Valuation metrics for Time Warner
Valuation metrics consist of price-based and earnings-based multiples. Time Warner’s (TWX) stock price closed at $101.65 on July 26. Time Warner has a forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple of 10.7x. 21st Century Fox (FOXA), Comcast (CMCSA), and the Walt Disney Company (DIS) have forward EV-to-EBITDA multiples of 9.1x, 8.3x, and 10.0x, respectively.
Time Warner is currently trading at a forward PE (price-to-earnings) multiple of 15.5x. While Comcast is trading at a forward PE multiple of 17.7x, 21st Century Fox has a forward PE multiple of 13.8x.
Technical indicators for Time Warner
Time Warner has a 14-day RSI (relative strength index) of 51, which indicates that the stock is leaning toward being overbought. Currently, Time Warner is trading above its moving averages.
While the stock is trading 2.7% above its 100-day and 50-day moving average of $99.00, Time Warner is trading 1.7% above its 20-day moving average of $100.00.
Now let’s look at the stock’s Bollinger Bands. Bollinger Bands are a combination of the stock’s moving averages and indicate the volatility of the stock. Time Warner has an upper Bollinger Band of $102.00, a middle Bollinger Band of $100.00, and a lower Bollinger Band of $98.00.
The stock has a positive MACD (moving average convergence divergence) of 0.08. In contrast, its peers including 21st Century Fox, Comcast, and Disney all have negative MACDs of -0.03, -0.19, and -0.14, respectively. A positive MACD indicates an upward trading trend, while a negative MACD indicates a downward trading trend.