WPP Valuation

Is 0WP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 0WP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0WP (€9.35) is trading below our estimate of fair value (€17.63)

Significantly Below Fair Value: 0WP is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0WP?

Other financial metrics that can be useful for relative valuation.

0WP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.9x
Enterprise Value/EBITDA17.5x
PEG Ratio2.9x

Price to Earnings Ratio vs Peers

How does 0WP's PE Ratio compare to its peers?

The above table shows the PE ratio for 0WP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.1x
SAX Ströer SE KGaA
37.3x30.1%€3.5b
M8G MGI - Media and Games Invest
6.1x-8.3%€284.1m
RRTL RTL Group
13x11.5%€4.6b
G24 Scout24
28.2x11.6%€5.1b
0WP WPP
79x27.2%€8.7b

Price-To-Earnings vs Peers: 0WP is expensive based on its Price-To-Earnings Ratio (79x) compared to the peer average (21.1x).


Price to Earnings Ratio vs Industry

How does 0WP's PE Ratio compare vs other companies in the European Media Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a25.4%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a25.4%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: 0WP is expensive based on its Price-To-Earnings Ratio (79x) compared to the European Media industry average (14.2x).


Price to Earnings Ratio vs Fair Ratio

What is 0WP's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

0WP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio79x
Fair PE Ratio37.2x

Price-To-Earnings vs Fair Ratio: 0WP is expensive based on its Price-To-Earnings Ratio (79x) compared to the estimated Fair Price-To-Earnings Ratio (37.2x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 0WP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€9.35
€10.27
+9.9%
16.8%€14.02€7.36n/a15
Apr ’25€8.56
€10.23
+19.5%
18.5%€14.02€7.36n/a15
Mar ’25€8.21
€10.24
+24.7%
18.5%€14.03€7.37n/a15
Feb ’25€8.96
€10.64
+18.8%
20.2%€14.66€7.39n/a15
Jan ’25€8.55
€10.72
+25.4%
23.1%€14.78€7.39n/a15
Dec ’24€8.14
€11.00
+35.1%
24.9%€15.79€7.32n/a16
Nov ’24€8.06
€11.42
+41.7%
23.7%€15.86€7.36n/a15
Oct ’24€8.38
€12.50
+49.1%
18.3%€15.94€8.60n/a15
Sep ’24€8.84
€13.17
+49.0%
15.5%€16.59€9.81n/a16
Aug ’24€9.86
€14.31
+45.1%
11.5%€16.80€9.73n/a16
Jul ’24€9.35
€14.26
+52.5%
12.6%€16.87€10.01n/a18
Jun ’24€9.93
€13.58
+36.7%
18.5%€17.03€5.89n/a19
May ’24€10.36
€13.60
+31.3%
18.6%€17.11€5.91€9.5019
Apr ’24€10.80
€13.68
+26.6%
18.2%€17.04€5.89€8.5619
Mar ’24€11.60
€13.17
+13.5%
20.4%€16.98€5.87€8.2118
Feb ’24€10.70
€12.06
+12.7%
22.5%€17.01€5.88€8.9619
Jan ’24€9.20
€11.65
+26.7%
24.2%€17.21€5.95€8.5520
Dec ’23€10.10
€11.51
+14.0%
24.1%€17.12€5.92€8.1420
Nov ’23€8.95
€11.74
+31.2%
24.2%€17.44€6.03€8.0620
Oct ’23€8.25
€12.01
+45.6%
24.4%€17.09€7.41€8.3821
Sep ’23€8.45
€13.07
+54.6%
26.2%€21.08€7.61€8.8421
Aug ’23€10.40
€13.49
+29.7%
24.5%€21.16€7.64€9.8621
Jul ’23€9.40
€14.57
+55.0%
16.5%€20.97€9.90€9.3522
Jun ’23€10.80
€14.92
+38.1%
15.1%€21.18€10.00€9.9322
May ’23€11.90
€15.11
+26.9%
14.6%€21.36€11.27€10.3622

Analyst Forecast: Target price is less than 20% higher than the current share price.


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