The Interpublic Group of Companies, Inc.

NYSE:IPG Stock Report

Market Cap: US$10.1b

Interpublic Group of Companies Valuation

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

Below Fair Value: IPG ($27.09) is trading below our estimate of fair value ($76.48)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for IPG. This is calculated by dividing IPG's market cap by their current earnings.
What is IPG's PE Ratio?
PE Ratio12.5x
EarningsUS$808.20m
Market CapUS$10.09b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for IPG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average86.3x
OMC Omnicom Group
13x6.4%US$18.9b
IBTA Ibotta
183.3x64.9%US$2.1b
MGNI Magnite
129x49.3%US$2.2b
CRTO Criteo
20.1x16.2%US$2.0b
IPG Interpublic Group of Companies
12.5x6.6%US$10.1b

Price-To-Earnings vs Peers: IPG is good value based on its Price-To-Earnings Ratio (12.5x) compared to the peer average (86.3x).

Price to Earnings Ratio vs Industry

How does IPG's PE Ratio compare vs other companies in the US Media Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
DISH DISH Network
2.5x-71.9%US$3.08b
GTN Gray Television
3.1x-29.4%US$473.32m
ABLV Able View Global
3.9xn/aUS$36.85m
ANTE AirNet Technology
0.3xn/aUS$7.72m
IPG 12.5xIndustry Avg. 14.8xNo. of Companies7PE01632486480+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: IPG is good value based on its Price-To-Earnings Ratio (12.5x) compared to the US Media industry average (14.8x).

Price to Earnings Ratio vs Fair Ratio

What is IPG'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.

IPG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.5x
Fair PE Ratio19.6x

Price-To-Earnings vs Fair Ratio: IPG is good value based on its Price-To-Earnings Ratio (12.5x) compared to the estimated Fair Price-To-Earnings Ratio (19.6x).

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 IPG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$27.09
US$31.86
+17.6%
12.8%US$39.00US$26.00n/a11
Nov ’25US$29.48
US$31.86
+8.1%
12.8%US$39.00US$26.00n/a11
Oct ’25US$31.22
US$33.04
+5.8%
11.4%US$39.00US$28.00n/a12
Sep ’25US$32.61
US$33.96
+4.1%
10.3%US$39.00US$28.00n/a12
Aug ’25US$30.96
US$33.96
+9.7%
10.3%US$39.00US$28.00n/a12
Jul ’25US$28.08
US$35.63
+26.9%
7.2%US$39.00US$31.00n/a12
Jun ’25US$31.37
US$35.54
+13.3%
7.9%US$39.00US$31.00n/a12
May ’25US$30.50
US$35.59
+16.7%
7.6%US$39.00US$31.00n/a13
Apr ’25US$32.50
US$35.83
+10.2%
6.9%US$40.00US$32.00n/a11
Mar ’25US$31.20
US$35.74
+14.5%
7.2%US$40.00US$32.00n/a11
Feb ’25US$33.20
US$35.92
+8.2%
7.4%US$40.00US$31.00n/a12
Jan ’25US$32.64
US$35.09
+7.5%
9.4%US$40.00US$30.00n/a11
Dec ’24US$31.31
US$34.33
+9.7%
10.9%US$40.00US$28.00n/a12
Nov ’24US$28.35
US$34.67
+22.3%
9.6%US$40.00US$30.00US$29.4812
Oct ’24US$28.66
US$38.09
+32.9%
9.0%US$43.00US$33.00US$31.2211
Sep ’24US$32.60
US$39.09
+19.9%
8.1%US$43.00US$33.00US$32.6111
Aug ’24US$33.96
US$39.09
+15.1%
8.1%US$43.00US$33.00US$30.9611
Jul ’24US$38.58
US$40.73
+5.6%
6.2%US$45.00US$36.00US$28.0811
Jun ’24US$37.75
US$40.36
+6.9%
5.7%US$45.00US$36.00US$31.3711
May ’24US$36.15
US$40.36
+11.7%
5.7%US$45.00US$36.00US$30.5011
Apr ’24US$37.24
US$39.58
+6.3%
10.0%US$45.00US$29.00US$32.5012
Mar ’24US$35.57
US$38.58
+8.5%
13.2%US$45.00US$28.00US$31.2012
Feb ’24US$37.07
US$35.75
-3.6%
10.0%US$39.00US$28.00US$33.2012
Jan ’24US$33.31
US$33.33
+0.07%
14.8%US$39.00US$22.00US$32.6412
Dec ’23US$34.46
US$33.17
-3.8%
14.8%US$39.00US$22.00US$31.3112
Nov ’23US$29.82
US$32.67
+9.5%
14.0%US$39.00US$22.00US$28.3512

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

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