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 5.49 is considered Undervalued compared with the five-year average of 9.53. The fair price of WPP PLC (WPP) is between 31.41 to 48.06 according to relative valuation methord. Compared to the current price of 22.85 USD , WPP PLC is Undervalued By 27.26%.
Relative Value
Fair Zone
31.41-48.06
Current Price：22.85
27.26%
Undervalued
5.49
PE
1Y
3Y
5Y
5.67
EV/EBITDA
WPP PLC. (WPP) has a current EV/EBITDA of 5.67. The 5-year average EV/EBITDA is 6.59. The thresholds are as follows: Strongly Undervalued below 4.77, Undervalued between 4.77 and 5.68, Fairly Valued between 7.50 and 5.68, Overvalued between 7.50 and 8.40, and Strongly Overvalued above 8.40. The current Forward EV/EBITDA of 5.67 falls within the Undervalued range.
7.26
EV/EBIT
WPP PLC. (WPP) has a current EV/EBIT of 7.26. The 5-year average EV/EBIT is 8.15. The thresholds are as follows: Strongly Undervalued below 5.73, Undervalued between 5.73 and 6.94, Fairly Valued between 9.36 and 6.94, Overvalued between 9.36 and 10.57, and Strongly Overvalued above 10.57. The current Forward EV/EBIT of 7.26 falls within the Historic Trend Line -Fairly Valued range.
0.36
PS
WPP PLC. (WPP) has a current PS of 0.36. The 5-year average PS is 0.78. The thresholds are as follows: Strongly Undervalued below 0.34, Undervalued between 0.34 and 0.56, Fairly Valued between 1.00 and 0.56, Overvalued between 1.00 and 1.22, and Strongly Overvalued above 1.22. The current Forward PS of 0.36 falls within the Undervalued range.
3.87
P/OCF
WPP PLC. (WPP) has a current P/OCF of 3.87. The 5-year average P/OCF is 7.20. The thresholds are as follows: Strongly Undervalued below 2.81, Undervalued between 2.81 and 5.00, Fairly Valued between 9.40 and 5.00, Overvalued between 9.40 and 11.60, and Strongly Overvalued above 11.60. The current Forward P/OCF of 3.87 falls within the Undervalued range.
5.74
P/FCF
WPP PLC. (WPP) has a current P/FCF of 5.74. The 5-year average P/FCF is 10.25. The thresholds are as follows: Strongly Undervalued below 2.79, Undervalued between 2.79 and 6.52, Fairly Valued between 13.98 and 6.52, Overvalued between 13.98 and 17.72, and Strongly Overvalued above 17.72. The current Forward P/FCF of 5.74 falls within the Undervalued range.
WPP PLC (WPP) has a current Price-to-Book (P/B) ratio of 1.15. Compared to its 3-year average P/B ratio of 4.13 , the current P/B ratio is approximately -72.17% higher. Relative to its 5-year average P/B ratio of 3.57, the current P/B ratio is about -67.80% higher. WPP PLC (WPP) has a Forward Free Cash Flow (FCF) yield of approximately 21.07%. Compared to its 3-year average FCF yield of 13.97%, the current FCF yield is approximately 50.85% lower. Relative to its 5-year average FCF yield of 13.86% , the current FCF yield is about 51.96% lower.
1.15
P/B
Median3y
4.13
Median5y
3.57
21.07
FCF Yield
Median3y
13.97
Median5y
13.86
Competitors Valuation Multiple
The average P/S ratio for WPP's competitors is 4.10, providing a benchmark for relative valuation. WPP PLC Corp (WPP) exhibits a P/S ratio of 0.36, which is -91.15% above the industry average. Given its robust revenue growth of %, this premium appears unsustainable.
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.
People Also Watch
VNOM
Viper Energy Inc
36.3USD
1.23%
GNRC
Generac Holdings Inc
148.79USD
4.89%
WTRG
Essential Utilities Inc
38.48USD
1.21%
EHC
Encompass Health Corp
104.99USD
-1.30%
EXAS
Exact Sciences Corp
101.78USD
0.15%
WMS
Advanced Drainage Systems Inc
151.61USD
2.28%
VFS
VinFast Auto Ltd
3.45USD
0.88%
MUSA
Murphy USA Inc
428.98USD
0.71%
DOX
Amdocs Ltd
84.07USD
1.69%
DBX
Dropbox Inc
27.46USD
0.59%
Frequently Asked Questions
Is WPP PLC (WPP) currently overvalued or undervalued?
WPP PLC (WPP) is now in the Undervalued zone, suggesting that its current forward PE ratio of 5.49 is considered Undervalued compared with the five-year average of 9.53. The fair price of WPP PLC (WPP) is between 31.41 to 48.06 according to relative valuation methord. Compared to the current price of 22.85 USD , WPP PLC is Undervalued By 27.26% .
What is WPP PLC (WPP) fair value?
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. The fair price of WPP PLC (WPP) is between 31.41 to 48.06 according to relative valuation methord.
How does WPP's valuation metrics compare to the industry average?
The average P/S ratio for WPP's competitors is 4.10, providing a benchmark for relative valuation. WPP PLC Corp (WPP) exhibits a P/S ratio of 0.36, which is -91.15% above the industry average. Given its robust revenue growth of %, this premium appears unsustainable.
What is the current P/B ratio for WPP PLC (WPP) as of Jan 09 2026?
As of Jan 09 2026, WPP PLC (WPP) has a P/B ratio of 1.15. This indicates that the market values WPP at 1.15 times its book value.
What is the current FCF Yield for WPP PLC (WPP) as of Jan 09 2026?
As of Jan 09 2026, WPP PLC (WPP) has a FCF Yield of 21.07%. This means that for every dollar of WPP PLC’s market capitalization, the company generates 21.07 cents in free cash flow.
What is the current Forward P/E ratio for WPP PLC (WPP) as of Jan 09 2026?
As of Jan 09 2026, WPP PLC (WPP) has a Forward P/E ratio of 5.49. This means the market is willing to pay $5.49 for every dollar of WPP PLC’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for WPP PLC (WPP) as of Jan 09 2026?
As of Jan 09 2026, WPP PLC (WPP) has a Forward P/S ratio of 0.36. This means the market is valuing WPP at $0.36 for every dollar of expected revenue over the next 12 months.