WPP PLC
NYSE:WPP
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EV/EBIT
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Valuation Scenarios
If EV/EBIT returns to its 3-Year Average (12.2), the stock would be worth $14.01 (21% downside from current price).
| Scenario | EV/EBIT Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 15.5 | $17.77 |
0%
|
| 3-Year Average | 12.2 | $14.01 |
-21%
|
| 5-Year Average | 11.3 | $12.99 |
-27%
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| Industry Average | 0 | $0.02 |
-100%
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| Country Average | 0 | $0.03 |
-100%
|
Forward EV/EBIT
Today’s price vs future ebit
| Today's Enterprise Value | EBIT | Forward EV/EBIT | ||
|---|---|---|---|---|
|
$5.7B
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/ |
Jan 2026
£382m
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= |
|
|
$5.7B
|
/ |
Dec 2026
£1.1B
|
= |
|
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$5.7B
|
/ |
Dec 2027
£1.2B
|
= |
|
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$5.7B
|
/ |
Dec 2028
£1.3B
|
= |
|
Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.
Peer Comparison
| Market Cap | EV/EBIT | P/E | ||||
|---|---|---|---|---|---|---|
| UK |
|
WPP PLC
NYSE:WPP
|
2.8B USD | 15.5 | -13.1 | |
| US |
|
Omnicom Group Inc
NYSE:OMC
|
24.1B USD | 8.7 | -441.3 | |
| FR |
|
Publicis Groupe SA
PAR:PUB
|
19.5B EUR | 7.6 | 11.8 | |
| UK |
|
Informa PLC
LSE:INF
|
10.2B GBP | 16.4 | 931.7 | |
| CN |
F
|
Focus Media Information Technology Co Ltd
SZSE:002027
|
90B CNY | 13.8 | 16.5 | |
| CN |
|
BlueFocus Intelligent Communications Group Co Ltd
SZSE:300058
|
68.2B CNY | 235.8 | 303.6 | |
| US |
|
Interpublic Group of Companies Inc
NYSE:IPG
|
9.2B USD | 7.4 | 16.8 | |
| CN |
|
Leo Group Co Ltd
SZSE:002131
|
53.2B CNY | 437.6 | 108.8 | |
| HK |
|
QMMM Holdings Ltd
NASDAQ:QMMM
|
6.8B USD | -2 296.7 | -2 306.1 | |
| JP |
|
Dentsu Group Inc
TSE:4324
|
779.8B JPY | 7 | -2.4 | |
| FR |
|
JCDecaux SA
OTC:JCDXF
|
4.9B USD | 13.5 | 16.1 |
Market Distribution
| Min | 0 |
| 30th Percentile | 0 |
| Median | 0 |
| 70th Percentile | 0.1 |
| Max | 1 015 |
Other Multiples
WPP PLC
Glance View
In the dynamic world of global advertising, WPP PLC has established itself as an indispensable powerhouse. Emerging from the remnants of a previously obscure company, Wire and Plastic Products, WPP transformed into a dynamic entity that orchestrates integrated communication and marketing services worldwide. Operating under an expansive umbrella, it comprises a multitude of subsidiary companies, each specializing in different facets of marketing, from traditional advertising to cutting-edge digital strategies, market research, and public relations. Through its reach and diversity, WPP crafts comprehensive solutions for its clients, tailoring its services to meet the ever-evolving demands of consumer engagement in the modern era. WPP makes money by leveraging its extensive network to provide a symbiosis of creative and media solutions. By uniting the expertise of its various subsidiaries, WPP offers seamless, end-to-end marketing campaigns that resonate with audiences globally. Through both agency fees and performance-based pricing models, the company draws revenue from the creation of compelling content and deployment across media platforms. Furthermore, its investment in data analytics and technological innovation ensures that WPP not only reacts to industry trends but arguably anticipates them, enhancing the effectiveness and efficiency of its services. In this blend of creativity, technology, and strategic execution, WPP cements its role as a vital conduit between brands and consumers, navigating both the digital and traditional landscapes of advertising.