WPP (LSE:WPP) EBIT: £483 Mil (TTM As of Dec. 2025)


LSE:WPP WPP PLC LSE:WPP
49 GF Score
Price £2.54
GF Value £6.21
Valuation Possible Value Trap
! 6 Warning Signs
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What is WPP EBIT?

WPP LSE:WPP -0.31% 49 EBIT is £483 Mil as of Dec. 2025. GuruFocus rates LSE:WPP with a GF Score™ of 49/100 and a GF Value™ of £6.21 (Possible Value Trap). The stock has 6 warning signs investors should review.

WPP's earnings before interest and taxes (EBIT) for the six months ended in Dec. 2025 was £207 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2025 was £483 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. WPP's annualized ROC % for the quarter that ended in Dec. 2025 was 0.00%. WPP's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 19.35%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. WPP's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 6.79%.

WPP  (LSE:WPP) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

WPP's annualized ROC % for the quarter that ended in Dec. 2025 is calculated as:

ROC % (Q: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2025 ) + Invested Capital (Q: Dec. 2025 ))/ count )
=322 * ( 1 - 100% )/( (14054 + 13138)/ 2 )
=0/13596
=0.00 %

where

Invested Capital(Q: Jun. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=23394 - 11249 - ( 1437 - max(0, 13760 - 11851+1437))
=14054

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=24075 - 12602 - ( 2694 - max(0, 14835 - 13170+2694))
=13138

Note: The Operating Income data used here is two times the semi-annual (Dec. 2025) data.

2. Joel Greenblatt's definition of Return on Capital:

WPP's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2025 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2025  Q: Dec. 2025
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=414/( ( (2237 + max(-5136, 0)) + (2041 + max(-6989, 0)) )/ 2 )
=414/( ( 2237 + 2041 )/ 2 )
=414/2139
=19.35 %

where Working Capital is:

Working Capital(Q: Jun. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(7366 + 0 + 100) - (11249 + 0 + 1353)
=-5136

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(6089 + 0 + 712) - (12602 + 0 + 1188)
=-6989

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

WPP's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Dec. 2025 )
=483/7111.609
=6.79 %

* 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 EBIT Related Terms

WPP EBIT Historical Data

* Premium members only.

The historical data trend for WPP's EBIT 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.

WPP EBIT Chart

WPP Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1,234.40 1,519.00 735.00 1,448.00 483.00

WPP Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
EBIT 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 300.00 548.00 900.00 276.00 207.00

LSE:WPP vs APP, OMC, TTD: EBIT Comparison

For the Advertising Agencies subindustry, WPP's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, WPP's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where WPP's EV-to-EBIT falls into.


LSE:WPP
49GF Score
WPP PLC LSE:WPP
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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WPP EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Dec. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was £483 Mil.

* 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.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of £483 Mil mean?
WPP (LSE:WPP) has a EBIT of £483 Mil as of Dec. 2025. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on WPP.
Is WPP's EBIT too high?
WPP's current EBIT is £483 Mil. Overall, WPP has a GF Score™ of 49/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does WPP's EBIT compare to APP and OMC?
WPP's EBIT of £483 Mil can be compared against companies in the Media - Diversified industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Media - Diversified company?
A good EBIT depends on the Media - Diversified industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on WPP. WPP's current EBIT is £483 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is WPP stock overvalued right now?
Based on GuruFocus' analysis, WPP (LSE:WPP) is currently considered Possible Value Trap. The stock's GF Value™ is £6.21, compared to a current price of £2.54 — trading 59.1% below its estimated fair value. The current EBIT is £483 Mil. WPP's overall GF Score™ is 49/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For WPP (LSE:WPP), the current EBIT is £483 Mil as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is WPP (LSE:WPP) Overvalued in 2026?

Based on GuruFocus' analysis, WPP stock appears to be undervalued. The current stock price of £2.54 is trading 59.1% below its estimated GF Value™ of £6.21. GuruFocus considers WPP to be Possible Value Trap.

Key valuation signals for LSE:WPP:

  • EBIT: £483 Mil
  • GF Value™: £6.21 vs. price of £2.54 (59.1% below fair value)
  • GF Score™: 49/100 with 6 warning signs

No single metric tells the full story. See the LSE:WPP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

WPP Business Description

Address 18 Upper Ground, Sea Containers, London, GBR, SE1 9GL
Headquartered in the United Kingdom, WPP is the world's largest ad holding company 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. WPP is the largest media buying entity in the world.
49GF Score

Get the complete analysis for LSE:WPP

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

£2.54
Price
£6.21
GF Value