WPP Share Price (WPP)

Good buying opportunity if there was a plan..

Love it, or hate it, and who knows what Don Draper (Mad Men) would make of this.. But this 100% made by AI Advert is pretty darn good...for Liquid Death (it's just water with an attitude lol) but that's not the point here..

https://www.instagram.com/reel/DLuvP9JtL48/?igsh=MXJvZDd5djFkc3NqeA==

SP will get walked down until arrival of a new CEO, then rally, then tank when he/she issues the statutory "the last guy has left mess" RNS. Then will bottom, then will rise on the we are going to slash headcount RNS. 1 year from now we'll probably be back where we are today.

For me, I think the market believes that the BOD will trim back it's yearly guidance for H2 and FY and that will come in the next Update/H1 Results

I can see a new CEO wanting to do a business review to find more cost savings,focus and improved margins , as the next 1-3 years will be crucial

This is looking oversold to me, and as no one posts here, thought I would post my CAPM valuation to see how much upside there might be .

10 year gilt yield: 4.5%

Beta : 1.27

UK stock expected annual stock market return: 9%

CAPM required rate of return = 4.5% + 1.27 x (9%-4.5%) = 10.21%

Forecast RoE for 2026 is 18.5%

So for 2026 valuation, value of net assets should equal 18.85/10.21 (i.e 1.85x) stated book value to get to the CAPM valuation.

Net assets per balance sheet = £3,475m x 1.85 = appx £6,400m; current market cap 5.43bn i.e appx 18% upside, by end of 2026, assuming profits forecast are not downgraded further.

Also shorters have done well and made unrealised gains, which might be worth closing now, and so provide some upward impetus, albeit probably just short term. Unless people think that earnings will have to be downgraded even more, this is looking interesting to me at current prices.

Https://www.asktraders.com/analysis/wpp-shares-under-pressure-analyst-downgrade-ceo-exit-and-ai-disruption/