Omnicom Stock Valuation

OMC
 Stock
  

USD 63.09  0.37  0.58%   

Do you wonder what the value of Omnicom Group is? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Omnicom, is its stock price multiplied by the total number of shares outstanding, calculating Omnicom's enterprise value requires a different approach. It uses Omnicom's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Omnicom Group holds a recent Real Value of $72.39 per share. The prevailing price of the company is $63.09. At this time, the company appears to be undervalued. Our model determines the value of Omnicom Group from analyzing the company fundamentals such as Operating Margin of 16.49 %, shares outstanding of 204.84 M, and Return On Equity of 35.40 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we support taking in undervalued entities and trading overvalued entities since, at some point, asset prices and their ongoing real values will merge together.
  
Omnicom Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Omnicom's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Undervalued
Today 63.09
Please note that Omnicom's price fluctuation is very steady at this time. Calculation of the real value of Omnicom Group is based on 3 months time horizon. Increasing Omnicom's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Omnicom Group is useful when determining the fair value of the Omnicom stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Omnicom. Since Omnicom is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Omnicom Stock. However, Omnicom's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
72.39
Real Value
74.07
Upside
Estimating the potential upside or downside of Omnicom Group helps investors to forecast how Omnicom stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Omnicom more accurately as focusing exclusively on Omnicom's fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
61.9267.3872.85
Details
Hype
Prediction
LowEstimated ValueHigh
61.4063.0864.76
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.230.230.23
Details
5 Analysts
Consensus
LowTarget PriceHigh
66.0079.3394.00
Details

Omnicom Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Omnicom's current stock value. Our valuation model uses many indicators to compare Omnicom value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Omnicom competition to find correlations between indicators driving Omnicom's intrinsic value. More Info.
Omnicom Group is considered to be number one stock in five year return category among related companies. It is considered to be number one stock in price to book category among related companies fabricating about  1.28  of Price to Book per Five Year Return. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Omnicom by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Omnicom's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Omnicom's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Omnicom's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Omnicom and how it compares across the competition.

About Omnicom Valuation

The stock valuation mechanism determines the current worth of Omnicom Group on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Omnicom Group. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Omnicom Group based exclusively on its fundamental and basic technical indicators. By analyzing Omnicom's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Omnicom's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Omnicom. We calculate exposure to Omnicom's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Omnicom's related companies.
Omnicom Group Inc., together with its subsidiaries, provides advertising, marketing, and corporate communications services. The company was incorporated in 1944 and is based in New York, New York. Omnicom operates under Advertising Agencies classification in the United States and is traded on New York Stock Exchange. It employs 71700 people.
Omnicom's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Omnicom's value is low or high relative to the company's performance and growth projections. Determining the market value of Omnicom can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Omnicom represents a small ownership stake in the entity. As a stockholder of Omnicom, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Omnicom Dividends Analysis For Valuation

There are various types of dividends Omnicom can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Omnicom shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Omnicom Group directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Omnicom pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Omnicom by the value of the dividends paid out.

Omnicom Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Omnicom does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio0.79
Earnings Quarterly Growth0.10%
Revenue Growth-0.10%
Payout Ratio45.83%
Enterprise Value To Ebitda7.25
Earnings Growth5.00%
Enterprise Value To Revenue1.20
Please check Your Equity Center. You can also try Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

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When running Omnicom Group price analysis, check to measure Omnicom's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Omnicom is operating at the current time. Most of Omnicom's value examination focuses on studying past and present price action to predict the probability of Omnicom's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Omnicom's price. Additionally, you may evaluate how the addition of Omnicom to your portfolios can decrease your overall portfolio volatility.
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Is Omnicom's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Omnicom. If investors know Omnicom will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Omnicom listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Omnicom Group is measured differently than its book value, which is the value of Omnicom that is recorded on the company's balance sheet. Investors also form their own opinion of Omnicom's value that differs from its market value or its book value, called intrinsic value, which is Omnicom's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Omnicom's market value can be influenced by many factors that don't directly affect Omnicom's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Omnicom's value and its price as these two are different measures arrived at by different means. Investors typically determine Omnicom value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Omnicom's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.