The WPP message board is very quite at present. With the latest announcement, what is everyone's views of the current offer from WPP Plc? The results were strong considering the impacts on the economy over the last six months and a forward looking EBIT of $85m to $95m or an EPS of $0.10. The equates to a sales price PE of 7...Even at the current PE of 10, that is cheap compared to it's peers. Based on the latest results and forward guidance, I am not sure who would want to accept this offer. The return to dividends and a reduction of borrowing of $117m makes an even more compelling story.
I think a fair value for WPP now $1.00 but with a premium, as we all want, I would like to see an offer of around $1.15.
Does anyone else have any valuations?
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