Intrinsic value of WPP ADR - WPP

Previous Close

$55.51

  Intrinsic Value

$6,378

stock screener

  Rating & Target

str. buy

+999%

Previous close

$55.51

 
Intrinsic value

$6,378

 
Up/down potential

+999%

 
Rating

str. buy

We calculate the intrinsic value of WPP stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 0.9

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  16.10
  14.99
  13.99
  13.09
  12.28
  11.55
  10.90
  10.31
  9.78
  9.30
  8.87
  8.48
  8.13
  7.82
  7.54
  7.29
  7.06
  6.85
  6.67
  6.50
  6.35
  6.21
  6.09
  5.98
  5.89
  5.80
  5.72
  5.65
  5.58
  5.52
Revenue, $m
  23,950
  27,540
  31,393
  35,503
  39,864
  44,470
  49,317
  54,401
  59,721
  65,275
  71,065
  77,094
  83,365
  89,886
  96,663
  103,705
  111,023
  118,629
  126,537
  134,762
  143,318
  152,225
  161,500
  171,164
  181,238
  191,744
  202,706
  214,150
  226,101
  238,588
Variable operating expenses, $m
  20,243
  23,016
  25,991
  29,164
  32,532
  36,088
  39,831
  43,756
  47,864
  52,152
  54,873
  59,528
  64,370
  69,405
  74,638
  80,076
  85,726
  91,600
  97,706
  104,056
  110,663
  117,540
  124,702
  132,164
  139,942
  148,055
  156,519
  165,355
  174,584
  184,226
Fixed operating expenses, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  20,243
  23,016
  25,991
  29,164
  32,532
  36,088
  39,831
  43,756
  47,864
  52,152
  54,873
  59,528
  64,370
  69,405
  74,638
  80,076
  85,726
  91,600
  97,706
  104,056
  110,663
  117,540
  124,702
  132,164
  139,942
  148,055
  156,519
  165,355
  174,584
  184,226
Operating income, $m
  3,707
  4,525
  5,403
  6,339
  7,333
  8,382
  9,487
  10,645
  11,857
  13,123
  16,192
  17,566
  18,995
  20,481
  22,025
  23,629
  25,297
  27,030
  28,832
  30,706
  32,655
  34,685
  36,798
  39,000
  41,295
  43,689
  46,187
  48,794
  51,517
  54,363
EBITDA, $m
  7,713
  8,869
  10,110
  11,434
  12,838
  14,322
  15,883
  17,520
  19,233
  21,022
  22,887
  24,828
  26,848
  28,948
  31,130
  33,398
  35,755
  38,205
  40,752
  43,400
  46,156
  49,024
  52,011
  55,124
  58,368
  61,751
  65,282
  68,967
  72,816
  76,838
Interest expense (income), $m
  0
  -502
  -428
  -348
  -262
  -171
  -73
  29
  137
  250
  369
  492
  621
  755
  895
  1,040
  1,191
  1,348
  1,511
  1,680
  1,856
  2,039
  2,230
  2,428
  2,635
  2,850
  3,074
  3,308
  3,552
  3,807
  4,073
Earnings before tax, $m
  4,208
  4,952
  5,750
  6,601
  7,503
  8,456
  9,457
  10,508
  11,607
  12,754
  15,700
  16,945
  18,240
  19,586
  20,985
  22,438
  23,949
  25,519
  27,152
  28,849
  30,616
  32,455
  34,370
  36,365
  38,446
  40,615
  42,879
  45,242
  47,711
  50,290
Tax expense, $m
  1,136
  1,337
  1,553
  1,782
  2,026
  2,283
  2,554
  2,837
  3,134
  3,444
  4,239
  4,575
  4,925
  5,288
  5,666
  6,058
  6,466
  6,890
  7,331
  7,789
  8,266
  8,763
  9,280
  9,819
  10,380
  10,966
  11,577
  12,215
  12,882
  13,578
Net income, $m
  3,072
  3,615
  4,198
  4,819
  5,477
  6,173
  6,904
  7,671
  8,473
  9,310
  11,461
  12,370
  13,315
  14,297
  15,319
  16,380
  17,483
  18,629
  19,821
  21,060
  22,350
  23,692
  25,090
  26,547
  28,065
  29,649
  31,302
  33,027
  34,829
  36,712

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  -3,325
  -3,823
  -4,358
  -4,928
  -5,534
  -6,173
  -6,846
  -7,552
  -8,290
  -9,061
  -9,865
  -10,702
  -11,572
  -12,477
  -13,418
  -14,395
  -15,411
  -16,467
  -17,565
  -18,706
  -19,894
  -21,131
  -22,418
  -23,760
  -25,158
  -26,616
  -28,138
  -29,727
  -31,386
  -33,119
Adjusted assets (=assets-cash), $m
  -3,325
  -3,823
  -4,358
  -4,928
  -5,534
  -6,173
  -6,846
  -7,552
  -8,290
  -9,061
  -9,865
  -10,702
  -11,572
  -12,477
  -13,418
  -14,395
  -15,411
  -16,467
  -17,565
  -18,706
  -19,894
  -21,131
  -22,418
  -23,760
  -25,158
  -26,616
  -28,138
  -29,727
  -31,386
  -33,119
Revenue / Adjusted assets
  -7.203
  -7.204
  -7.204
  -7.204
  -7.203
  -7.204
  -7.204
  -7.204
  -7.204
  -7.204
  -7.204
  -7.204
  -7.204
  -7.204
  -7.204
  -7.204
  -7.204
  -7.204
  -7.204
  -7.204
  -7.204
  -7.204
  -7.204
  -7.204
  -7.204
  -7.204
  -7.204
  -7.204
  -7.204
  -7.204
Average production assets, $m
  11,281
  12,971
  14,786
  16,722
  18,776
  20,946
  23,228
  25,623
  28,128
  30,745
  33,472
  36,311
  39,265
  42,336
  45,528
  48,845
  52,292
  55,874
  59,599
  63,473
  67,503
  71,698
  76,067
  80,618
  85,363
  90,311
  95,475
  100,865
  106,494
  112,375
Working capital, $m
  11,975
  13,770
  15,697
  17,752
  19,932
  22,235
  24,659
  27,201
  29,860
  32,638
  35,533
  38,547
  41,683
  44,943
  48,331
  51,852
  55,512
  59,315
  63,269
  67,381
  71,659
  76,112
  80,750
  85,582
  90,619
  95,872
  101,353
  107,075
  113,051
  119,294
Total debt, $m
  -7,921
  -6,441
  -4,852
  -3,158
  -1,360
  539
  2,537
  4,633
  6,826
  9,116
  11,503
  13,989
  16,574
  19,263
  22,056
  24,960
  27,977
  31,113
  34,373
  37,764
  41,291
  44,963
  48,787
  52,771
  56,924
  61,256
  65,775
  70,493
  75,420
  80,568
Total liabilities, $m
  9,874
  11,354
  12,943
  14,637
  16,435
  18,334
  20,332
  22,428
  24,621
  26,911
  29,298
  31,784
  34,369
  37,057
  39,851
  42,754
  45,772
  48,907
  52,168
  55,558
  59,086
  62,758
  66,582
  70,566
  74,719
  79,050
  83,570
  88,288
  93,215
  98,363
Total equity, $m
  -13,199
  -15,177
  -17,300
  -19,565
  -21,969
  -24,507
  -27,178
  -29,980
  -32,911
  -35,972
  -39,163
  -42,485
  -45,941
  -49,535
  -53,269
  -57,150
  -61,183
  -65,375
  -69,733
  -74,265
  -78,980
  -83,889
  -89,000
  -94,325
  -99,877
  -105,667
  -111,708
  -118,014
  -124,601
  -131,482
Total liabilities and equity, $m
  -3,325
  -3,823
  -4,357
  -4,928
  -5,534
  -6,173
  -6,846
  -7,552
  -8,290
  -9,061
  -9,865
  -10,701
  -11,572
  -12,478
  -13,418
  -14,396
  -15,411
  -16,468
  -17,565
  -18,707
  -19,894
  -21,131
  -22,418
  -23,759
  -25,158
  -26,617
  -28,138
  -29,726
  -31,386
  -33,119
Debt-to-equity ratio
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
Adjusted equity ratio
  3.970
  3.970
  3.970
  3.970
  3.970
  3.970
  3.970
  3.970
  3.970
  3.970
  3.970
  3.970
  3.970
  3.970
  3.970
  3.970
  3.970
  3.970
  3.970
  3.970
  3.970
  3.970
  3.970
  3.970
  3.970
  3.970
  3.970
  3.970
  3.970
  3.970

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  3,072
  3,615
  4,198
  4,819
  5,477
  6,173
  6,904
  7,671
  8,473
  9,310
  11,461
  12,370
  13,315
  14,297
  15,319
  16,380
  17,483
  18,629
  19,821
  21,060
  22,350
  23,692
  25,090
  26,547
  28,065
  29,649
  31,302
  33,027
  34,829
  36,712
Depreciation, amort., depletion, $m
  4,006
  4,345
  4,708
  5,095
  5,506
  5,939
  6,396
  6,875
  7,376
  7,899
  6,694
  7,262
  7,853
  8,467
  9,106
  9,769
  10,458
  11,175
  11,920
  12,695
  13,501
  14,340
  15,213
  16,124
  17,073
  18,062
  19,095
  20,173
  21,299
  22,475
Funds from operations, $m
  7,079
  7,960
  8,905
  9,914
  10,983
  12,112
  13,300
  14,546
  15,849
  17,210
  18,155
  19,632
  21,168
  22,765
  24,424
  26,149
  27,941
  29,804
  31,741
  33,755
  35,850
  38,032
  40,303
  42,670
  45,138
  47,711
  50,397
  53,200
  56,128
  59,187
Change in working capital, $m
  1,661
  1,795
  1,927
  2,055
  2,180
  2,303
  2,423
  2,542
  2,660
  2,777
  2,895
  3,014
  3,136
  3,260
  3,388
  3,521
  3,659
  3,803
  3,954
  4,112
  4,278
  4,453
  4,638
  4,832
  5,037
  5,253
  5,481
  5,722
  5,976
  6,244
Cash from operations, $m
  5,418
  6,165
  6,979
  7,859
  8,803
  9,809
  10,877
  12,004
  13,189
  14,433
  15,260
  16,618
  18,032
  19,505
  21,036
  22,628
  24,282
  26,001
  27,787
  29,643
  31,572
  33,578
  35,666
  37,838
  40,101
  42,458
  44,915
  47,478
  50,152
  52,943
Maintenance CAPEX, $m
  -1,943
  -2,256
  -2,594
  -2,957
  -3,344
  -3,755
  -4,189
  -4,646
  -5,125
  -5,626
  -6,149
  -6,694
  -7,262
  -7,853
  -8,467
  -9,106
  -9,769
  -10,458
  -11,175
  -11,920
  -12,695
  -13,501
  -14,340
  -15,213
  -16,124
  -17,073
  -18,062
  -19,095
  -20,173
  -21,299
New CAPEX, $m
  -1,566
  -1,691
  -1,815
  -1,936
  -2,054
  -2,169
  -2,283
  -2,395
  -2,505
  -2,616
  -2,727
  -2,840
  -2,954
  -3,071
  -3,192
  -3,317
  -3,447
  -3,583
  -3,725
  -3,874
  -4,030
  -4,195
  -4,369
  -4,552
  -4,745
  -4,948
  -5,163
  -5,390
  -5,629
  -5,881
Cash from investing activities, $m
  -3,509
  -3,947
  -4,409
  -4,893
  -5,398
  -5,924
  -6,472
  -7,041
  -7,630
  -8,242
  -8,876
  -9,534
  -10,216
  -10,924
  -11,659
  -12,423
  -13,216
  -14,041
  -14,900
  -15,794
  -16,725
  -17,696
  -18,709
  -19,765
  -20,869
  -22,021
  -23,225
  -24,485
  -25,802
  -27,180
Free cash flow, $m
  1,909
  2,218
  2,570
  2,966
  3,404
  3,884
  4,405
  4,963
  5,559
  6,191
  6,384
  7,084
  7,816
  8,580
  9,377
  10,205
  11,066
  11,960
  12,887
  13,849
  14,847
  15,883
  16,958
  18,074
  19,233
  20,437
  21,690
  22,993
  24,350
  25,763
Issuance/(repayment) of debt, $m
  1,369
  1,480
  1,589
  1,694
  1,798
  1,899
  1,998
  2,096
  2,193
  2,290
  2,387
  2,485
  2,586
  2,688
  2,794
  2,903
  3,017
  3,136
  3,260
  3,391
  3,528
  3,672
  3,824
  3,984
  4,153
  4,331
  4,519
  4,718
  4,927
  5,148
Issuance/(repurchase) of shares, $m
  -1,830
  -1,978
  -2,123
  -2,265
  -2,403
  -2,538
  -2,671
  -2,802
  -2,931
  -3,061
  -3,191
  -3,322
  -3,456
  -3,593
  -3,735
  -3,881
  -4,033
  -4,192
  -4,358
  -4,532
  -4,715
  -4,908
  -5,111
  -5,326
  -5,551
  -5,790
  -6,041
  -6,306
  -6,586
  -6,881
Cash from financing (excl. dividends), $m  
  -461
  -498
  -534
  -571
  -605
  -639
  -673
  -706
  -738
  -771
  -804
  -837
  -870
  -905
  -941
  -978
  -1,016
  -1,056
  -1,098
  -1,141
  -1,187
  -1,236
  -1,287
  -1,342
  -1,398
  -1,459
  -1,522
  -1,588
  -1,659
  -1,733
Total cash flow (excl. dividends), $m
  1,448
  1,719
  2,035
  2,395
  2,799
  3,245
  3,732
  4,258
  4,821
  5,420
  5,581
  6,247
  6,945
  7,675
  8,436
  9,228
  10,050
  10,904
  11,789
  12,707
  13,659
  14,646
  15,670
  16,732
  17,834
  18,979
  20,168
  21,405
  22,691
  24,030
Retained Cash Flow (-), $m
  1,830
  1,978
  2,123
  2,265
  2,403
  2,538
  2,671
  2,802
  2,931
  3,061
  3,191
  3,322
  3,456
  3,593
  3,735
  3,881
  4,033
  4,192
  4,358
  4,532
  4,715
  4,908
  5,111
  5,326
  5,551
  5,790
  6,041
  6,306
  6,586
  6,881
Prev. year cash balance distribution, $m
  24,197
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  27,475
  3,698
  4,158
  4,660
  5,202
  5,783
  6,403
  7,060
  7,752
  8,481
  8,771
  9,569
  10,402
  11,269
  12,171
  13,109
  14,083
  15,096
  16,147
  17,240
  18,375
  19,555
  20,782
  22,058
  23,386
  24,769
  26,209
  27,711
  29,277
  30,911
Discount rate, %
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
  26,342
  3,385
  3,619
  3,837
  4,032
  4,197
  4,326
  4,412
  4,453
  4,446
  4,165
  4,084
  3,955
  3,783
  3,573
  3,331
  3,064
  2,780
  2,486
  2,191
  1,901
  1,623
  1,362
  1,123
  910
  723
  563
  429
  320
  233
Current shareholders' claim on cash, %
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

FINANCIAL RATIOS  of  WPP ADR (WPP)

Valuation Ratios
P/E Ratio 0
Price to Sales 0
Price to Book 0
Price to Tangible Book
Price to Cash Flow 0
Price to Free Cash Flow 0
Growth Rates
Sales Growth Rate -100%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate NaN%
Cap. Spend. - 3 Yr. Gr. Rate NaN%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 0%
Total Debt to Equity 0%
Interest Coverage 0
Management Effectiveness
Return On Assets 0%
Ret/ On Assets - 3 Yr. Avg. 0%
Return On Total Capital 0%
Ret/ On T. Cap. - 3 Yr. Avg. 0%
Return On Equity 0%
Return On Equity - 3 Yr. Avg. 0%
Asset Turnover 0
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 0%
EBITDA Margin - 3 Yr. Avg. 0%
Operating Margin 0%
Oper. Margin - 3 Yr. Avg. 0%
Pre-Tax Margin 0%
Pre-Tax Margin - 3 Yr. Avg. 0%
Net Profit Margin 0%
Net Profit Margin - 3 Yr. Avg. 0%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0%
Payout Ratio 0%

WPP stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the WPP stock intrinsic value calculation we used $20628.9189189 million for the last fiscal year's total revenue generated by WPP ADR. The default revenue input number comes from 0001 income statement of WPP ADR. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our WPP stock valuation model: a) initial revenue growth rate of 16.1% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for WPP is calculated based on our internal credit rating of WPP ADR, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of WPP ADR.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of WPP stock the variable cost ratio is equal to 85.7%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for WPP stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for WPP ADR.

Corporate tax rate of 27% is the nominal tax rate for WPP ADR. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the WPP stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for WPP are equal to 47.1%.

Life of production assets of 0 years is the average useful life of capital assets used in WPP ADR operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for WPP is equal to 50%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $12828.6486486 million for WPP ADR - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 16.64 million for WPP ADR is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of WPP ADR at the current share price and the inputted number of shares is $0.9 billion.

COMPANY NEWS

▶ PRESS DIGEST- Financial Times - Nov 9   [Nov-08-18 08:28PM  Reuters]
▶ Heres How P/E Ratios Can Help Us Understand WPP plc (LON:WPP)   [Oct-28-18 03:07AM  Simply Wall St.]
▶ [$$] WPP Dives After World's No. 1 Ad Group Cuts Guidance   [12:13PM  The Wall Street Journal]
▶ WPP Third Quarter Trading Update 2018   [07:00AM  Business Wire]
▶ WPP to Sell Stake in Market-Research Business Kantar Group   [Oct-24-18 03:11PM  The Wall Street Journal]
▶ Kristen Lisanti Joins BCW as Chief Culture Officer   [Oct-18-18 01:17PM  Business Wire]
▶ United Airlines restructures media agency partnerships in loss for WPP   [Oct-11-18 01:22PM  American City Business Journals]
▶ BCW Opens Shenzhen Office   [12:05AM  Business Wire]
▶ Ford Taps Omnicoms BBDO as Its Lead Creative Ad Agency   [Oct-08-18 08:43PM  The Wall Street Journal]
▶ Ford Taps Omnicom's BBDO for Key Ad Role   [03:06PM  The Wall Street Journal]
▶ Stocks That Fell to 3-Year Lows in the Week of Oct. 5   [Oct-07-18 11:36AM  GuruFocus.com]
▶ New Strong Sell Stocks for September 28th   [Sep-28-18 07:56AM  Zacks]
▶ [$$] WPP Consolidates Agencies as New CEOs Battle Plan Takes Shape   [Sep-26-18 07:44PM  The Wall Street Journal]
▶ Sears takes a dive, Michael Kors slips, Pandora soars   [Sep-24-18 11:32AM  Yahoo Finance]
▶ WPP considers merging Young & Rubicam and VML   [08:41AM  American City Business Journals]
▶ Yahoo Finance Live: Market Movers - Sep 24th, 2018   [06:55AM  Yahoo Finance Video]
▶ BCW Names Latin America Market Leaders   [Sep-23-18 11:35PM  Business Wire]
▶ 6 Undervalued Stocks With High Predictability   [Sep-20-18 04:23PM  GuruFocus.com]
▶ BCW Names Latin America Market Leaders   [12:23PM  Business Wire]
▶ WPP Taps New Chief for Wunderman Agency   [Sep-13-18 08:06PM  The Wall Street Journal]
▶ WPP Taps New Chief for Wunderman Agency   [05:07AM  The Wall Street Journal]
▶ Stocks That Fell to 3-Year Lows in the Week of Sept. 7   [Sep-09-18 02:01PM  GuruFocus.com]
▶ Verizon's Armstrong said to be eyeing exit, leaving tasks unfinished   [Sep-07-18 11:06AM  American City Business Journals]
▶ BCW Launches Brand Identity and Corporate Website   [Sep-05-18 01:12PM  Business Wire]
▶ Company News For Sept 5, 2018   [09:57AM  Zacks]
▶ [$$] WPPs Struggles in North America Send Shares Lower   [Sep-04-18 10:17PM  The Wall Street Journal]
▶ [$$] WPP's Struggles in North America Send Shares Lower   [11:00AM  The Wall Street Journal]
▶ WPP 2018 Interim Results   [07:00AM  Business Wire]
▶ [$$] European Equities Market Talk Roundup   [05:18AM  The Wall Street Journal]
▶ Who Really Owns WPP plc (LON:WPP)?   [03:28AM  Simply Wall St.]
▶ [$$] WPP Returned to Quarterly Net Sales Growth in 2Q   [03:11AM  The Wall Street Journal]
▶ [$$] Ad Giant WPP Taps Company Veteran Mark Read for CEO   [Sep-03-18 10:12PM  The Wall Street Journal]
▶ [$$] WPP Taps Company Veteran as CEO   [12:44PM  The Wall Street Journal]
▶ 5 Stocks With Low Price-Sales Ratios   [Aug-31-18 04:11PM  GuruFocus.com]
▶ WPP Has Picked the Right CEO to Forget Sorrell   [Aug-30-18 11:30PM  Bloomberg]
▶ Top Ranked Income Stocks to Buy for August 29th   [Aug-29-18 10:50AM  Zacks]
▶ WPP Is Leaving Mayfair HQ in Break From Sorrell Era   [Aug-13-18 01:30PM  Bloomberg]
▶ Grey Consulting Is Launched   [Aug-02-18 01:32PM  PR Newswire]
▶ [$$] WPP Veteran Read Has Emerged as Leading CEO Choice   [11:47AM  The Wall Street Journal]
▶ Rodrigo Jatene Becomes Chief Creative Officer, Grey West   [Jul-24-18 03:45PM  PR Newswire]

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