WPP plc (WPP) Financial Ratios
21 years of historical data (2004–2024) · Communication Services · Advertising Agencies
EV/EBITDA
↑
3.66
↓-58% vs avg
5yr avg: 8.61
30Y Low5.6·High21.4
P/FCF
↑
2.51
↓-79% vs avg
5yr avg: 12.18
30Y Low7.5·High34.1
P/B Ratio
↑
0.80
↓-74% vs avg
5yr avg: 3.11
30Y Low1.2·High4.5
ROE
↑
14.3%
↓+2113% vs avg
5yr avg: 0.6%
30Y Low-44%·High20%
Debt/EBITDA
↓
3.49
↓-15% vs avg
5yr avg: 4.13
30Y Low2.3·High9.3
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
WPP Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
WPP plc trades at 5.6x earnings, 86% below its 5-year average of 40.3x, sitting at the 0th percentile of its historical range. Compared to the Communication Services sector median P/E of 15.3x, the stock trades at a discount of 64%. On a free-cash-flow basis, the stock trades at 2.5x P/FCF, 79% below the 5-year average of 12.2x.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $3.9B | $11.3B | $10.4B | $11.0B | $18.4B | $13.4B | $17.7B | $13.8B | $23.1B | $28.7B | $30.1B |
| Enterprise Value | $8.8B | $15.0B | $15.1B | $15.7B | $21.3B | $16.2B | $22.4B | $18.5B | $27.9B | $33.0B | $33.5B |
| P/E Ratio → | 5.56 | 20.98 | 95.14 | 16.12 | 29.06 | — | 20.98 | 19.93 | 13.42 | 20.49 | 26.08 |
| P/S Ratio | 0.20 | 0.77 | 0.70 | 0.76 | 1.43 | 1.11 | 1.34 | 1.06 | 1.76 | 1.93 | 2.46 |
| P/B Ratio | 0.80 | 3.02 | 2.72 | 2.64 | 4.51 | 2.65 | 2.14 | 1.41 | 2.32 | 2.94 | 3.76 |
| P/FCF | 2.51 | 9.62 | 10.19 | 22.98 | 10.58 | 7.52 | 11.73 | 10.02 | 20.65 | 18.85 | 26.21 |
| P/OCF | 2.09 | 8.01 | 8.41 | 15.66 | 9.05 | 6.52 | 9.58 | 8.16 | 16.41 | 16.17 | 22.16 |
P/E links to full P/E history page with 30-year chart
WPP EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
WPP plc's enterprise value stands at 3.7x EBITDA, 58% below its 5-year average of 8.6x. The Communication Services sector median is 9.6x, placing the stock at a 62% discount on an enterprise-value basis.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.02 | 1.01 | 1.09 | 1.66 | 1.35 | 1.69 | 1.42 | 2.12 | 2.22 | 2.74 |
| EV / EBITDA | 3.66 | 8.24 | 8.83 | 8.37 | 12.03 | 5.58 | 13.85 | 10.87 | 13.73 | 13.25 | 16.74 |
| EV / EBIT | 5.02 | 10.69 | 20.49 | 10.31 | 17.26 | — | 17.36 | 14.92 | 17.80 | 16.07 | 20.65 |
| EV / FCF | — | 12.79 | 14.76 | 32.80 | 12.27 | 9.12 | 14.81 | 13.40 | 24.96 | 21.68 | 29.14 |
WPP Profitability
Margins and return-on-capital ratios measuring operating efficiency
WPP plc earns an operating margin of 9.0%, above the Communication Services sector average of 1.6%. ROE of 14.3% is modest. ROIC of 12.5% represents solid returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 16.6% | 16.6% | 17.0% | 17.6% | 17.2% | 16.8% | 18.2% | 19.1% | 20.3% | 20.4% | 20.6% |
| Operating Margin | 9.0% | 9.0% | 3.6% | 9.4% | 9.6% | 19.0% | 9.8% | 9.5% | 12.0% | 13.9% | 13.3% |
| Net Profit Margin | 3.7% | 3.7% | 0.7% | 4.7% | 5.0% | -24.7% | 6.4% | 6.3% | 14.9% | 9.4% | 9.5% |
Return on Capital
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 14.3% | 14.3% | 2.8% | 16.6% | 14.0% | -44.4% | 9.3% | 8.4% | 19.9% | 15.7% | 14.6% |
| ROA | 2.1% | 2.1% | 0.4% | 2.4% | 2.0% | -7.8% | 2.1% | 1.9% | 5.0% | 4.4% | 4.1% |
| ROIC | 12.5% | 12.5% | 4.6% | 12.8% | 12.4% | 16.4% | 7.1% | 6.4% | 8.2% | 12.2% | 11.1% |
| ROCE | 13.0% | 13.0% | 4.9% | 12.1% | 10.1% | 16.0% | 7.9% | 7.1% | 8.7% | 12.5% | 11.4% |
WPP Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
WPP plc carries a Debt/EBITDA ratio of 3.5x, which is moderately leveraged (roughly in line with the sector average of 3.6x). Net debt stands at $3.7B ($6.3B total debt minus $2.6B cash). Interest coverage of 3.2x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.70 | 1.70 | 1.79 | 1.73 | 1.68 | 3.12 | 1.82 | 1.54 | 1.64 | 0.67 | 0.70 |
| Debt / EBITDA | 3.49 | 3.49 | 4.03 | 3.84 | 3.85 | 5.41 | 9.35 | 8.87 | 8.03 | 2.64 | 2.80 |
| Net Debt / Equity | — | 0.99 | 1.22 | 1.13 | 0.72 | 0.56 | 0.56 | 0.48 | 0.48 | 0.44 | 0.42 |
| Net Debt / EBITDA | 2.04 | 2.04 | 2.73 | 2.51 | 1.66 | 0.98 | 2.88 | 2.73 | 2.37 | 1.73 | 1.68 |
| Debt / FCF | — | 3.17 | 4.56 | 9.82 | 1.70 | 1.60 | 3.08 | 3.37 | 4.31 | 2.83 | 2.93 |
| Interest Coverage | 3.18 | 3.18 | 1.37 | 3.78 | 4.33 | 7.30 | 3.68 | 4.58 | 6.08 | 8.42 | 7.62 |
WPP Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.88x is below 1.0, meaning current liabilities exceed current assets — though the company's $2.6B cash position helps mitigate short-term liquidity concerns.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.88 | 0.88 | 0.86 | 0.85 | 0.93 | 1.03 | 0.99 | 0.97 | 0.99 | 0.92 | 0.94 |
| Quick Ratio | 0.88 | 0.88 | 0.86 | 0.85 | 0.93 | 1.03 | 0.99 | 0.65 | 0.62 | 0.90 | 0.92 |
| Cash Ratio | 0.17 | 0.17 | 0.14 | 0.14 | 0.24 | 0.56 | 0.47 | 0.44 | 0.47 | 0.15 | 0.17 |
| Asset Turnover | — | 0.58 | 0.56 | 0.50 | 0.46 | 0.33 | 0.33 | 0.31 | 0.31 | 0.43 | 0.42 |
| Inventory Turnover | — | — | — | — | — | — | — | 1.28 | 1.14 | 29.59 | 29.51 |
| Days Sales Outstanding | — | 267.47 | 180.19 | 298.75 | 307.78 | 318.92 | 326.06 | 364.05 | 346.14 | 301.46 | 202.84 |
WPP Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
WPP plc returns 17.0% to shareholders annually — split between a 14.2% dividend yield and 2.8% buyback yield. The payout ratio of 78.4% is elevated — while still covered by earnings, there is limited headroom for dividend increases. The earnings yield of 18.0% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 14.2% | 3.8% | 4.1% | 3.3% | 1.7% | 0.9% | 4.2% | 5.4% | 3.3% | 2.1% | 1.8% |
| Payout Ratio | 78.4% | 78.4% | 383.0% | 53.5% | 49.3% | — | 88.9% | 90.6% | 38.3% | 44.0% | 47.0% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 18.0% | 4.8% | 1.1% | 6.2% | 3.4% | — | 4.8% | 5.0% | 7.5% | 4.9% | 3.8% |
| FCF Yield | 39.9% | 10.4% | 9.8% | 4.4% | 9.5% | 13.3% | 8.5% | 10.0% | 4.8% | 5.3% | 3.8% |
| Buyback Yield | 2.8% | 0.7% | 0.5% | 7.9% | 4.5% | 2.2% | 0.2% | 1.5% | 2.2% | 1.5% | 2.0% |
| Total Shareholder Yield | 17.0% | 4.5% | 4.6% | 11.2% | 6.2% | 3.1% | 4.5% | 6.9% | 5.4% | 3.6% | 3.8% |
| Shares Outstanding | — | $219M | $219M | $223M | $243M | $247M | $252M | $252M | $255M | $259M | $263M |
Peer Comparison
Compare WPP with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 WPPYou | $4B | 5.6 | 3.7 | 2.5 | 16.6% | 9.0% | 14.3% | 12.5% | 3.5 |
 OMC | $22B | -264.3 | 9.8 | 7.9 | 17.3% | 15.0% | -0.6% | 14.5% | 4.5 |
 IPG | $9B | 13.4 | 7.5 | 9.8 | 17.0% | 11.3% | 17.3% | 14.7% | 2.9 |
 HURN | $1B | 15.5 | 8.6 | 8.0 | 29.9% | 11.7% | 19.3% | 15.0% | 2.4 |
 ICFI | $1B | 13.4 | 8.4 | 10.0 | 34.1% | 8.1% | 9.1% | 7.2% | 2.7 |
 FORR | $128M | -1.1 | 8.2 | 7.1 | 53.3% | 0.5% | -67.0% | 0.8% | 4.3 |
 CODA | $113M | 27.0 | 14.3 | 18.7 | 66.5% | 17.1% | 7.4% | 11.2% | 0.1 |
 GOOGL | $4.5T | 34.0 | 29.8 | 60.8 | 59.7% | 32.1% | 35.7% | 25.1% | 0.4 |
 META | $1.5T | 24.6 | 14.8 | 31.7 | 82.0% | 41.4% | 30.2% | 27.6% | 0.8 |
 TTD | $9B | 20.3 | 12.0 | 10.9 | 78.6% | 20.3% | 16.3% | 21.3% | 0.6 |
 DV | $2B | 34.4 | 10.5 | 9.2 | 82.2% | 10.6% | 4.6% | 6.4% | 0.7 |
| Communication Services Median | — | 15.3 | 9.6 | 11.4 | 48.5% | 1.6% | 2.0% | 2.6% | 3.6 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 21 years · Updated daily
Consensus-Based Analysis Tools
Intrinsic Valuation
DCF models, multiple analysis, and analyst estimates.
Check Valuation
Historical Returns
10-year return with dividends reinvested.
Calculate
DCA Calculator
See how regular investing compounds over time.
Run Numbers
Peer Comparison
Compare growth, multiples, and margins vs sector.
Compare
WPP — Frequently Asked Questions
Quick answers to the most common questions about buying WPP stock.
What is WPP plc's P/E ratio?
WPP plc's current P/E ratio is 5.6x. The historical average is 29.3x.
What is WPP plc's EV/EBITDA?
WPP plc's current EV/EBITDA is 3.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.2x.
What is WPP plc's ROE?
WPP plc's return on equity (ROE) is 14.3%. The historical average is 9.0%.
Is WPP stock overvalued?
Based on historical data, WPP plc is trading at a P/E of 5.6x. Compare with industry peers and growth rates for a complete picture.
What is WPP plc's dividend yield?
WPP plc's current dividend yield is 14.22% with a payout ratio of 78.4%.
What are WPP plc's profit margins?
WPP plc has 16.6% gross margin and 9.0% operating margin.
How much debt does WPP plc have?
WPP plc's Debt/EBITDA ratio is 3.5x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.