Return on invested capitalOperating profit on the capital employed0.8% FY2025

Owner earningsCash an owner could take out$5.2B FY2025

Gaps in a line mean that item isn’t in WBD’s filings for that year — the series is never interpolated or estimated. The Table view lists every filed value, including operating and net margins, total debt, and share count.

Moat Score history

Moat Score over timeLast scored reading of each day, on the 0–100 scale46.2 / 100

Score history begins Jul 17, 2026 — the record builds from here and can’t be backfilled.

Tier changesSame-methodology crossings of the Wide / Narrow / Shallow bars

None yet — WBD has read Shallow moat for every logged capture since Jul 17, 2026.

Scores are logged append-only and never overwritten — this record can’t be backfilled, which is exactly why it’s worth keeping.

Communications context

#23 of 56 scored Communications companies, ranked by Moat Score.

Nearest peers by Moat Score

#21TDS TELEPHONE AND DATA SYSTEMS, INC.47.6 out of 100, Shallow moatShallow moat
#22RSVR Reservoir Media, Inc.46.9 out of 100, Shallow moatShallow moat
#24KVHI KVH Industries, Inc.45.8 out of 100, Shallow moatShallow moat
#25GAIA GAIA, INC45.8 out of 100, Shallow moatShallow moat

Compare WBD with its nearest peers →All Communications companies on the Index →

Common questions about WBD

Does Warner Bros. Discovery, Inc. have an economic moat?: Based on its FY2025 SEC filings, the Moat Index scores Warner Bros. Discovery, Inc. (WBD) 46.2 out of 100 — a Shallow moat. The four filters behind that score (each 0–100): pricing power 100, returns on capital 7, balance-sheet safety 0, capital discipline 70.
Is WBD stock trading below its intrinsic value?: Against a deliberately conservative owner-earnings model (9% discount rate, 4% assumed growth, capped at 4%), estimated intrinsic value is $16.08 per share versus a recent price of $26.87 — 67% above value. This is an educational estimate computed from primary SEC filings, not investment advice.
How has WBD's Moat Score changed over time?: The record logs 3 readings since Jul 17, 2026; the latest reads 46.2 out of 100 (shallow moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

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Scored from primary SEC filings via the public methodology. Educational only — not a recommendation to buy or sell WBD. See the disclaimer.