Bull Rankings model

WPP plc (WPP) stock analysis

Advertising Agencies. Scored on the same transparent model behind the daily rankings.

★
WPP
WPP plc · Advertising Agencies
24.0Score
$25.38Oct 9 close$5.5B
1Y Target$23.83Analyst consensus · 3 analysts
5Y Target$41.68Compound horizon
10Y Target$74.50Long-dated conviction
FCF$1.2bTTM · 06/26
C+
FCF $1.2b — respectable but not differentiating · Trailing twelve months to 06/26 (operating cash flow − capex).
Rev-8.1%FY YoY
D
Revenue -8.1% — meaningful contraction · Latest fiscal year vs the prior one, from SEC filings — a trailing-twelve-month comparison couldn't be assembled from this company's filings.
D/E2.58
C
D/E 2.58 — more levered than most Communication Services peers (≈90th pctile)
P/S*0.3x
A
P/S 0.3x — cheapest decile in Communication Services (≈10th pctile)
PEG4.23
D
PEG 4.23 — very expensive; pricing in best-case scenarios

* P/S replaces P/E — no positive earnings to divide by

Targets: 1-year is analyst consensus where covered, 5- and 10-year are model estimates; the DCF is a cross-check, not a target. Methodology

Quality-growth score · 24
Quality39.4
Growth14.4
Value28.2
Why this score
  • Cut its dividend
  • Foreign reporter (GBP)
Entry · Margin of safety
52-week rangeNear 52-week high
9% off the 12-month high
vs DCF fair value70% belowest. fair value ~$85
What the price assumes: free cash flow shrinking 25% or more next year, then recovering toward 4% a year by year ten — vs a starting rate of ~-5% our model takes as the middle of three readings — analyst estimates, last year's revenue growth, and the company's own multi-year record.
Quality signals
ROIC3.9% · Creturn on invested capital — leads the quality score

Model-generatedFrom reported fundamentals, checked against the figures above · Editorial standards

Why now
Advertising Agencies · market cap $5.5b. 9% off the 52-week high of $27.78. Revenue -8% — in contraction; any catalyst that reverses this triggers re-rating. 3 sell-side analysts publish a mean 1-yr target of $23.83 (implying -6% upside).
Moat
Turnaround / out-of-favor name — GAAP-unprofitable for now, so the durability case is forward-looking: it rests on a recovery (margin normalization, a cyclical upturn or restructuring) or an un-monetized asset (IP / network effects / first-mover position) rather than on current reported results.
Risk
D/E 2.58 is elevated — limits strategic flexibility and raises refinancing exposure if rates stay higher for longer. Revenue contracting -8% — the operational turn is not yet visible in the top line. Currently unprofitable (margin -1.3%) — path to GAAP profitability is the core thesis risk.
Horizon
1-3 yr $23.83 (3-analyst consensus) — catalyst-driven; binary events dominate. 5 yr $41.68 — requires the platform / technology to reach commercial scale. 10 yr $74.50 — return distribution heavily skewed.

WPP vs the Top Picks average

PillarWPPBook avgDiff
Quality3983-44
Growth1489-75
Value2876-48

Average of today's Top 30 (mean score 82.6); size and sector limits also decide the book.

Trend
+8.3 over 82 daily scores
From 15.7 (Jun 22) → 24.0 (now)

One point per daily run; read From → To for the actual range.

WPP at a glance

THE BULL RANKINGS SCORECARD24.0/ 100 · BULL SCOREPEER MEDIANQUALITY39.4GROWTH14.4VALUE28.2Reverse-DCF · Price implies an outright decline from here.
PRICE vs OUR DCF FAIR VALUE$72.1$96.1 ▸FAIR-VALUE RANGE · ▸ BEYOND THE SCALE$25.4PRICEOur DCF fair value ~$85.4 · price $25.4 is 70% below it.
WHERE THIS SCORE SITS0255075100WPP 24.0Ranks above 13% of 1,709 companies on the quality-growth score.
PRICE IN ITS 52-WEEK RANGE$25.4LOW $14.8HIGH $27.8Trading at the 81st percentile of its 52-week range ($14.8–$27.8).

Same audited fundamentals as the score, unless a card says otherwise.

Analyst estimate revisions

30-day change+7.9%
90-day change+13.6%
Forward EPS estimate$3.77

Over the last 90 days, what analysts expect WPP to earn is materially higher (+13.6%). The estimate is derived from price and forward P/E captured at the same instant, so a moving share price does not move this number — only a changed forecast does.

Estimates move both ways and are not part of the Bull Rankings score. Biggest movers →

Shares to buy
78
Position size
$1,980
4.0% of portfolio
Stop price
$19.04
25% below $25.38
$ at risk if stopped
$494.91
budget $500.00 · 1% of portfolio

Math only: excludes commissions, slippage and gap risk. Inputs stay in your browser.

WPP plc (WPP): score, valuation & FAQ

WPP plc (WPP) is an Advertising Agencies company that scores 24 out of 100 on the Bull Rankings quality-growth model — a weak reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are P/S (A), while Rev (D) and PEG (D) rate weaker. On valuation, WPP sits about 70% below our discounted-cash-flow fair value (a margin of safety) — the current price implies free cash flow shrinking 25% or more next year, then recovering toward 4% a year by year ten.

Is WPP a good stock to buy?

Bull Rankings scores WPP 24 out of 100 on its quality-growth model, which is a weak reading. That is driven by P/S (A). A score is a quantitative screen of WPP plc's fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does WPP score 24 on Bull Rankings?

The score leans on quality at 39.4 out of 100, with growth the weakest pillar at 14.4 — the three combine geometrically, so a weak one cannot be papered over by a strong one. WPP earns its highest marks on P/S (A), and is held back by Rev (D) and PEG (D). Each signal is graded against sector-aware thresholds rather than one absolute bar, so WPP is measured against Advertising Agencies peers, not against the market as a whole.

Is WPP overvalued or undervalued?

Based on $25.38, WPP sits about 70% below our discounted-cash-flow fair value (a margin of safety) — the current price implies free cash flow shrinking 25% or more next year, then recovering toward 4% a year by year ten. Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in WPP?

D/E 2.58 is elevated — limits strategic flexibility and raises refinancing exposure if rates stay higher for longer. Revenue contracting -8% — the operational turn is not yet visible in the top line. Currently unprofitable (margin -1.3%) — path to GAAP profitability is the core thesis risk.

New to these metrics? See the guides and the methodology.

More Advertising stocks by score

All Communication Services rankings →

Analyze another ticker →