(WPP) WPP - Overview
Sector: Communication Services | Industry: Advertising Agencies | Exchange: NYSE (USA) | Market Cap: 4.025m USD | Total Return: -51.2% in 12m
Avg Turnover: 7.11M
Warnings
Altman Z'' 0.36 < 1.0 - financial distress zone
Tailwinds
No distinct edge detected
WPP PLC is a London-based multinational advertising and communications group providing creative, data, and technology services across global markets. The company operates through three primary segments: Global Integrated Agencies, Public Relations, and Specialist Agencies, managing a portfolio that includes major brands like Ogilvy, VML, and GroupM.
The business model relies on a mix of retainer-based fees and project work, increasingly integrating artificial intelligence and data analytics to optimize media buying and consumer engagement. As part of the global advertising sector, WPP competes on the scale of its network and its ability to consolidate diverse marketing functions-from brand identity to crisis management-under a single corporate umbrella.
For a deeper look into the companys financial health and valuation metrics, consider reviewing the detailed reports available on ValueRay.
WPP maintains a significant geographic footprint in North America and Europe while expanding its footprint in emerging markets across the Asia Pacific and Latin America. Founded in 1985, the firm has evolved from a manufacturing entity into one of the worlds largest marketing services conglomerates by revenue.
- Global advertising spend cyclicality dictates overall organic revenue growth performance
- Client retention and account wins within major consumer goods sectors
- Operational efficiency gains through agency consolidation and back-office restructuring
- Increased capital allocation toward artificial intelligence and marketing technology integration
- Global macroeconomic volatility impacts corporate marketing budgets and discretionary spending
| Net Income: 327.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.08 > 0.02 and ΔFCF/TA 1.72 > 1.0 |
| NWC/Revenue: -5.89% < 20% (prev -7.24%; Δ 1.36% < -1%) |
| CFO/TA 0.09 > 3% & CFO 2.13b > Net Income 327.0m |
| Net Debt (6.03b) to EBITDA (2.21b): 2.72 < 3 |
| Current Ratio: 0.89 > 1.5 & < 3 |
| Outstanding Shares: last quarter (215.0m) vs 12m ago -80.31% < -2% |
| Gross Margin: 16.25% > 18% (prev 0.17%; Δ 1.61k% > 0.5%) |
| Asset Turnover: 113.4% > 50% (prev 86.27%; Δ 27.14% > 0%) |
| Interest Coverage Ratio: 2.70 > 6 (EBITDA TTM 2.21b / Interest Expense TTM 595.0m) |
| A: -0.07 (Total Current Assets 13.2b - Total Current Liabilities 14.8b) / Total Assets 24.1b |
| B: 0.09 (Retained Earnings 2.05b / Total Assets 24.1b) |
| C: 0.06 (EBIT TTM 1.61b / Avg Total Assets 24.9b) |
| D: 0.10 (Book Value of Equity 2.15b / Total Liabilities 21.3b) |
| Altman-Z'' = 0.36 = B |
| DSRI: 0.72 (Receivables 7.28b/7.98b, Revenue 28.3b/22.3b) |
| GMI: 1.04 (GM 16.25% / 16.91%) |
| AQI: 0.92 (AQ_t 0.37 / AQ_t-1 0.40) |
| SGI: 1.27 (Revenue 28.3b / 22.3b) |
| TATA: -0.07 (NI 327.0m - CFO 2.13b) / TA 24.1b) |
| Beneish M = -3.15 (Cap -4..+1) = AA |
As of May 30, 2026, the stock is trading at USD 18.60 with a total of 350,639 shares traded.
Over the past week, the price has changed by +0.11%,
over one month by +2.59%,
over three months by +0.00% and
over the past year by -51.24%.
WPP has received a consensus analysts rating of 3.00. Therefore, it is recommended to hold WPP.
- StrongBuy: 0
- Buy: 1
- Hold: 0
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 18.5 | -0.4% |
Market Cap GBP = 3.00b (4.03b USD * 0.7453 USD.GBP)
P/E Forward = 4.4366
P/S = 0.2971
P/B = 1.1866
P/EG = 4.229
Revenue TTM = 28.3b GBP
EBIT TTM = 1.61b GBP
EBITDA TTM = 2.21b GBP
Long Term Debt = 4.11b GBP (from longTermDebt, last quarter)
Short Term Debt = 1.04b GBP (from shortTermDebt, last quarter)
Debt = 8.73b GBP (from shortLongTermDebtTotal, last quarter) + Leases 1.90b
Net Debt = 6.03b GBP (calculated: Debt 8.73b - CCE 2.69b)
Enterprise Value = 9.03b GBP (3.00b + Debt 8.73b - CCE 2.69b)
Interest Coverage Ratio = 2.70 (Ebit TTM 1.61b / Interest Expense TTM 595.0m)
EV/FCF = 4.88x (Enterprise Value 9.03b / FCF TTM 1.85b)
FCF Yield = 20.50% (FCF TTM 1.85b / Enterprise Value 9.03b)
FCF Margin = 6.55% (FCF TTM 1.85b / Revenue TTM 28.3b)
Net Margin = 1.16% (Net Income TTM 327.0m / Revenue TTM 28.3b)
Gross Margin = 16.25% ((Revenue TTM 28.3b - Cost of Revenue TTM 23.7b) / Revenue TTM)
Gross Margin QoQ = 19.01% (prev 12.56%)
Tobins Q-Ratio = 0.38 (Enterprise Value 9.03b / Total Assets 24.1b)
Interest Expense / Debt = 6.82% (Interest Expense 595.0m / Debt 8.73b)
Taxrate = 21.0% (US default 21%)
NOPAT = 1.27b (EBIT 1.61b * (1 - 21.00%))
Current Ratio = 0.89 (Total Current Assets 13.2b / Total Current Liabilities 14.8b)
Debt / Equity = 3.44 (Debt 8.73b / totalStockholderEquity, last quarter 2.54b)
Debt / EBITDA = 2.72 (Net Debt 6.03b / EBITDA 2.21b)
Debt / FCF = 3.26 (Net Debt 6.03b / FCF TTM 1.85b)
Total Stockholder Equity = 3.17b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.31% (Net Income 327.0m / Total Assets 24.1b)
RoE = 10.32% (Net Income TTM 327.0m / Total Stockholder Equity 3.17b)
RoCE = 22.07% (EBIT 1.61b / Capital Employed (Equity 3.17b + L.T.Debt 4.11b))
RoIC = 12.51% (NOPAT 1.27b / Invested Capital 10.1b)
WACC = 6.26% (E(3.00b)/V(11.7b) * Re(8.80%) + D(8.73b)/V(11.7b) * Rd(6.82%) * (1-Tc(0.21)))
Discount Rate = 8.80% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 6.67 | Cagr: 0.17%
[DCF] Terminal Value 77.97% ; FCFF base≈1.73b ; Y1≈1.98b ; Y5≈2.92b
[DCF] Fair Price = 175.4 (EV 43.9b - Net Debt 6.03b = Equity 37.8b / Shares 215.7m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.0 | # QB: 0
Revenue Correlation: 52.42 | Revenue CAGR: 4.81% | SUE: N/A | # QB: 0
EPS current Year (2026-12-31): EPS=3.23 | Chg30d=-6.10% | Revisions=+0% | GrowthEPS=-24.3% | GrowthRev=-5.5%
EPS next Year (2027-12-31): EPS=3.32 | Chg30d=-6.11% | Revisions=+0% | GrowthEPS=+2.7% | GrowthRev=-0.4%
[Analyst] Revisions Ratio: +0%