# WPP plc (WPP.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Communication Services / Diversified Telecommunication Services. Price 381p, market value 4.1 billionp.

## Valuation
- **P/E (trailing): n/a** (negative earnings). WPP plc reported negative earnings over the last twelve months, so the P/E is not meaningful; use price-to-sales, EV/EBITDA and free-cash-flow yield instead.
- **Price / sales: 0.1×**. Each dollar of revenue is priced at 0.1×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 1.6×**. The shares trade at 1.6× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 2.5×**. Enterprise value is 2.5× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 45.1%** (5-yr avg 0.1%). Free cash flow equals 45.1% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.

## Profitability
- **Gross margin: 16.2%**. WPP plc keeps 16.2% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 9.2%**. 9.2% of revenue is left after running the business.
- **Net margin: -1.6%**. The company reported a net loss over the last twelve months.
- **Return on equity: -8.5%**. Return on equity is negative because earnings are negative.
- **Return on invested capital: 19.4%**. Return on all capital, debt included, is 19.4%: comfortably above what that capital costs.
- **Return on assets: 1.4%**. Each dollar of assets produces 1.4% of profit.

## Growth
- **Revenue growth (1 yr): -8.1%** (3-yr -2.1%/yr, 5-yr 2.5%/yr). Revenue fell 8.1% over the last year, against 2.5% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -140.8%**. Earnings per share fell 140.8%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 9.8%/yr**. Free cash flow has compounded at 9.8% a year over three years.

## Financial health
- **Debt to equity: 2.69**. Debt is 2.69 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 1.3×**. It would take 1.3 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 3.4×**. Operating profit covers interest 3.4× over, a safe margin.
- **Current ratio: 0.89** (quick 0.89). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 0.91**. A Z-score of 0.91 is in the distress zone, a signal to examine the balance sheet closely.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 3.98%** (0p per share, trailing). WPP plc yields 3.98%, an income-level yield.
- **Dividend growth (5 yr): 26.1%/yr** (1-yr -19.0%). The dividend has compounded at 26.1% a year over five years, doubling roughly every 3 years at that pace.
- **Shareholder yield: 8.3%**. Dividends plus net buybacks return 8.3% of the market value a year.

## Analyst view
- **Analyst consensus: hold** (15 analysts). 15 analysts cover WPP plc; the consensus is hold, with an average price target of 356p (-7% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -7.0%** (YTD 9.9%, 3-mo 41.4%). The shares are down 7.0% over twelve months including dividends.
- **From 52-week high: -7.8%** (74.2% above the low). Trading 8% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 54**. An RSI of 54 is neutral.
- **Beta (1 yr): 0.99** (volatility 54%). Beta of 0.99 against the FTSE All-Share: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=WPP.L · Page: https://foliofundamentals.com/stocks/wpp.l

Not investment advice.