OMC Relative Valuation
OMC'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, OMC is overvalued; if below, it's undervalued.
Historical Valuation
Omnicom Group Inc (OMC) is now in the Undervalued zone, suggesting that its current forward PE ratio of 7.73 is considered Undervalued compared with the five-year average of 11.02. The fair price of Omnicom Group Inc (OMC) is between 87.81 to 107.52 according to relative valuation methord. Compared to the current price of 70.17 USD , Omnicom Group Inc is Undervalued By 20.09%.
Relative Value
Fair Zone
87.81-107.52
Current Price：70.17
20.09%
Undervalued
7.73
PE
1Y
3Y
5Y
Trailing
Forward
6.53
EV/EBITDA
Omnicom Group Inc. (OMC) has a current EV/EBITDA of 6.53. The 5-year average EV/EBITDA is 8.19. The thresholds are as follows: Strongly Undervalued below 6.80, Undervalued between 6.80 and 7.50, Fairly Valued between 8.89 and 7.50, Overvalued between 8.89 and 9.58, and Strongly Overvalued above 9.58. The current Forward EV/EBITDA of 6.53 falls within the Strongly Undervalued range.
7.15
EV/EBIT
Omnicom Group Inc. (OMC) has a current EV/EBIT of 7.15. The 5-year average EV/EBIT is 9.01. The thresholds are as follows: Strongly Undervalued below 7.46, Undervalued between 7.46 and 8.23, Fairly Valued between 9.78 and 8.23, Overvalued between 9.78 and 10.55, and Strongly Overvalued above 10.55. The current Forward EV/EBIT of 7.15 falls within the Strongly Undervalued range.
0.82
PS
Omnicom Group Inc. (OMC) has a current PS of 0.82. The 5-year average PS is 1.08. The thresholds are as follows: Strongly Undervalued below 0.80, Undervalued between 0.80 and 0.94, Fairly Valued between 1.22 and 0.94, Overvalued between 1.22 and 1.36, and Strongly Overvalued above 1.36. The current Forward PS of 0.82 falls within the Undervalued range.
7.33
P/OCF
Omnicom Group Inc. (OMC) has a current P/OCF of 7.33. The 5-year average P/OCF is 10.57. The thresholds are as follows: Strongly Undervalued below -7.96, Undervalued between -7.96 and 1.31, Fairly Valued between 19.83 and 1.31, Overvalued between 19.83 and 29.09, and Strongly Overvalued above 29.09. The current Forward P/OCF of 7.33 falls within the Historic Trend Line -Fairly Valued range.
7.71
P/FCF
Omnicom Group Inc. (OMC) has a current P/FCF of 7.71. The 5-year average P/FCF is 10.34. The thresholds are as follows: Strongly Undervalued below 6.05, Undervalued between 6.05 and 8.19, Fairly Valued between 12.48 and 8.19, Overvalued between 12.48 and 14.62, and Strongly Overvalued above 14.62. The current Forward P/FCF of 7.71 falls within the Undervalued range.
Omnicom Group Inc (OMC) has a current Price-to-Book (P/B) ratio of 2.94. Compared to its 3-year average P/B ratio of 4.67 , the current P/B ratio is approximately -37.11% higher. Relative to its 5-year average P/B ratio of 4.80, the current P/B ratio is about -38.87% higher. Omnicom Group Inc (OMC) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 7.40%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 8.58% , the current FCF yield is about -100.00% lower.
2.94
P/B
Median3y
4.67
Median5y
4.80
12.17
FCF Yield
Median3y
7.40
Median5y
8.58
Competitors Valuation Multiple
The average P/S ratio for OMC's competitors is 0.10, providing a benchmark for relative valuation. Omnicom Group Inc Corp (OMC) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 3.98%, 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 OMC decreased by 18.44% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 3.88B to 4.04B.
The secondary factor is the P/E Change, contributed -6.98%to the performance.
Overall, the performance of OMC in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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FAQ
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