6 Undervalued Entertainment Stocks To Buy Right Now

3. Warner Bros. Discovery Inc. (NASDAQ:WBD)

Warner Bros. Discovery Inc. is an entertainment and media company that operates through network, DTC, and studio segments. The company produces and releases TV programs. It presents its content through various platforms including traditional TV channels, digital streaming services, linear networks, authenticated GO applications, and other platforms. The stock trades at a price-to-book value of 0.72 and has been trading at that level throughout the last year.

WBD doesn’t get as much attention as Netflix and Disney when it comes to streaming. That’s because it doesn’t make fresh content like Netflix does. This is a hard and capital-intensive job and it’s unlikely WBD will be able to pull it off. But the company has impressive IP including names like Harry Potter, Batman, and Game of Thrones among others. If it can find a way to repurpose this content and build on it, it could unlock some serious value.

More recently, the company is set to sell TVN Group, a leading Polish TV broadcaster, and has already received three different offers for the company. This would help the company simplify its structure and also pay off debt. On its Q3 earnings call in November, the company reiterated its plans to use its cash flows to pay off debt.