The Interpublic Group of Companies, Inc.

BOVESPA:I1PH34 Stock Report

Market Cap: R$64.0b

Interpublic Group of Companies Valuation

Is I1PH34 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of I1PH34 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: I1PH34 (R$171.49) is trading below our estimate of fair value (R$361)

Significantly Below Fair Value: I1PH34 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for I1PH34?

Key metric: As I1PH34 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for I1PH34. This is calculated by dividing I1PH34's market cap by their current earnings.
What is I1PH34's PE Ratio?
PE Ratio13.6x
EarningsUS$808.20m
Market CapUS$11.02b

Price to Earnings Ratio vs Peers

How does I1PH34's PE Ratio compare to its peers?

The above table shows the PE ratio for I1PH34 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average27.4x
ELMD3 Eletromidia
32.5x28.3%R$3.9b
WPP WPP
43.9x20.6%UK£8.9b
002027 Focus Media Information Technology
19.5x9.2%CN¥101.1b
OMC Omnicom Group
13.7x6.4%US$20.0b
I1PH34 Interpublic Group of Companies
13.6x7.0%R$11.0b

Price-To-Earnings vs Peers: I1PH34 is good value based on its Price-To-Earnings Ratio (13.6x) compared to the peer average (27.4x).

Price to Earnings Ratio vs Industry

How does I1PH34's PE Ratio compare vs other companies in the Global Media Industry?

14 CompaniesPrice / EarningsEstimated GrowthMarket Cap
I1PH34 13.6xIndustry Avg. 15.4xNo. of Companies71PE01224364860+
14 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: I1PH34 is good value based on its Price-To-Earnings Ratio (13.6x) compared to the Global Media industry average (15.4x).

Price to Earnings Ratio vs Fair Ratio

What is I1PH34's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

I1PH34 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.6x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate I1PH34's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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