WPP PLC Revenue vs. EBITDA

WPP Stock  USD 51.48  0.07  0.14%   
Based on the measurements of profitability obtained from WPP PLC's financial statements, WPP PLC ADR may not be well positioned to generate adequate gross income at the present time. It has a very high likelihood of underperforming in December. Profitability indicators assess WPP PLC's ability to earn profits and add value for shareholders.
 
Total Revenue  
First Reported
1987-03-31
Previous Quarter
3.6 B
Current Value
3.6 B
Quarterly Volatility
5.4 B
 
Black Monday
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, WPP PLC's EV To Sales is relatively stable compared to the past year. As of 11/22/2024, Operating Cash Flow Sales Ratio is likely to grow to 0.13, while Price To Sales Ratio is likely to drop 0.52. At this time, WPP PLC's Accumulated Other Comprehensive Income is relatively stable compared to the past year. As of 11/22/2024, Income Before Tax is likely to grow to about 586.3 M, while Net Income is likely to drop slightly above 104.9 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.160.1697
Notably Down
Slightly volatile
Operating Profit Margin0.0340.0358
Notably Down
Slightly volatile
For WPP PLC profitability analysis, we use financial ratios and fundamental drivers that measure the ability of WPP PLC to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well WPP PLC ADR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between WPP PLC's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of WPP PLC ADR over time as well as its relative position and ranking within its peers.
  
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Is Advertising space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of WPP PLC. If investors know WPP will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about WPP PLC listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.825
Dividend Share
0.394
Earnings Share
1.18
Revenue Per Share
13.826
Quarterly Revenue Growth
0.001
The market value of WPP PLC ADR is measured differently than its book value, which is the value of WPP that is recorded on the company's balance sheet. Investors also form their own opinion of WPP PLC's value that differs from its market value or its book value, called intrinsic value, which is WPP PLC's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because WPP PLC's market value can be influenced by many factors that don't directly affect WPP PLC's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between WPP PLC's value and its price as these two are different measures arrived at by different means. Investors typically determine if WPP PLC is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, WPP PLC's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

WPP PLC ADR EBITDA vs. Revenue Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining WPP PLC's current stock value. Our valuation model uses many indicators to compare WPP PLC value to that of its competitors to determine the firm's financial worth.
WPP PLC ADR is rated first in revenue category among its peers. It is rated first in ebitda category among its peers totaling about  0.13  of EBITDA per Revenue. The ratio of Revenue to EBITDA for WPP PLC ADR is roughly  7.77 . At this time, WPP PLC's Total Revenue is relatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value WPP PLC by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

WPP Revenue vs. Competition

WPP PLC ADR is rated first in revenue category among its peers. Market size based on revenue of Communication Services industry is at this time estimated at about 50.84 Billion. WPP PLC totals roughly 14.84 Billion in revenue claiming about 29% of stocks in Communication Services industry.

WPP EBITDA vs. Revenue

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.

WPP PLC

Revenue

 = 

Money Received

-

Discounts and Returns

 = 
14.84 B
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

WPP PLC

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
1.91 B
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.

WPP EBITDA Comparison

WPP PLC is currently under evaluation in ebitda category among its peers.

WPP PLC Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in WPP PLC, profitability is also one of the essential criteria for including it into their portfolios because, without profit, WPP PLC will eventually generate negative long term returns. The profitability progress is the general direction of WPP PLC's change in net profit over the period of time. It can combine multiple indicators of WPP PLC, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income186.6 M195.9 M
Operating IncomeB723.5 M
Income Before Tax346.3 M586.3 M
Total Other Income Expense Net-661.9 M-628.8 M
Net Income110.4 M104.9 M
Income Tax Expense149.1 M162.1 M
Net Income Applicable To Common Shares785.1 M809.3 M
Net Income From Continuing Ops197.2 M187.3 M
Interest Income114.4 M102.6 M
Net Interest Income-274.6 M-288.3 M
Change To Netincome406.2 M444.5 M
Net Income Per Share 0.10  0.10 
Income Quality 6.28  6.59 
Net Income Per E B T 0.32  0.30 

WPP Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on WPP PLC. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of WPP PLC position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the WPP PLC's important profitability drivers and their relationship over time.

Use WPP PLC in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if WPP PLC position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in WPP PLC will appreciate offsetting losses from the drop in the long position's value.

WPP PLC Pair Trading

WPP PLC ADR Pair Trading Analysis

The ability to find closely correlated positions to WPP PLC could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace WPP PLC when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back WPP PLC - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling WPP PLC ADR to buy it.
The correlation of WPP PLC is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as WPP PLC moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if WPP PLC ADR moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for WPP PLC can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your WPP PLC position

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Additional Tools for WPP Stock Analysis

When running WPP PLC's price analysis, check to measure WPP PLC's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy WPP PLC is operating at the current time. Most of WPP PLC's value examination focuses on studying past and present price action to predict the probability of WPP PLC's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move WPP PLC's price. Additionally, you may evaluate how the addition of WPP PLC to your portfolios can decrease your overall portfolio volatility.