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WPP (WPPGF) Cyclically Adjusted PB Ratio : 1.00 (As of May. 31, 2025)


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What is WPP Cyclically Adjusted PB Ratio?

As of today (2025-05-31), WPP's current share price is $7.96. WPP's Cyclically Adjusted Book per Share for the fiscal year that ended in Dec24 was $8.00. WPP's Cyclically Adjusted PB Ratio for today is 1.00.

The historical rank and industry rank for WPP's Cyclically Adjusted PB Ratio or its related term are showing as below:

WPPGF' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 0.73   Med: 1.49   Max: 3.49
Current: 0.95

During the past 13 years, WPP's highest Cyclically Adjusted PB Ratio was 3.49. The lowest was 0.73. And the median was 1.49.

WPPGF's Cyclically Adjusted PB Ratio is ranked better than
56.7% of 679 companies
in the Media - Diversified industry
Industry Median: 1.08 vs WPPGF: 0.95

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.

WPP's adjusted book value per share data of for the fiscal year that ended in Dec24 was $4.072. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is $8.00 for the trailing ten years ended in Dec24.

Shiller PE for Stocks: The True Measure of Stock Valuation


WPP Cyclically Adjusted PB Ratio Historical Data

The historical data trend for WPP's Cyclically Adjusted PB Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

WPP Cyclically Adjusted PB Ratio Chart

WPP Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.24 1.74 1.23 1.15 1.31

WPP Semi-Annual Data
Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
Cyclically Adjusted PB Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.23 - 1.15 - 1.31

Competitive Comparison of WPP's Cyclically Adjusted PB Ratio

For the Advertising Agencies subindustry, WPP's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


WPP's Cyclically Adjusted PB Ratio Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, WPP's Cyclically Adjusted PB Ratio distribution charts can be found below:

* The bar in red indicates where WPP's Cyclically Adjusted PB Ratio falls into.


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WPP Cyclically Adjusted PB Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.

WPP's Cyclically Adjusted PB Ratio for today is calculated as

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=7.96/8.00
=1.00

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

WPP's Cyclically Adjusted Book per Share for the fiscal year that ended in Dec24 is calculated as:

For example, WPP's adjusted Book Value per Share data for the fiscal year that ended in Dec24 was:

Adj_Book=Book Value per Share/CPI of Dec24 (Change)*Current CPI (Dec24)
=4.072/135.1000*135.1000
=4.072

Current CPI (Dec24) = 135.1000.

WPP Annual Data

Book Value per Share CPI Adj_Book
201512 8.830 100.400 11.882
201612 9.089 102.200 12.015
201712 10.019 105.000 12.891
201812 9.390 107.100 11.845
201912 8.261 108.500 10.286
202012 5.191 109.400 6.410
202112 4.167 114.700 4.908
202212 4.191 125.300 4.519
202312 3.978 130.500 4.118
202412 4.072 135.100 4.072

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


WPP  (OTCPK:WPPGF) Cyclically Adjusted PB Ratio Explanation

Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.


WPP Cyclically Adjusted PB Ratio Related Terms

Thank you for viewing the detailed overview of WPP's Cyclically Adjusted PB Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


WPP Business Description

Address
18 Upper Ground, Sea Containers, London, GBR, SE1 9GL
Headquartered in the United Kingdom, WPP is one of the world's largest ad holding companies based on annual revenue. Its services, which include traditional and digital advertising, public relations, and consulting, are provided worldwide, with over 70% of its revenue coming from more developed regions such as North America, the UK, and Western Europe.