IPG Relative Valuation
IPG's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, IPG is overvalued; if below, it's undervalued.
Historical Valuation
Interpublic Group of Companies Inc (IPG) is now in the Undervalued zone, suggesting that its current forward PE ratio of 8.15 is considered Undervalued compared with the five-year average of 11.69. The fair price of Interpublic Group of Companies Inc (IPG) is between 30.24 to 39.20 according to relative valuation methord. Compared to the current price of 24.58 USD , Interpublic Group of Companies Inc is Undervalued By 18.72%.
Relative Value
Fair Zone
30.24-39.20
Current Price：24.58
18.72%
Undervalued
8.15
PE
1Y
3Y
5Y
Trailing
Forward
6.42
EV/EBITDA
Interpublic Group of Companies Inc. (IPG) has a current EV/EBITDA of 6.42. The 5-year average EV/EBITDA is 8.52. The thresholds are as follows: Strongly Undervalued below 6.58, Undervalued between 6.58 and 7.55, Fairly Valued between 9.48 and 7.55, Overvalued between 9.48 and 10.45, and Strongly Overvalued above 10.45. The current Forward EV/EBITDA of 6.42 falls within the Strongly Undervalued range.
7.15
EV/EBIT
Interpublic Group of Companies Inc. (IPG) has a current EV/EBIT of 7.15. The 5-year average EV/EBIT is 9.69. The thresholds are as follows: Strongly Undervalued below 7.27, Undervalued between 7.27 and 8.48, Fairly Valued between 10.90 and 8.48, Overvalued between 10.90 and 12.11, and Strongly Overvalued above 12.11. The current Forward EV/EBIT of 7.15 falls within the Strongly Undervalued range.
1.00
PS
Interpublic Group of Companies Inc. (IPG) has a current PS of 1.00. The 5-year average PS is 1.29. The thresholds are as follows: Strongly Undervalued below 0.94, Undervalued between 0.94 and 1.11, Fairly Valued between 1.46 and 1.11, Overvalued between 1.46 and 1.63, and Strongly Overvalued above 1.63. The current Forward PS of 1.00 falls within the Undervalued range.
6.51
P/OCF
Interpublic Group of Companies Inc. (IPG) has a current P/OCF of 6.51. The 5-year average P/OCF is 4.88. The thresholds are as follows: Strongly Undervalued below -27.52, Undervalued between -27.52 and -11.32, Fairly Valued between 21.07 and -11.32, Overvalued between 21.07 and 37.27, and Strongly Overvalued above 37.27. The current Forward P/OCF of 6.51 falls within the Historic Trend Line -Fairly Valued range.
7.74
P/FCF
Interpublic Group of Companies Inc. (IPG) has a current P/FCF of 7.74. The 5-year average P/FCF is 11.97. The thresholds are as follows: Strongly Undervalued below -6.21, Undervalued between -6.21 and 2.88, Fairly Valued between 21.06 and 2.88, Overvalued between 21.06 and 30.15, and Strongly Overvalued above 30.15. The current Forward P/FCF of 7.74 falls within the Historic Trend Line -Fairly Valued range.
Interpublic Group of Companies Inc (IPG) has a current Price-to-Book (P/B) ratio of 2.44. Compared to its 3-year average P/B ratio of 3.12 , the current P/B ratio is approximately -21.74% higher. Relative to its 5-year average P/B ratio of 3.45, the current P/B ratio is about -29.16% higher. Interpublic Group of Companies Inc (IPG) has a Forward Free Cash Flow (FCF) yield of approximately 9.04%. Compared to its 3-year average FCF yield of 6.73%, the current FCF yield is approximately 34.35% lower. Relative to its 5-year average FCF yield of 9.12% , the current FCF yield is about -0.91% lower.
2.44
P/B
Median3y
3.12
Median5y
3.45
9.04
FCF Yield
Median3y
6.73
Median5y
9.12
Competitors Valuation Multiple
The average P/S ratio for IPG's competitors is 0.10, providing a benchmark for relative valuation. Interpublic Group of Companies Inc Corp (IPG) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of -5.13%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of IPG decreased by 10.28% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 0.92 to 5.10.
The secondary factor is the Revenue Growth, contributed -5.13%to the performance.
Overall, the performance of IPG in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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