WPP Plc P/FCF
What is the P/FCF of WPP Plc?
The P/FCF of WPP Plc is 11.35
What is the definition of P/FCF?
Price to free cash flow (P/FCF) is a valuation metric that compares the company’s current share price to its free cash flow per share.
ttm (trailing twelve months)
Price to free cash flow (P/FCF) is a measure that value investors find useful to analyze a company’s finances in relation to its current stock price. It is a stricter measure than the price to cash flow ratio as it subtracts capital expenditures from cash flow.
Free cash flow relies heavily on the state of a company's cash from operations, which is in turn heavily influenced by the company's net income. Companies can manipulate their free cash flow by lengthening the time they take to pay their bills, shortening the time it takes to collect what's owed to them, and putting off buying inventory. It also depends on what items are considered capital expenditures and this can be different in case of different companies.
Lower values of P/FCF generally indicate a company that is undervalued and whose stock is relatively cheap in relation to its free cash flow. Conversely, higher P/FCF indicate that the company's stock is relatively overvalued. Value investors thus favor companies with low or decreasing price to free cash flow values that indicate high or increasing free cash flow totals and relatively low stock share prices.
It is best to compare price to free cash flow ratios between similar companies in the same industry. However, the P/FCF metric can also be viewed over a longer time frame to see if the company's cash flow to share price value is improving or declining.
P/FCF of companies in the Communication Services sector on LSE compared to WPP Plc
What does WPP Plc do?
WPP plc, a creative transformation company, provides communications, experience, commerce, and technology services in North America, the United Kingdom, Western Continental Europe, the Asia Pacific, Latin America, Africa, the Middle East, and Central and Eastern Europe. The company operates through three segments: Global Integrated Agencies, Public Relations, and Specialist Agencies. It engages in the planning and creation of marketing and branding campaigns; design and production of advertisements across all media; and provision of media buying services, including strategy and business development, media investment, data and technology, and content. The company also advises to clients who are seeking to communicate with a range of stakeholders from consumers to governments and the business and financial communities. WPP plc was founded in 1985 and is based in London, the United Kingdom.
Companies with p/fcf similar to WPP Plc
- Filtronic plc has P/FCF of 11.32
- Parkland Fuel has P/FCF of 11.32
- Phibro Animal Health has P/FCF of 11.32
- Renasant has P/FCF of 11.32
- abrdn Global Premier Properties Fund has P/FCF of 11.33
- Norwood has P/FCF of 11.33
- WPP Plc has P/FCF of 11.35
- Beam Communications has P/FCF of 11.36
- Vitasoy International has P/FCF of 11.36
- Impellam PLC has P/FCF of 11.36
- Lear has P/FCF of 11.37
- Canadian Utilities has P/FCF of 11.37
- Altabancorp has P/FCF of 11.37