WPP plc

LSE:WPP Stock Report

Market Cap: UK£8.7b

WPP Valuation

Is WPP 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 WPP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WPP (£8.1) is trading below our estimate of fair value (£12.1)

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

Key Valuation Metric

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

Key metric: As WPP is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for WPP. This is calculated by dividing WPP's market cap by their current earnings.
What is WPP's PE Ratio?
PE Ratio42.7x
EarningsUK£203.40m
Market CapUK£8.69b

Price to Earnings Ratio vs Peers

How does WPP's PE Ratio compare to its peers?

The above table shows the PE ratio for WPP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.7x
INF Informa
35.5x22.4%UK£11.1b
FOUR 4imprint Group
15.7x4.6%UK£1.4b
NFG Next 15 Group
6.2x-8.0%UK£374.0m
SAA M&C Saatchi
21.4x27.4%UK£234.7m
WPP WPP
42.7x20.6%UK£8.7b

Price-To-Earnings vs Peers: WPP is expensive based on its Price-To-Earnings Ratio (42.7x) compared to the peer average (19.7x).

Price to Earnings Ratio vs Industry

How does WPP's PE Ratio compare vs other companies in the GB Media Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
WPP 42.7xIndustry Avg. 12.3xNo. of Companies6PE01632486480+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: WPP is expensive based on its Price-To-Earnings Ratio (42.7x) compared to the European Media industry average (12.5x).

Price to Earnings Ratio vs Fair Ratio

What is WPP'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.

WPP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio42.7x
Fair PE Ratio28.8x

Price-To-Earnings vs Fair Ratio: WPP is expensive based on its Price-To-Earnings Ratio (42.7x) compared to the estimated Fair Price-To-Earnings Ratio (28.8x).

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 WPP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£8.10
UK£8.47
+4.5%
16.0%UK£11.30UK£6.30n/a14
Nov ’25UK£8.28
UK£8.47
+2.2%
16.0%UK£11.30UK£6.30n/a14
Oct ’25UK£7.80
UK£8.33
+6.7%
17.8%UK£11.30UK£6.30n/a14
Sep ’25UK£7.24
UK£8.33
+15.0%
18.1%UK£11.30UK£6.30n/a14
Aug ’25UK£7.36
UK£8.80
+19.5%
17.9%UK£12.00UK£6.30n/a14
Jul ’25UK£7.19
UK£8.83
+22.8%
17.6%UK£12.00UK£6.30n/a14
Jun ’25UK£8.17
UK£8.84
+8.2%
17.0%UK£12.00UK£6.30n/a15
May ’25UK£8.07
UK£8.79
+8.9%
16.8%UK£12.00UK£6.30n/a15
Apr ’25UK£7.54
UK£8.76
+16.2%
18.5%UK£12.00UK£6.30n/a15
Mar ’25UK£7.14
UK£8.76
+22.7%
18.5%UK£12.00UK£6.30n/a15
Feb ’25UK£7.69
UK£9.07
+18.0%
20.2%UK£12.50UK£6.30n/a15
Jan ’25UK£7.53
UK£9.28
+23.3%
23.1%UK£12.80UK£6.40n/a15
Dec ’24UK£7.11
UK£9.62
+35.3%
24.9%UK£13.80UK£6.40n/a16
Nov ’24UK£7.11
UK£9.94
+39.7%
23.7%UK£13.80UK£6.40UK£8.2815
Oct ’24UK£7.33
UK£10.82
+47.6%
18.3%UK£13.80UK£7.45UK£7.8015
Sep ’24UK£7.70
UK£11.27
+46.3%
15.5%UK£14.20UK£8.40UK£7.2416
Aug ’24UK£8.51
UK£12.35
+45.1%
11.5%UK£14.50UK£8.40UK£7.3616
Jul ’24UK£8.23
UK£12.25
+48.8%
12.6%UK£14.50UK£8.60UK£7.1918
Jun ’24UK£8.64
UK£11.96
+38.3%
18.5%UK£15.00UK£5.18UK£8.1719
May ’24UK£9.27
UK£11.93
+28.6%
18.6%UK£15.00UK£5.18UK£8.0719
Apr ’24UK£9.59
UK£12.04
+25.6%
18.2%UK£15.00UK£5.18UK£7.5419
Mar ’24UK£10.35
UK£11.63
+12.4%
20.4%UK£15.00UK£5.18UK£7.1418
Feb ’24UK£9.59
UK£10.63
+10.9%
22.5%UK£15.00UK£5.18UK£7.6919
Jan ’24UK£8.20
UK£10.16
+23.8%
24.2%UK£15.00UK£5.18UK£7.5320
Dec ’23UK£8.74
UK£10.09
+15.4%
24.1%UK£15.00UK£5.18UK£7.1120
Nov ’23UK£7.84
UK£10.10
+28.8%
24.2%UK£15.00UK£5.18UK£7.1120

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

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