Discovery Stock Price and Value Analysis

Should you buy Discovery stock? (NasdaqGS:DISCA). Let's see how it does in our automated value investing analysis system.

DISCA Free Cash Flow Trend

Free Cash Flow trendline for DISCA
Free Cash Flow trendline for Discovery

Based on historical returns, we believe that Discovery can grow its free cash at a rate of about 2%. That's positive!

AdvantagesDisadvantagesNeutral
  • This company has fluctuating growth.
  • This stock is available at a great discount!
  • This company is very stable.
  • This company is making money at a modest rate.
  • This company pays no dividend.

Inside the DISCA Numbers

DISCA Price
(Discovery stock price per share)
$64.25
[?] DISCA Fair Price
(based on intrinsic value)
$178.69
[?] DISCA Safety Price (based on a variable margin of safety) $142.95
[?] PE Ratio versus Sector 175% higher than other Technology stocks
[?] PE Ratio versus Industry 35% lower than other Unknown stocks
[?] Cash Yield 11.59%
[?] Free Cash Flow Jitter 28%

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 44,232,844 shares shorted. With 447,283,563 shares available for purchase and an average trading volume over the past 10 trading days of 9,085,557, it would take at least 4.868 days for all of the short holders to cover their shorts.

Is Discovery Stock on Sale?

We believe that Discovery may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Even better, Discovery looks like a stock on sale. Based on our analysis—if the company keeps making money the way it has been—you may be looking at a bargain. Keep this stock in mind as you put together your portfolio! See Before You Buy for your next steps (and read our disclaimer about investing risk).

Should You Buy DISCA Stock?

Does Discovery have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.