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What do the Fundamentals Predict for WPP PLC (WPP) Stock?

Friday, August 19, 2022 10:16 AM | InvestorsObserver Analysts
What do the Fundamentals Predict for WPP PLC (WPP) Stock?

WPP PLC (WPP) receives a strong valuation ranking of 98 from InvestorsObserver data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings, and growth rate. WPP has a better value than 98% of stocks based on these valuation analytics. Investors primarily focused on buy-and-hold strategies will find the valuation ranking relevant to their goals when making investment decisions.

Valuation Rank - 98
WPP gets a 98 Valuation Rank today. Find out what this means to you and get the rest of the rankings on WPP!

Metrics Analysis

WPP's trailing-12-month Price to Earnings (PE) ratio of 14.3 puts it around the historical average of roughly 15. WPP is a average value at its current trading price as investors are paying around what its worth in relation to the company's earnings. WPP's trailing-12-month earnings per share (EPS) of 5.37 does justify what it is currently trading at in the market. Trailing PE ratios, however, do not factor in a company's projected growth rate, resulting in some firms having high PE ratios due to high growth potentially enticing investors even if current earnings are low.
WPP currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 1.04. The market is currently fairly valuing WPP in relation to its projected growth due to the PEG ratio being around the fair market value of 1. WPP's PEG comes from its forward price to earnings ratio being divided by its growth rate. Because PEG ratios include more fundamentals of a company's overall health with additional focus on the future, they are one of the most used valuation metrics by analysts.

Summary

All together these valuation metrics paint a pretty adequate picture for WPP at its current price due to a fairly valued PEG ratio despite strong growth. The PE and PEG for WPP are around the average of the market resulting in a valuation score of 98. Click Here to get the full Report on WPP PLC (WPP) stock.

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