OMC Valuation

Omnicom Group Inc

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72.940

+0.26(0.358%)1D

Overview
Forecast
Valuation
Earnings

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 8.23 is considered Undervalued compared with the five-year average of 11.15. The fair price of Omnicom Group Inc (OMC) is between 82.82 to 99.97 according to relative valuation methord. Compared to the current price of 72.94 USD , Omnicom Group Inc is Undervalued By 11.93%.

Relative Value

Fair Zone

82.82-99.97

Current Price：72.94

11.93%

Undervalued

8.23

Trailing

Forward

7.00

EV/EBITDA

Omnicom Group Inc. (OMC) has a current EV/EBITDA of 7.00. The 5-year average EV/EBITDA is 8.23. The thresholds are as follows: Strongly Undervalued below 6.93, Undervalued between 6.93 and 7.58, Fairly Valued between 8.88 and 7.58, Overvalued between 8.88 and 9.53, and Strongly Overvalued above 9.53. The current Forward EV/EBITDA of 7.00 falls within the Undervalued range.

7.51

EV/EBIT

Omnicom Group Inc. (OMC) has a current EV/EBIT of 7.51. The 5-year average EV/EBIT is 9.07. The thresholds are as follows: Strongly Undervalued below 7.65, Undervalued between 7.65 and 8.36, Fairly Valued between 9.78 and 8.36, Overvalued between 9.78 and 10.48, and Strongly Overvalued above 10.48. The current Forward EV/EBIT of 7.51 falls within the Strongly Undervalued range.

0.68

Omnicom Group Inc. (OMC) has a current PS of 0.68. The 5-year average PS is 1.09. The thresholds are as follows: Strongly Undervalued below 0.82, Undervalued between 0.82 and 0.95, Fairly Valued between 1.22 and 0.95, Overvalued between 1.22 and 1.35, and Strongly Overvalued above 1.35. The current Forward PS of 0.68 falls within the Strongly Undervalued range.

6.00

P/OCF

Omnicom Group Inc. (OMC) has a current P/OCF of 6.00. The 5-year average P/OCF is 10.65. The thresholds are as follows: Strongly Undervalued below -7.83, Undervalued between -7.83 and 1.41, Fairly Valued between 19.89 and 1.41, Overvalued between 19.89 and 29.13, and Strongly Overvalued above 29.13. The current Forward P/OCF of 6.00 falls within the Historic Trend Line -Fairly Valued range.

8.04

P/FCF

Omnicom Group Inc. (OMC) has a current P/FCF of 8.04. The 5-year average P/FCF is 10.21. The thresholds are as follows: Strongly Undervalued below 5.55, Undervalued between 5.55 and 7.88, Fairly Valued between 12.54 and 7.88, Overvalued between 12.54 and 14.87, and Strongly Overvalued above 14.87. The current Forward P/FCF of 8.04 falls within the Historic Trend Line -Fairly Valued range.

Omnicom Group Inc (OMC) has a current Price-to-Book (P/B) ratio of 3.15. Compared to its 3-year average P/B ratio of 4.88 , the current P/B ratio is approximately -35.46% higher. Relative to its 5-year average P/B ratio of 4.89, the current P/B ratio is about -35.59% higher. Omnicom Group Inc (OMC) has a Forward Free Cash Flow (FCF) yield of approximately 12.51%. Compared to its 3-year average FCF yield of 6.74%, the current FCF yield is approximately 85.67% lower. Relative to its 5-year average FCF yield of 8.60% , the current FCF yield is about 45.37% lower.

3.15

P/B

Median3y

4.88

Median5y

4.89

12.51

FCF Yield

Median3y

6.74

Median5y

8.60

Competitors Valuation Multiple

The average P/S ratio for OMC's competitors is 0.47, providing a benchmark for relative valuation. Omnicom Group Inc Corp (OMC) exhibits a P/S ratio of 0.68, which is 44.45% above the industry average. Given its robust revenue growth of 4.20%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Paramount Skydance Corp

Interpublic Group of Companies Inc

Trump Media & Technology Group Corp

Performance Decomposition

Market capitalization of OMC decreased by 27.37% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 3.85B to 4.02B.

The secondary factor is the P/E Change, contributed -8.12%to the performance.

Overall, the performance of OMC in the past 1 year is driven by Revenue Growth. Which is more sustainable.

4.20%

3.85B → 4.02B

Revenue Growth

-23.45%

9.04 → 6.92

Margin Expansion

-8.12%

11.35 → 10.43

P/E Change

-27.37%