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Is WPP plc (LON:WPP) Potentially Underrated?

Attractive stocks have exceptional fundamentals. In the case of WPP plc (LSE:WPP), there’s is a dependable dividend-paying company that has been a rockstar for income investors, currently trading at an attractive share price. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on WPP here.

Established dividend payer and good value

WPP’s shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of WPP’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the media industry, WPP is also trading below its peers, relative to earnings generated. This supports the theory that WPP is potentially underpriced.

LSE:WPP Intrinsic Value Jun 19th 18
LSE:WPP Intrinsic Value Jun 19th 18

WPP’s reputation for being one of the best dividend payers in the market is supported by the fact that it has been steadily growing its dividend payments over the past ten years and currently is one of the top yielding companies on the markets, at 5.00%.

LSE:WPP Historical Dividend Yield Jun 19th 18
LSE:WPP Historical Dividend Yield Jun 19th 18

Next Steps:

For WPP, I’ve compiled three pertinent factors you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for WPP’s future growth? Take a look at our free research report of analyst consensus for WPP’s outlook.

  2. Historical Performance: What has WPP’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of WPP? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.

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