WPP Valuation

WPP PLC

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26.540

-0.05(-0.188%)1D

Overview
Forecast
Valuation
Earnings

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 6.56 is considered Undervalued compared with the five-year average of 9.91. The fair price of WPP PLC (WPP) is between 34.52 to 49.09 according to relative valuation methord. Compared to the current price of 26.54 USD , WPP PLC is Undervalued By 23.11%.

Relative Value

Fair Zone

34.52-49.09

Current Price：26.54

23.11%

Undervalued

6.56

Trailing

Forward

5.44

EV/EBITDA

WPP PLC. (WPP) has a current EV/EBITDA of 5.44. The 5-year average EV/EBITDA is 6.76. The thresholds are as follows: Strongly Undervalued below 4.89, Undervalued between 4.89 and 5.82, Fairly Valued between 7.69 and 5.82, Overvalued between 7.69 and 8.62, and Strongly Overvalued above 8.62. The current Forward EV/EBITDA of 5.44 falls within the Undervalued range.

6.82

EV/EBIT

WPP PLC. (WPP) has a current EV/EBIT of 6.82. The 5-year average EV/EBIT is 8.38. The thresholds are as follows: Strongly Undervalued below 5.78, Undervalued between 5.78 and 7.08, Fairly Valued between 9.69 and 7.08, Overvalued between 9.69 and 10.99, and Strongly Overvalued above 10.99. The current Forward EV/EBIT of 6.82 falls within the Undervalued range.

0.41

WPP PLC. (WPP) has a current PS of 0.41. The 5-year average PS is 0.82. The thresholds are as follows: Strongly Undervalued below 0.44, Undervalued between 0.44 and 0.63, Fairly Valued between 1.01 and 0.63, Overvalued between 1.01 and 1.20, and Strongly Overvalued above 1.20. The current Forward PS of 0.41 falls within the Strongly Undervalued range.

3.59

P/OCF

WPP PLC. (WPP) has a current P/OCF of 3.59. The 5-year average P/OCF is 7.42. The thresholds are as follows: Strongly Undervalued below 3.43, Undervalued between 3.43 and 5.43, Fairly Valued between 9.42 and 5.43, Overvalued between 9.42 and 11.41, and Strongly Overvalued above 11.41. The current Forward P/OCF of 3.59 falls within the Undervalued range.

4.75

P/FCF

WPP PLC. (WPP) has a current P/FCF of 4.75. The 5-year average P/FCF is 10.80. The thresholds are as follows: Strongly Undervalued below 3.67, Undervalued between 3.67 and 7.23, Fairly Valued between 14.37 and 7.23, Overvalued between 14.37 and 17.93, and Strongly Overvalued above 17.93. The current Forward P/FCF of 4.75 falls within the Undervalued range.

WPP PLC (WPP) has a current Price-to-Book (P/B) ratio of 6.68. Compared to its 3-year average P/B ratio of 3.91 , the current P/B ratio is approximately 70.88% higher. Relative to its 5-year average P/B ratio of 3.38, the current P/B ratio is about 97.66% higher. WPP PLC (WPP) has a Forward Free Cash Flow (FCF) yield of approximately 18.09%. Compared to its 3-year average FCF yield of 12.25%, the current FCF yield is approximately 47.71% lower. Relative to its 5-year average FCF yield of 13.46% , the current FCF yield is about 34.46% lower.

6.68

P/B

Median3y

3.91

Median5y

3.38

18.09

FCF Yield

Median3y

12.25

Median5y

13.46

Competitors Valuation Multiple

The average P/S ratio for WPP's competitors is 6.80, providing a benchmark for relative valuation. WPP PLC Corp (WPP) exhibits a P/S ratio of 0.41, which is -93.90% 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

Trump Media & Technology Group Corp

Clear Channel Outdoor Holdings Inc

0.38

6.99%

616.30M

Performance Decomposition

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.