Evaluate Time Warner's value range using the comparable company approach To facilitate comparisons and calculations, you can merge Time Warner's three business segments into two parts - Entertainment (Warner Bros.) and Channel Networks (HBO and Turner) - and compare value indicators for these segments against those of comparable companies (see Exhibit 7) Exhibit 7. Multiples of Major Competitors in the Media Industry P/E Ratio Entertainment Division (Warner Bros.) The Walt Disney Company 21st Century Fox, Inc. CBS Corporation Channels and Network Division (Turner and HBO) AMC Network Discovery Communications, Inc. Scripps Networks Interactive, Inc. Source: D&B Hoovers database 16.23 15.93 15.29 12.54 13.64 10.57 EV/EBITDA 9.51 9.01 10.97 5.93 8.75 4.74