QualityDipStocks / Consumer Discretionary · Advertising
WPP WPP
Outside our quality screen, so we don’t track its dips. It’s 1% below its 52-week high.
Outside our quality screen, trading well below our fair value estimate.
Worth knowing
- Net cash = 43% of its market cap
- FCF yield 14%, top 4% of the 1145 we measure
From the data on this page, as of the last close. How we pick these
- Fair value est.
- $62.56+129%
- Market Value
- —
- Off 52-wk high
- −1%
- Risk vs market
- Market-likebeta 0.94
5 bullish · 5 bearish See why
Valuation
What we estimate it's worth, and how it ranks on value vs every stock we cover.
Fair value estimate
How the range is computed
Ten-year free-cash-flow DCF. Same 10-year free-cash-flow model as the base: discount rate 9.5% ±1 point and growth 3.0% ±2 points. Bear = 10.5% and 1.0%; bull = 8.5% and 5.0% (both fade to 3%). A model estimate from public filings, not a forecast of where the price will go.
Price is below even the bear case.
Cyclical / peak cash flow — treat with care
What the price implies To be worth today’s price, WPP’s free cash flow would need to shrink about 11% a year for five years; our estimate uses 3%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 31 to Nov 2, 252 sessions). Beta = how much WPP moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Moves about in line with the market, and its own price swings are 4.2× the S&P 500’s.
- Beta vs S&P 500
- 0.94
- Volatility
- 53% vs 13% SPY
- Correlation SPY
- 0.23
- Correlation QQQ
- 0.10
How it ranks
Where WPP stands vs every one of the 1,996 stocks we cover that has the number. Longer bar = better.
Top quarter on 4 of 6 measures
- Discount to fair value estimate129% · price below our base caseTop 5%of 1,314
- Free cash flow yield14% · free cash flow vs market capTop 4%of 1,391
- Dividends + buybacks yield11% · cash paid out or used to retire shares, vs market capTop 4%of 1,836
- Revenue growth, last 12 months−8.1% · vs the 12 months beforeLowest 3%of 1,814
- Operating margin2.8% · of sales kept as operating profitLowest 19%of 1,288
- Return on invested capital37% · profit per dollar of capitalTop 8%of 838
From SEC filings and our fair value estimate model. A ranking, not advice.
Valuation details
DCF $62.56 · FCF value $85.66
Cyclical / peak cash flow — treat with care
Assumes 3.0% growth for 5 years (revenue grew -2.1% a year FY22–FY25; floored at 3%), fading to 3%; 9.5% discount rate, 3% terminal growth. FCF base $3.95 a share (fiscal year to Dec 31, 2025, converted from GBP at 1.342, 5 shares per ADR), from the 20-F filed Mar 19, 2026. Net debt $4.1B, not deducted.
Fundamentals
The business itself: sales, profits, cash and debt, from SEC filings.
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 5 of 5
ValuationFree-cash-flow yield of 14.5% (price / FCF 6.9×): $850M of free cash in the last 12 months.
ValuationOur DCF fair value estimate is $62.56, 129% above the price (cyclical or peak cash flow, so treat with care).
Balance sheetNet cash of $2.5B: cash and short-term investments exceed debt (Dec 31, 2025).
Cash returnsDividend yield of 9.0% ($528M paid over 12 months).
ProfitabilityReturn on invested capital of 37%, above the 9.5% discount rate our DCF uses.
Top bearish points 5 of 5
Balance sheetOperating income covers interest only 1.1× over the last 12 months.
ProfitabilityLost $289M over the last 12 months (net income, SEC filings).
Cash returnsFree cash flow fell 48% over the last 12 months vs the 12 months before.
ProfitabilityReturn on equity fell 12 points in two fiscal years, to -8% in FY2025.
QualityDoesn’t pass our quality screen: ROE under 12% and ROIC under 10%; sales down vs the year-ago quarter; net debt 8.3× EBITDA (limit 3×).
All fundamentals
FCF yield 14.5% · ROE -7% · Sales −8%
Valuation
- P/E
- n/aloss over the last 12 months
- Price / FCF
- 6.9×
- FCF yield
- 14.5%
- EV / EBITDA
- n/aD&A or debt not tagged in SEC data
- Price / sales
- 0.32×
- Price / book
- 1.72×
- Market cap
- $5.9Bprice × diluted shares
- Enterprise value
- $3.4B
Growth
- Revenue, 12 months
- $18.2B
- Sales growth, 12 months
- −8.1%vs the 12 months before
- Sales growth, 3 yrs
- −2.1%/yrfrom FY2022
- Diluted EPS, 12 months
- −$0.20
- EPS growth, last FY
- n/afewer than two years of diluted EPS
- Net income, 12 months
- −$289M
- Net income growth
- n/anot reported in its SEC filings
Profitability
- Gross margin
- 15.8%
- Operating margin
- 2.8%
- Net margin
- −1.6%
- FCF margin
- 4.7%
- Return on equity
- −7%
- Return on invested capital
- 37%
Balance sheet
- Cash & short-term inv.
- $3.6B
- Total debt
- $1.1B
- Net cash
- $2.5B
- Debt / equity
- 0.32×
- Interest coverage
- 1.1×operating income / interest
Cash flow & returns
- Free cash flow, 12 months
- $850M
- FCF growth, 12 months
- −48%
- Dividend yield
- 8.97%$528M paid
- Payout ratio
- n/anot reported in its SEC filings
- Buybacks, 12 months
- $130M2.2% of market cap
- Share count, 1 year
- n/ano quarterly diluted share count
- Stock-based comp
- n/anot reported in its SEC filings
Trailing 12 months to Dec 31, 2025; balance sheet at Dec 31, 2025. From WPP’s SEC filings, reported in GBP and converted to US dollars. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
The business
FCF $0.7B · Sales −4%
- Free cash flow, 12 months$0.7B
- Free-cash-flow yield14.5%
- Free-cash-flow margin6%
- Gross margin16%
- Operating margin4%
- Return on invested capital8%
- Return on equity−7%
- Sales growth (latest quarter vs year-ago quarter)−4%
- Net debt / EBITDA8.3×
Chart & levels
Where the price is vs its key levels and trends.
Key levels
Every level vs today’s $27.32
- 52-wk lowlowest close, 1 year$15.11−44.7%
- PriceMon Nov 2 close$27.32you are here
- 52-wk highhighest close, 1 year$27.55+0.8%
- Fair value est.base case$62.56+129.0%
Momentum & 52-week range
RSI 61 · 5 days +4.0%
Signals
Reversal signal setups, the public ledger and the next earnings date.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only run on companies that pass our quality screen.
WPP is outside our quality screen
One text when a published rule fires on one of the 332 quality companies we track: the ticker, the price, the stop and a link to the numbers. Nothing else.
Voices & buzz
Who is talking about it, and how it compares with peers.
Who’s talking about it
Notable investors, executives, analysts and public figures on WPP in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 3, 1:01 PM ET.
Compare with peers
Closest in size in Consumer Discretionary
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.