WPP plc

NYSE:WPP Stock Report

Market Cap: US$11.6b

WPP Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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 ($53.71) is trading below our estimate of fair value ($75.11)

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 Ratio44.9x
EarningsUK£203.40m
Market CapUK£9.14b

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 Average88.8x
IPG Interpublic Group of Companies
14x6.8%US$11.4b
OMC Omnicom Group
14x6.4%US$20.4b
MGNI Magnite
135.2x49.3%US$2.3b
IBTA Ibotta
192x64.9%US$2.1b
WPP WPP
44.9x20.6%US$9.1b

Price-To-Earnings vs Peers: WPP is good value based on its Price-To-Earnings Ratio (44.9x) compared to the peer average (88.8x).

Price to Earnings Ratio vs Industry

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

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
DISH DISH Network
2.5x-71.9%US$3.08b
GTN Gray Television
2.8x-29.4%US$426.56m
ABLV Able View Global
4xn/aUS$36.64m
HAO Haoxi Health Technology
3.6xn/aUS$7.43m
WPP 44.9xIndustry Avg. 15.5xNo. of Companies7PE01632486480+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: WPP is expensive based on its Price-To-Earnings Ratio (44.9x) compared to the US Media industry average (15.6x).

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 Ratio44.9x
Fair PE Ratio24.4x

Price-To-Earnings vs Fair Ratio: WPP is expensive based on its Price-To-Earnings Ratio (44.9x) compared to the estimated Fair Price-To-Earnings Ratio (24.4x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

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