diff --git a/homeassistant/components/stream/worker.py b/homeassistant/components/stream/worker.py
index 52fc9043470..6893c69ee3f 100644
--- a/homeassistant/components/stream/worker.py
+++ b/homeassistant/components/stream/worker.py
@@ -88,8 +88,6 @@ def _stream_worker_internal(hass, stream, quit_event):
     last_dts = None
     # Keep track of consecutive packets without a dts to detect end of stream.
     last_packet_was_without_dts = False
-    # Keep track of consecutive packets with a large dts gap to detect an overflow.
-    last_packet_had_large_negative_dts_gap = False
     # Holds the buffers for each stream provider
     outputs = None
     # Keep track of the number of segments we've processed
@@ -246,20 +244,18 @@ def _stream_worker_internal(hass, stream, quit_event):
 
         # Discard packet if dts is not monotonic
         if packet.dts <= last_dts[packet.stream]:
-            if (last_dts[packet.stream] - packet.dts) > (
-                packet.time_base * MAX_TIMESTAMP_GAP
+            if (
+                packet.time_base * (last_dts[packet.stream] - packet.dts)
+                > MAX_TIMESTAMP_GAP
             ):
-                if last_packet_had_large_negative_dts_gap:
-                    _LOGGER.warning(
-                        "Timestamp overflow detected: last dts %s, dts = %s, resetting stream",
-                        last_dts[packet.stream],
-                        packet.dts,
-                    )
-                    finalize_stream()
-                    break
-                last_packet_had_large_negative_dts_gap = True
+                _LOGGER.warning(
+                    "Timestamp overflow detected: last dts %s, dts = %s, resetting stream",
+                    last_dts[packet.stream],
+                    packet.dts,
+                )
+                finalize_stream()
+                break
             continue
-        last_packet_had_large_negative_dts_gap = False
 
         # Check for end of segment
         if packet.stream == video_stream and packet.is_keyframe: