Zeus note today’s announcement by WPP confirming it has agreed the sale of its majority stake in FGS Global, a leading strategic communications and advisory firm, for an enterprise value of $1.7bn. FGS generated an operating profit of $87m on $465m of net sales in 2023, implying a purchase EV/EBIT multiple of 19.5x, materially below the current FY24E EV/EBIT of 6.0x for PPHC. Were PPHC to trade on a 19.5x multiple, our analysis indicates shares could be worth north of 200% versus the current pri ....
07 Aug 2024
Public Policy Holding Company (PPHC LN) - Flash note: WPP’s sale of FGS implies material upside for PPHC
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Public Policy Holding Company (PPHC LN) - Flash note: WPP’s sale of FGS implies material upside for PPHC
Public Policy Holding Co., Inc. (PPHC:LON) | 131 0 0.0% | Mkt Cap: 156.9m
- Published:
07 Aug 2024 -
Author:
Andy Hanson | Carl Smith, CFA -
Pages:
4
Zeus note today’s announcement by WPP confirming it has agreed the sale of its majority stake in FGS Global, a leading strategic communications and advisory firm, for an enterprise value of $1.7bn. FGS generated an operating profit of $87m on $465m of net sales in 2023, implying a purchase EV/EBIT multiple of 19.5x, materially below the current FY24E EV/EBIT of 6.0x for PPHC. Were PPHC to trade on a 19.5x multiple, our analysis indicates shares could be worth north of 200% versus the current pri ....