Omnicom Group Valuation

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

Below Fair Value: OMC ($95.35) is trading below our estimate of fair value ($227.25)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

OMC 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 OMC's PE Ratio compare to its peers?

The above table shows the PE ratio for OMC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average43x
IPG Interpublic Group of Companies
10.7x1.4%US$11.1b
IBTA Ibotta
40.5x33.7%US$2.1b
CRTO Criteo
31.5x12.4%US$2.3b
PUBM PubMatic
89.2x34.1%US$1.1b
OMC Omnicom Group
12.6x4.8%US$18.4b

Price-To-Earnings vs Peers: OMC is good value based on its Price-To-Earnings Ratio (12.6x) compared to the peer average (43x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a11.6%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a11.6%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: OMC is good value based on its Price-To-Earnings Ratio (12.6x) compared to the US Media industry average (12.6x).


Price to Earnings Ratio vs Fair Ratio

What is OMC'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.

OMC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.6x
Fair PE Ratio18.5x

Price-To-Earnings vs Fair Ratio: OMC is good value based on its Price-To-Earnings Ratio (12.6x) compared to the estimated Fair Price-To-Earnings Ratio (18.5x).


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 OMC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$95.35
US$109.45
+14.8%
7.0%US$117.00US$88.00n/a11
Jul ’25US$87.69
US$109.45
+24.8%
7.0%US$117.00US$88.00n/a11
Jun ’25US$92.96
US$109.00
+17.3%
7.2%US$117.00US$88.00n/a11
May ’25US$93.65
US$107.99
+15.3%
7.3%US$117.00US$88.00n/a12
Apr ’25US$96.58
US$103.08
+6.7%
9.4%US$117.00US$82.00n/a12
Mar ’25US$88.44
US$100.83
+14.0%
10.0%US$117.00US$79.00n/a12
Feb ’25US$89.81
US$99.75
+11.1%
10.8%US$117.00US$79.00n/a12
Jan ’25US$86.51
US$93.60
+8.2%
13.2%US$113.00US$73.00n/a10
Dec ’24US$81.81
US$92.41
+13.0%
12.7%US$113.00US$73.00n/a11
Nov ’24US$74.48
US$92.32
+24.0%
12.7%US$113.00US$73.00n/a11
Oct ’24US$74.48
US$96.32
+29.3%
11.1%US$113.00US$73.00n/a11
Sep ’24US$80.21
US$98.59
+22.9%
8.0%US$113.00US$84.00n/a11
Aug ’24US$82.85
US$98.59
+19.0%
8.0%US$113.00US$84.00n/a11
Jul ’24US$95.15
US$100.90
+6.0%
8.3%US$113.00US$79.00US$87.6911
Jun ’24US$89.30
US$100.90
+13.0%
8.3%US$113.00US$79.00US$92.9611
May ’24US$92.18
US$100.90
+9.5%
8.3%US$113.00US$79.00US$93.6511
Apr ’24US$94.34
US$96.91
+2.7%
10.8%US$112.00US$77.00US$96.5811
Mar ’24US$91.47
US$94.64
+3.5%
13.6%US$112.00US$71.00US$88.4411
Feb ’24US$87.63
US$83.45
-4.8%
11.8%US$95.00US$64.00US$89.8111
Jan ’24US$81.57
US$78.73
-3.5%
14.0%US$95.00US$57.00US$86.5111
Dec ’23US$79.86
US$78.00
-2.3%
14.8%US$95.00US$57.00US$81.8111
Nov ’23US$73.10
US$77.82
+6.5%
14.8%US$95.00US$57.00US$74.4811
Oct ’23US$63.09
US$77.27
+22.5%
17.1%US$102.00US$54.00US$74.4811
Sep ’23US$66.64
US$77.32
+16.0%
16.8%US$102.00US$54.00US$80.2111
Aug ’23US$70.12
US$78.65
+12.2%
16.4%US$102.00US$54.00US$82.8510
Jul ’23US$64.31
US$87.59
+36.2%
14.8%US$107.00US$68.00US$95.1511

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


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