Assessing Omnicom Group (OMC) Valuation After Recent Share Price Swings And Interpublic Deal Plans
Omnicom Group stock: recent returns and business scale
Omnicom Group (OMC) has seen a mix of near term moves, with a 2.6% one day decline and a 3.9% drop over the past week, along with a 6.1% gain over the past month.
Over longer horizons, the stock shows a small negative total return over the past year and a modest positive total return over three years, while the five year total return is materially higher.
At a last close of US$77.58 and a value score of 5, Omnicom operates a large global marketing and communications platform. The company reported US$16.1b in revenue and US$1.3b in net income.
See our latest analysis for Omnicom Group.
After a weak recent patch that includes a 2.6% one day share price decline and a 3.9% 7 day share price return, Omnicom still shows a 6.1% 30 day share price return, set against a 4.3% 1 year total shareholder return decline but a 46.8% 5 year total shareholder return.
If Omnicom has you reassessing your watchlist, this can be a good moment to broaden your horizons with fast growing stocks with high insider ownership.
With Omnicom trading at US$77.58 alongside a mid range value score and a stated intrinsic discount, you have to ask yourself: is this a genuine entry point, or is the market already pricing in future growth?
Most Popular Narrative Narrative: 23.6% Undervalued
With the narrative fair value at about US$101.56 versus Omnicom's last close of US$77.58, the current price sits well below that estimate and puts the focus firmly on what is driving the gap.
The pending acquisition and integration of Interpublic is set to create the industry's largest, most data-rich global marketing services company, unlocking significant cross-selling opportunities, cost synergies, and expanded capabilities across digital, analytics, and high-growth verticals. This is likely to drive both top-line revenue growth and margin expansion post-closing.
Want to see what kind of revenue path and margin profile would support that valuation gap closing? The narrative leans on steady growth, rising profitability and a future earnings multiple that still sits below many media peers. Curious which assumptions really carry the fair value math here? The full narrative lays out those numbers in detail.
Result: Fair Value of $101.56 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, the story could change quickly if the Interpublic integration runs into cost or client issues, or if AI driven in house marketing cuts into agency demand.
Find out about the key risks to this Omnicom Group narrative.
Build Your Own Omnicom Group Narrative
If you look at the numbers and come to a different conclusion, or just prefer working from your own assumptions, you can build a custom view of Omnicom in a few minutes with Do it your way.
A great starting point for your Omnicom Group research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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