Here is the article on seekingalpha.com.
There are more than 3 billion Internet users globally, and 74 or 22 million is not a very significant percentage. Also, if we compare Netflix's (NFLX) subscriber statistics, the company had around 222 million subscribers at the end of 2021. This dynamic illustrates a great deal of market share to capture for WBD, and the market will not get saturated for a long time.
Analysts' estimates are for around $50 billion in revenues for WBD this year. Furthermore, WBD's revenues will likely rise by about 7%-12% YoY in 2023. If the company builds on its growth momentum, it can continue delivering robust growth in future years. The stock's valuation is only about $63 billion today, as the company is trading at only around ten times forward EPS estimates and roughly 1.2 times expected sales. These are remarkably low valuation ratios for a company in WBD's position, implying that shares are grossly undervalued now.
In comparison, Disney (DIS) trades at a forward P/E ratio of around 30 and has a forward sales ratio of roughly 2.7. Netflix also trades at a P/E ratio of about 30 but has a P/S ratio of about 5. Therefore, we see that WBD's nearest competitors trade at ratios 2.5-5 times higher. It's difficult to explain this vast disconnect, but it appears like WBD's stock price can double, and it will still be substantially less expensive than Netflix or Disney. Therefore, I suspect we can see much more upside from WBD as we advance.
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