STGW Valuation

Stagwell Inc

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4.820

-0.8(-14.235%)1D

STGW Relative Valuation

STGW'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, STGW is overvalued; if below, it's undervalued.

Historical Valuation

Stagwell Inc (STGW) is now in the Undervalued zone, suggesting that its current forward PE ratio of 5.26 is considered Undervalued compared with the five-year average of 7.30. The fair price of Stagwell Inc (STGW) is between 8.15 to 12.71 according to relative valuation methord. Compared to the current price of 4.82 USD , Stagwell Inc is Undervalued By 40.87%.

Relative Value

Fair Zone

8.15-12.71

Current Price：4.82

40.87%

Undervalued

5.26

Trailing

Forward

6.62

EV/EBITDA

Stagwell Inc. (STGW) has a current EV/EBITDA of 6.62. The 5-year average EV/EBITDA is 6.01. The thresholds are as follows: Strongly Undervalued below 1.90, Undervalued between 1.90 and 3.95, Fairly Valued between 8.07 and 3.95, Overvalued between 8.07 and 10.12, and Strongly Overvalued above 10.12. The current Forward EV/EBITDA of 6.62 falls within the Historic Trend Line -Fairly Valued range.

15.21

EV/EBIT

Stagwell Inc. (STGW) has a current EV/EBIT of 15.21. The 5-year average EV/EBIT is 12.57. The thresholds are as follows: Strongly Undervalued below 2.56, Undervalued between 2.56 and 7.57, Fairly Valued between 17.57 and 7.57, Overvalued between 17.57 and 22.57, and Strongly Overvalued above 22.57. The current Forward EV/EBIT of 15.21 falls within the Historic Trend Line -Fairly Valued range.

4.82

Stagwell Inc. (STGW) has a current PS of 4.82. The 5-year average PS is 0.32. The thresholds are as follows: Strongly Undervalued below -0.56, Undervalued between -0.56 and -0.12, Fairly Valued between 0.76 and -0.12, Overvalued between 0.76 and 1.20, and Strongly Overvalued above 1.20. The current Forward PS of 4.82 falls within the Strongly Overvalued range.

5.23

P/OCF

Stagwell Inc. (STGW) has a current P/OCF of 5.23. The 5-year average P/OCF is 2.24. The thresholds are as follows: Strongly Undervalued below -1.19, Undervalued between -1.19 and 0.53, Fairly Valued between 3.96 and 0.53, Overvalued between 3.96 and 5.67, and Strongly Overvalued above 5.67. The current Forward P/OCF of 5.23 falls within the Overvalued range.

6.77

P/FCF

Stagwell Inc. (STGW) has a current P/FCF of 6.77. The 5-year average P/FCF is 2.67. The thresholds are as follows: Strongly Undervalued below -1.38, Undervalued between -1.38 and 0.65, Fairly Valued between 4.69 and 0.65, Overvalued between 4.69 and 6.71, and Strongly Overvalued above 6.71. The current Forward P/FCF of 6.77 falls within the Strongly Overvalued range.

Stagwell Inc (STGW) has a current Price-to-Book (P/B) ratio of 1.68. Compared to its 3-year average P/B ratio of 2.14 , the current P/B ratio is approximately -21.62% higher. Relative to its 5-year average P/B ratio of 2.25, the current P/B ratio is about -25.49% higher. Stagwell Inc (STGW) has a Forward Free Cash Flow (FCF) yield of approximately 19.94%. Compared to its 3-year average FCF yield of 21.76%, the current FCF yield is approximately -8.35% lower. Relative to its 5-year average FCF yield of 19.34% , the current FCF yield is about 3.13% lower.

1.68

P/B

Median3y

2.14

Median5y

2.25

19.94

FCF Yield

Median3y

21.76

Median5y

19.34

Competitors Valuation Multiple

The average P/S ratio for STGW's competitors is 38.37, providing a benchmark for relative valuation. Stagwell Inc Corp (STGW) exhibits a P/S ratio of 4.82, which is -87.44% above the industry average. Given its robust revenue growth of 4.46%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

CRA International Inc

Healthcare Services Group Inc

Brightview Holdings Inc

11.82

-4.13%

1.12B

Performance Decomposition

Market capitalization of STGW decreased by 38.68% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 1.95 to 3.20.

The secondary factor is the Revenue Growth, contributed 4.46%to the performance.

Overall, the performance of STGW in the past 1 year is driven by Margin Expansion. Which is more sustainable.

4.46%

711.28M → 743.00M

Revenue Growth

64.10%

1.95 → 3.20

Margin Expansion

-107.24%

1.23K → -89.29

P/E Change

-38.68%