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Is this Large Market Cap Stock target price reasonable for WPP plc (NASDAQ:WPPGY)?

The company in question is, WPP plc (NASDAQ:WPPGY) currently with a stock price of 120.34 (1.63% today). The market cap for WPP plc is 30229.41, and is in the sector Services, and Advertising Agencies industry. The target price for WPP plc is 133.39. Currently WPP plc is trading with a P/E of 28.22, and a forward P/E of 73.83. Average volume for WPP plc is 140.34 and so far today it is 248000.

Performance in the last year for WPP plc has been 23.22%. For EPS growth, WPP plc has seen a growth of 9.70%, and is looking to grow in the next year to 12.34%. More long term stats show that EPS growth has been 14.00% over the last five years and could be 10.60% for the next five years. WPP plc has seen sales growth quarter over quarter at 7.90%, with EPS growth quarter over quarter at -64.80%. The 20-day simple moving average is 7.81%, with the 200-day simple moving average coming to 8.77%.

Since the IPO date for WPP plc on the 3/26/1990, WPP plc has seen performance year to date to be 6.76%. With WPP plc trading at 120.34, the dividend yield is 2.83%, and the EPS is 4.27.

So could WPP plc, be undervalued? Well as said before P/E is 28.22. The PEG is 2.66, P/S is 1.76 and the P/B is at 2.73. The P/cash is *TBA, with P/free cash flow at 29.9.

WPP plc ability to deal with debt shows that the current ratio is 0.9, and the quick ratio is 0.9. This is with long term debt/equity at 0.63, and total debt/equity at 0.75.

In terms of margins, WPP plc has a gross margin of 85.70%, an operating margin of 10.60% and a profit margin of 6.50%.Payout ratio for WPP plc is 73.80%. Return on assets come to *TBA with return on investment coming to 10.30%.

Insider ownership for WPP plc, is at 2.80% and institutional ownership comes to 4.90%. Outstanding shares are at 251.2. While shares float is 248.69. The float short is currently 0.12%, and short ratio is 2.05.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Peter Clarke

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