Stagwell (STGW): Evaluating Valuation After Strategic In-Pulse Launch With Zabka in Poland

If you have been keeping an eye on Stagwell (STGW), the company’s latest partnership news is worth your attention. Stagwell just announced a joint venture with Zabka Polska to launch In-Pulse, a consumer analytics tool built for the Polish market. By pairing Stagwell’s data-driven marketing capabilities with Zabka’s massive retail footprint, In-Pulse is designed to deliver deep, actionable insights for businesses looking to better understand shifting consumer habits in Poland. This goes beyond another headline and represents Stagwell planting a flag in a key European market with a service that could have ripple effects.

This move comes shortly after Stagwell named Slavi Samardzija as Chief Data and Platforms Officer, signaling an even stronger commitment to digital transformation. The stock itself has faced challenges over the past year, with a decline of nearly 29%, but it saw a turnaround over the past 3 months, rising by 22%. Momentum appears to be building, even as the company’s strategy shifts toward innovative, data-powered offerings.

After this recent increase and all the strategic maneuvering, is Stagwell’s share price a bargain reflecting untapped growth, or is the market already factoring in these future developments?

Most Popular Narrative: 35.9% Undervalued

According to the most widely followed narrative, Stagwell appears deeply undervalued based on analyst expectations for significant improvements in its revenue growth, margins, and profitability over the next several years.

Expansion and integration of proprietary digital and martech platforms (such as Code and Ink, and the "machine") are creating higher-margin, recurring revenue streams and improving operational efficiencies. This development could drive net margin expansion.

Curious what is fueling this huge valuation gap? The underlying assumptions point to a transformation not just in earnings, but in profit structure and business model. Want to know which bold financial levers could dramatically reshape Stagwell's future and the numbers that could close the valuation gap? Dive in to see what might be powering this narrative.

Result: Fair Value of $8.19 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, heavy dependence on top tech clients and slow progress integrating acquisitions could quickly undermine these optimistic projections for Stagwell’s future growth.

Find out about the key risks to this Stagwell narrative.

Another View: What Does Our DCF Model Say?

Taking a step back from analyst targets, our DCF model offers its own verdict. It too points to Stagwell being undervalued at current prices. Does this more cautious method confirm the opportunity, or does it overlook lingering risks?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Stagwell for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Stagwell Narrative

If you see things differently or want to dive deeper into the data, you can craft your own perspective in just a few minutes. Do it your way.

A great starting point for your Stagwell research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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