Omnicom Group Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • 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 OCN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: OCN (€89) is trading below our estimate of fair value (€233.39)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

OCN 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/Revenue1.6x
Enterprise Value/EBITDA9.5x
PEG Ratio2.6x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for OCN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.7x
SAX Ströer SE KGaA
36.2x30.1%€3.4b
M8G MGI - Media and Games Invest
5.6x-8.3%€262.8m
RRTL RTL Group
12.7x11.5%€4.5b
G24 Scout24
28.3x10.9%€5.1b
OCN Omnicom Group
12.4x4.8%€18.3b

Price-To-Earnings vs Peers: OCN is good value based on its Price-To-Earnings Ratio (12.4x) compared to the peer average (20.7x).


Price to Earnings Ratio vs Industry

How does OCN's PE Ratio compare vs other companies in the European Media Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a25.7%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a25.7%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: OCN is good value based on its Price-To-Earnings Ratio (12.4x) compared to the European Media industry average (14.4x).


Price to Earnings Ratio vs Fair Ratio

What is OCN'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.

OCN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.4x
Fair PE Ratio24x

Price-To-Earnings vs Fair Ratio: OCN is good value based on its Price-To-Earnings Ratio (12.4x) compared to the estimated Fair Price-To-Earnings Ratio (24x).


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 OCN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€89.00
€101.00
+13.5%
7.6%€109.32€82.23n/a11
Apr ’25€89.56
€95.56
+6.7%
9.4%€108.46€76.01n/a12
Mar ’25€81.26
€93.58
+15.2%
10.0%€108.59€73.32n/a12
Feb ’25€82.38
€92.10
+11.8%
10.8%€108.03€72.94n/a12
Jan ’25€77.92
€84.78
+8.8%
13.2%€102.36€66.12n/a10
Dec ’24€74.66
€86.66
+16.1%
12.7%€105.97€68.46n/a11
Nov ’24€70.72
€86.95
+23.0%
12.7%€106.43€68.76n/a11
Oct ’24€70.22
€90.36
+28.7%
11.1%€106.01€68.48n/a11
Sep ’24€74.36
€89.21
+20.0%
8.0%€102.24€76.00n/a11
Aug ’24€75.96
€89.21
+17.4%
8.0%€102.24€76.00n/a11
Jul ’24€86.48
€91.98
+6.4%
8.3%€103.01€72.02n/a11
Jun ’24€82.54
€91.98
+11.4%
8.3%€103.01€72.02n/a11
May ’24€81.28
€91.98
+13.2%
8.3%€103.01€72.02€89.0011
Apr ’24€86.03
€89.40
+3.9%
10.8%€103.32€71.03€89.5611
Mar ’24€85.02
€88.62
+4.2%
13.6%€104.88€66.48€81.2611
Feb ’24€79.03
€76.77
-2.9%
11.8%€87.39€58.87€82.3811
Jan ’24€75.76
€74.22
-2.0%
14.0%€89.57€53.74€77.9211
Dec ’23€75.65
€79.35
+4.9%
14.8%€96.64€57.99€74.6611
Nov ’23€73.68
€78.09
+6.0%
14.8%€95.33€57.20€70.7211
Oct ’23€66.27
€80.54
+21.5%
17.1%€106.31€56.28€70.2211
Sep ’23€66.19
€77.50
+17.1%
16.8%€102.23€54.12€74.3611
Aug ’23€68.00
€77.08
+13.3%
16.4%€99.96€52.92€75.9610
Jul ’23€61.53
€83.88
+36.3%
14.8%€102.46€65.12€86.4811
Jun ’23€69.31
€86.43
+24.7%
9.5%€99.12€71.33€82.5410
May ’23€74.36
€86.43
+16.2%
9.5%€99.12€71.33€81.2810

Analyst Forecast: Target price is less than 20% higher than the current share price.


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