Discovery Communicatications Stock Analysis, Valuation (NASDAQ:DISCK)

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$25.31 $1.16 (4.8%) DISCK stock closing price Jun 15, 2018 (Closing)

Watch the robo advisor video of Discovery Communicatications stock analysis on Amigobulls. Our DISCK analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Discovery Communications Inc. Stock Rating 2.7/5

Amigobulls DISCK stock analysis uses latest quarter 2018 Q1 financial data like Discovery Communicatications revenue growth, profit margins and cash flows. We compare Discovery Communicatications valuation with its sector peers to gauge relative attractiveness of DISCK stock. Based on a company's historical fundamentals we arrive at Discovery Communicatications stock rating which is indicative of the company's financial performance.

Should you buy DISCK stock?

  • Discovery Communicatications's revenue growth came in at 43% in 2018-03.
  • The company saw a significant growth in revenue with a 5 year CAGR of 10.6.
  • The price to earnings multiple of 12 is attractive when compared with the sector average PE ratio of 21.9.
  • The lower PS ratio 1.4 for DISCK stock versus Consumer Discretionary sector average of 1.6 is a positive for the company.

Should you sell DISCK stock?

  • Discovery Communicatications had an unimpressive average operating margin of 5.68 during the Last Twelve Months (LTM).
  • Discovery Communicatications registered an average TTM Net loss of -7.4%.
  • Discovery Communicatications has a debt/equity ratio of 2.02, which is worse than the average in the -sectordesc- sector.
  • Discovery Communicatications provides a low return on invested capital of 1.7.
  • Discovery Communicatications has a negative return on equity of -9.1. This indicates that the firm is inefficient at generating profits.

Comments on this video and Discovery Communicatications stock

Investors can use Amigobulls Discovery Communicatications stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Company's fundamentals remain one of the key driver of DISCK stock and helps investors in making good buy and sell decision.

Among the financials of the company, Discovery Communicatications revenue growth along with the profit or net income give a clear picture of the financial health. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.