Latest Ratios: P/E Ratio -19.1x · EV/EBITDA 13.1x · ROE -6.6%. (2004–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $5.5B | $4.8B | $11.3B | $10.4B | $11.0B | $18.4B | $13.4B | $17.7B | $13.8B | $23.1B | $28.7B |
| Enterprise Value | $10.9B | $9.0B | $15.0B | $15.1B | $15.7B | $21.3B | $16.2B | $22.4B | $18.5B | $27.9B | $33.0B |
| P/E Ratio → | -19.09 | — | 20.98 | 95.14 | 16.12 | 29.06 | — | 20.98 | 19.93 | 13.42 | 20.49 |
| P/S Ratio | 0.30 | 0.36 | 0.77 | 0.70 | 0.76 | 1.43 | 1.11 | 1.34 | 1.06 | 1.76 | 1.93 |
| P/B Ratio | 1.48 | 1.74 | 3.02 | 2.72 | 2.64 | 4.51 | 2.65 | 2.14 | 1.41 | 2.32 | 2.94 |
| P/FCF | 6.51 | 7.64 | 9.62 | 10.19 | 22.98 | 10.58 | 7.52 | 11.73 | 10.02 | 20.65 | 18.85 |
| P/OCF | 5.69 | 6.68 | 8.01 | 8.41 | 15.66 | 9.05 | 6.52 | 9.58 | 8.16 | 16.41 | 16.17 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.66 | 1.02 | 1.01 | 1.09 | 1.66 | 1.35 | 1.69 | 1.42 | 2.12 | 2.22 |
| EV / EBITDA | 13.15 | 14.29 | 8.24 | 8.83 | 8.37 | 12.03 | 5.58 | 13.85 | 10.87 | 13.73 | 13.25 |
| EV / EBIT | 21.61 | 23.49 | 10.69 | 20.49 | 10.31 | 17.26 | — | 17.36 | 14.92 | 17.80 | 16.07 |
| EV / FCF | — | 14.17 | 12.79 | 14.76 | 32.80 | 12.27 | 9.12 | 14.81 | 13.40 | 24.96 | 21.68 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 15.8% | 15.8% | 16.6% | 17.0% | 17.6% | 17.2% | 16.8% | 18.2% | 19.1% | 20.3% | 20.4% |
| Operating Margin | 2.8% | 2.8% | 9.0% | 3.6% | 9.4% | 9.6% | 19.0% | 9.8% | 9.5% | 12.0% | 13.9% |
| Net Profit Margin | -1.6% | -1.6% | 3.7% | 0.7% | 4.7% | 5.0% | -24.7% | 6.4% | 6.3% | 14.9% | 9.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -6.6% | -6.6% | 14.3% | 2.8% | 16.6% | 14.0% | -44.4% | 9.3% | 8.4% | 19.9% | 15.7% |
| ROA | -0.9% | -0.9% | 2.1% | 0.4% | 2.4% | 2.0% | -7.8% | 2.1% | 1.9% | 5.0% | 4.4% |
| ROIC | 4.0% | 4.0% | 12.5% | 4.6% | 12.8% | 12.4% | 16.4% | 7.1% | 6.4% | 8.2% | 12.2% |
| ROCE | 4.0% | 4.0% | 13.0% | 4.9% | 12.1% | 10.1% | 16.0% | 7.9% | 7.1% | 8.7% | 12.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 2.46 | 2.46 | 1.70 | 1.79 | 1.73 | 1.68 | 3.12 | 1.82 | 1.54 | 1.64 | 0.67 |
| Debt / EBITDA | 10.88 | 10.88 | 3.49 | 4.03 | 3.84 | 3.85 | 5.41 | 9.35 | 8.87 | 8.03 | 2.64 |
| Net Debt / Equity | — | 1.49 | 0.99 | 1.22 | 1.13 | 0.72 | 0.56 | 0.56 | 0.48 | 0.48 | 0.44 |
| Net Debt / EBITDA | 6.59 | 6.59 | 2.04 | 2.73 | 2.51 | 1.66 | 0.98 | 2.88 | 2.73 | 2.37 | 1.73 |
| Debt / FCF | — | 6.54 | 3.17 | 4.56 | 9.82 | 1.70 | 1.60 | 3.08 | 3.37 | 4.31 | 2.83 |
| Interest Coverage | 1.09 | 1.09 | 3.36 | 1.89 | 4.23 | 4.35 | -7.94 | 3.66 | 4.55 | 6.04 | 8.38 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.89 | 0.89 | 0.88 | 0.86 | 0.85 | 0.93 | 1.03 | 0.99 | 0.97 | 0.99 | 0.92 |
| Quick Ratio | 0.89 | 0.89 | 0.88 | 0.86 | 0.85 | 0.93 | 1.03 | 0.99 | 0.65 | 0.62 | 0.90 |
| Cash Ratio | 0.18 | 0.18 | 0.17 | 0.14 | 0.14 | 0.24 | 0.56 | 0.47 | 0.44 | 0.47 | 0.15 |
| Asset Turnover | — | 0.56 | 0.58 | 0.56 | 0.50 | 0.46 | 0.33 | 0.33 | 0.31 | 0.31 | 0.43 |
| Inventory Turnover | — | — | — | — | — | — | — | — | 1.28 | 1.14 | 29.59 |
| Days Sales Outstanding | — | 196.08 | 267.47 | 180.19 | 298.75 | 307.78 | 318.92 | 326.06 | 364.05 | 346.14 | 301.46 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 8.4% | 7.1% | 3.8% | 4.1% | 3.3% | 1.7% | 0.9% | 4.2% | 5.4% | 3.3% | 2.1% |
| Payout Ratio | — | — | 78.4% | 383.0% | 53.5% | 49.3% | — | 88.9% | 90.6% | 38.3% | 44.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | 4.8% | 1.1% | 6.2% | 3.4% | — | 4.8% | 5.0% | 7.5% | 4.9% |
| FCF Yield | 15.4% | 13.1% | 10.4% | 9.8% | 4.4% | 9.5% | 13.3% | 8.5% | 10.0% | 4.8% | 5.3% |
| Buyback Yield | 2.4% | 2.0% | 0.7% | 0.5% | 7.9% | 4.5% | 2.2% | 0.2% | 1.5% | 2.2% | 1.5% |
| Total Shareholder Yield | 10.7% | 9.1% | 4.5% | 4.6% | 11.2% | 6.2% | 3.1% | 4.5% | 6.9% | 5.4% | 3.6% |
| Shares Outstanding | — | $215M | $219M | $219M | $223M | $243M | $247M | $252M | $252M | $255M | $259M |
Includes 30+ ratios · 22 years · Updated daily
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Quick answers to the most common questions about buying WPP stock.
WPP plc's current P/E ratio is -19.1x. The historical average is 29.3x.
WPP plc's current EV/EBITDA is 13.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.2x.
WPP plc's return on equity (ROE) is -6.6%. The historical average is 8.3%.
Based on historical data, WPP plc is trading at a P/E of -19.1x. Compare with industry peers and growth rates for a complete picture.
WPP plc's current dividend yield is 8.35%.
WPP plc has 15.8% gross margin and 2.8% operating margin.
WPP plc's Debt/EBITDA ratio is 10.9x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Leverage surge amid asset erosion
Valuation Discount Reflects Severe Earnings Contraction
WPP trades at a forward EV/EBITDA of 7.51x and a P/FCF of 6.75x, metrics that appear cheap relative to Omnicom's 10.45x EV/EBITDA, but the discount is justified by a net margin of just 0.3% and a negative TTM P/E, signaling profound earnings distress rather than a value opportunity.
The low forward multiples are not a vote of confidence but a direct reflection of collapsing profitability and negative free cash flow. The negative TTM P/E of -19.81 confirms the company is currently loss-making on a trailing basis. Investors should note the high 8.0% dividend yield may be unsustainable if the current cash burn and margin compression persist, as the payout appears poorly supported by underlying earnings.
Gross Margin Collapse Signals Structural Erosion
WPP's gross margin has structurally compressed to 12.6% in the latest quarter, a severe deterioration from the ~19% average in 2021-2023 and well below peers, indicating a fundamental impairment in pricing power or cost structure that is now flowing directly to the bottom line.
The operating margin of 5.7% is entirely a function of this gross margin collapse, not efficient operating cost management. Net margin at 0.3% suggests that after all expenses, the company is barely breaking even. This profitability profile is fundamentally misaligned with the asset-light model of its peers and indicates a loss of competitive positioning that may require significant restructuring to address.
ROIC Collapse Indicates Value Destruction
WPP's return on invested capital has deteriorated to 3.8% from a peak of 8.0% in 2024Q4, a level that now sits far below its estimated cost of capital and represents a significant deterioration in the company's ability to generate returns for shareholders.
The ROIC trend, falling from over 6% in 2021 to below 4% currently, is driven entirely by margin compression rather than improved capital efficiency, as asset turnover has remained stagnant around 0.27. This suggests the business is earning returns well below the hurdle rate, effectively destroying shareholder value on each dollar of capital deployed.
Leverage Spike Amplifies Operational Fragility
WPP's debt-to-equity ratio has surged to 2.58 in 2026Q2, a level that has increased by over 50% since 2021, while the interest coverage ratio has collapsed from a comfortable 5.61x to a precarious 2.10x, indicating a rapid and concerning deterioration in debt-serviceability.
The leverage increase is occurring as the asset base shrinks and equity is depleted, meaning it is not being used for growth but appears to be a necessity. The D/EBITDA ratio of 12.22x is alarming, though it is distorted by depressed EBITDA; the underlying trend is a dangerous one where operational weakness is now severely constraining financial flexibility.
Chronic Liquidity Strain Evident
Based on reported figures, WPP's current ratio has remained below 1.0 for eight consecutive quarters, hitting 0.87 in 2026Q2, indicating a sustained reliance on short-term financing and a balance sheet position that would be vulnerable under any significant operational stress.
The persistent sub-1.0 current ratio is not a strategic choice for efficiency but a reflection of structural cash flow weakness. This liquidity position offers no cushion, meaning any further deterioration in the cash conversion cycle or a tightening of credit markets could force difficult financing decisions or asset sales.
The Misleading P/E and the Cash Flow Fallacy
The most commonly misapplied ratio for WPP is the forward P/E of 7.56x, which looks attractive but is built on earnings assumptions that ignore the severe, ongoing contraction in gross margins and the negative free cash flow generation that defines the current operational reality.
Analysts relying on forward P/E are likely overstating normalized earnings power. The more relevant metric is FCF Yield, which is negative, and the Cash Conversion Cycle, which cannot be calculated due to missing data but whose volatility (evident in working capital swings) dominates cash flow. The focus should be on gross margin trajectory and debt maturity schedules, not on earnings multiples based on forecasts that appear disconnected from the company's deteriorating fundamentals.