WPP Relative Valuation
WPP's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, WPP is overvalued; if below, it's undervalued.
Historical Valuation
WPP PLC (WPP) is now in the Undervalued zone, suggesting that its current forward PE ratio of 4.66 is considered Undervalued compared with the five-year average of 9.64. The fair price of WPP PLC (WPP) is between 32.02 to 48.43 according to relative valuation methord. Compared to the current price of 19.45 USD , WPP PLC is Undervalued By 39.25%.
Relative Value
Fair Zone
32.02-48.43
Current Price：19.45
39.25%
Undervalued
4.57
PE
1Y
3Y
5Y
Trailing
Forward
5.35
EV/EBITDA
WPP PLC. (WPP) has a current EV/EBITDA of 5.35. The 5-year average EV/EBITDA is 6.63. The thresholds are as follows: Strongly Undervalued below 4.77, Undervalued between 4.77 and 5.70, Fairly Valued between 7.57 and 5.70, Overvalued between 7.57 and 8.50, and Strongly Overvalued above 8.50. The current Forward EV/EBITDA of 5.35 falls within the Undervalued range.
6.85
EV/EBIT
WPP PLC. (WPP) has a current EV/EBIT of 6.85. The 5-year average EV/EBIT is 8.22. The thresholds are as follows: Strongly Undervalued below 5.69, Undervalued between 5.69 and 6.95, Fairly Valued between 9.48 and 6.95, Overvalued between 9.48 and 10.74, and Strongly Overvalued above 10.74. The current Forward EV/EBIT of 6.85 falls within the Undervalued range.
0.31
PS
WPP PLC. (WPP) has a current PS of 0.31. The 5-year average PS is 0.79. The thresholds are as follows: Strongly Undervalued below 0.36, Undervalued between 0.36 and 0.58, Fairly Valued between 1.01 and 0.58, Overvalued between 1.01 and 1.22, and Strongly Overvalued above 1.22. The current Forward PS of 0.31 falls within the Strongly Undervalued range.
3.32
P/OCF
WPP PLC. (WPP) has a current P/OCF of 3.32. The 5-year average P/OCF is 7.27. The thresholds are as follows: Strongly Undervalued below 2.96, Undervalued between 2.96 and 5.12, Fairly Valued between 9.42 and 5.12, Overvalued between 9.42 and 11.58, and Strongly Overvalued above 11.58. The current Forward P/OCF of 3.32 falls within the Undervalued range.
4.92
P/FCF
WPP PLC. (WPP) has a current P/FCF of 4.92. The 5-year average P/FCF is 10.42. The thresholds are as follows: Strongly Undervalued below 2.93, Undervalued between 2.93 and 6.67, Fairly Valued between 14.16 and 6.67, Overvalued between 14.16 and 17.91, and Strongly Overvalued above 17.91. The current Forward P/FCF of 4.92 falls within the Undervalued range.
WPP PLC (WPP) has a current Price-to-Book (P/B) ratio of 0.97. Compared to its 3-year average P/B ratio of 4.05 , the current P/B ratio is approximately -75.97% higher. Relative to its 5-year average P/B ratio of 3.52, the current P/B ratio is about -72.28% higher. WPP PLC (WPP) has a Forward Free Cash Flow (FCF) yield of approximately 24.59%. Compared to its 3-year average FCF yield of 13.53%, the current FCF yield is approximately 81.75% lower. Relative to its 5-year average FCF yield of 13.75% , the current FCF yield is about 78.87% lower.
4.82
P/B
Median3y
4.05
Median5y
3.52
24.59
FCF Yield
Median3y
13.53
Median5y
13.75
Competitors Valuation Multiple
The average P/S ratio for WPP's competitors is 0.10, providing a benchmark for relative valuation. WPP PLC Corp (WPP) exhibits a P/S ratio of 0.31, which is 200.00% above the industry average. Given its robust revenue growth of %, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of WPP increased by 0.00% over the past 1 year. The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.
The secondary factor is the Unknown, contributed 0.00%to the performance.
Overall, the performance of WPP in the past 1 year is driven by Unknown.
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FAQ
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