Dentsu Group Valuation

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

DEN (€27.4) is trading below our estimate of [[fair value]] (€42.28)

Is DEN 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-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: DEN (€27.4) is trading below our estimate of fair value (€42.28)

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

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for DEN. This is calculated by dividing DEN's market cap by their current preferred multiple.
What is DEN's n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	JP¥1.16t

DEN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.1x
Enterprise Value/EBITDA	7x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does DEN's PS Ratio compare to its peers?

The above table shows the PS ratio for DEN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	3.5x
SAX Ströer SE KGaA	1.6x	7.4%	€3.1b
M8G Verve Group	1.6x	12.5%	€626.2m
RRTL RTL Group	0.7x	4.7%	€4.7b
G24 Scout24	10.1x	7.7%	€5.7b
DEN Dentsu Group	0.8x	3.8%	€1.2t

Price-To-Sales vs Peers: DEN is good value based on its Price-To-Sales Ratio (0.8x) compared to the peer average (3.5x).

Price to Earnings Ratio vs Industry

How does DEN's PE Ratio compare vs other companies in the DE Media Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	14.9%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	14.9%
	n/a	n/a	n/a

No more companies

Price-To-Sales vs Industry: DEN is expensive based on its Price-To-Sales Ratio (0.8x) compared to the European Media industry average (0.7x).

Price to Sales Ratio vs Fair Ratio

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

DEN PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.8x
Fair PS Ratio	4.2x

Price-To-Sales vs Fair Ratio: DEN is good value based on its Price-To-Sales Ratio (0.8x) compared to the estimated Fair Price-To-Sales Ratio (4.2x).

Analyst Price Targets

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

The above table shows the analyst DEN forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	€27.40	€28.15 +2.7%	11.5%	€33.14	€22.31	n/a	8
Sep ’25	€27.60	€27.18 -1.5%	11.5%	€32.00	€21.54	n/a	8
Aug ’25	€23.20	€25.15 +8.4%	11.2%	€29.99	€20.19	n/a	8
Jul ’25	€23.00	€25.15 +9.4%	11.2%	€29.99	€20.19	n/a	8
Jun ’25	€24.20	€26.09 +7.8%	9.0%	€30.66	€23.59	n/a	8
May ’25	€24.80	€26.88 +8.4%	9.6%	€31.74	€24.42	n/a	7
Apr ’25	€25.40	€26.88 +5.8%	9.6%	€31.74	€24.42	n/a	7
Mar ’25	€25.20	€27.17 +7.8%	10.4%	€32.29	€23.60	n/a	7
Feb ’25	€24.20	€26.97 +11.5%	11.5%	€32.37	€23.03	n/a	7
Jan ’25	€22.80	€27.66 +21.3%	15.1%	€33.87	€23.16	n/a	6
Dec ’24	€24.20	€27.66 +14.3%	15.1%	€33.87	€23.16	n/a	6
Nov ’24	€27.20	€29.58 +8.7%	16.4%	€37.88	€24.62	n/a	6
Oct ’24	€27.40	€29.68 +8.3%	15.1%	€37.87	€24.62	n/a	7
Sep ’24	€27.60	€30.24 +9.6%	17.8%	€41.19	€24.71	€27.60	7
Aug ’24	€30.00	€31.80 +6.0%	15.8%	€42.33	€27.35	€23.20	6
Jul ’24	€29.40	€31.80 +8.2%	15.8%	€42.33	€27.35	€23.00	6
Jun ’24	€29.60	€34.66 +17.1%	16.2%	€43.92	€29.06	€24.20	7
May ’24	€32.00	€36.03 +12.6%	16.8%	€46.18	€30.55	€24.80	7
Apr ’24	€31.80	€36.03 +13.3%	16.8%	€46.18	€30.55	€25.40	7
Mar ’24	€29.80	€34.38 +15.4%	17.7%	€44.97	€27.33	€25.20	8
Feb ’24	€28.80	€34.47 +19.7%	17.5%	€44.98	€27.33	€24.20	8
Jan ’24	€29.20	€34.47 +18.0%	17.5%	€44.98	€27.33	€22.80	8
Dec ’23	€30.00	€34.80 +16.0%	17.1%	€45.18	€27.46	€24.20	8
Nov ’23	€31.40	€33.93 +8.0%	16.8%	€44.41	€25.42	€27.20	8
Oct ’23	€28.80	€34.73 +20.6%	16.7%	€45.35	€25.95	€27.40	8
Sep ’23	€31.80	€36.12 +13.6%	16.5%	€46.58	€26.66	€27.60	8

Analyst Forecast: Target price is lower than the current share price.