Discovery Inc. is massively undervalued right now (thank you Archegos Capital!).
If we factor in that Discovery+ is scaling (like Disney did) and also merging with AT&T's Warner Media (HBO Max) to create a streaming giant, probably the correct valuation is around 60$ one year from now. This number is based on my own discounted cash flow analysis, and EV/EBITDA multiples.
Free cash flow is already strong, and will start to increase even more with Discovery+ scaling.
From a technical point of view, DISCA is following a parabolic pattern, that may end up as a cup and handle pattern (but it should be unlikely, hence the title of this post). Right now we are just waiting and accumulating.
Disclaimer: this is not financial advice. I'm an amateur investor. Trade at your own risk.
If we factor in that Discovery+ is scaling (like Disney did) and also merging with AT&T's Warner Media (HBO Max) to create a streaming giant, probably the correct valuation is around 60$ one year from now. This number is based on my own discounted cash flow analysis, and EV/EBITDA multiples.
Free cash flow is already strong, and will start to increase even more with Discovery+ scaling.
From a technical point of view, DISCA is following a parabolic pattern, that may end up as a cup and handle pattern (but it should be unlikely, hence the title of this post). Right now we are just waiting and accumulating.
Disclaimer: this is not financial advice. I'm an amateur investor. Trade at your own risk.