Omnicom Group is a leading global marketing and corporate communications company. Omnicom's branded networks and numerous specialty firms provide advertising, strategic media planning and buying, digital and interactive marketing, direct and promotional marketing, public relations and other specialty communications services to over 5,000 clients in more than 100 countries. The company was founded in 1944 and is based in New York, New York.
OMC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Omnicom Group Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Omnicom Group Inc ranked in the 46th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Omnicom Group Inc ended up being:
In the past 5.52 years, Omnicom Group Inc has a compound free cash flow growth rate of -0.01%; that's better than just 21.93% of cash flow producing equities in the Consumer Cyclical sector, where it is classified.
Omnicom Group Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 5.25% of tickers in our DCF set.
OMC's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than merely 5.25% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CBRL, UFAB, DLA, FOSL, and THO can be thought of as valuation peers to OMC, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
Summary List Placement Hello and welcome to Insider Advertising. I'm senior advertising reporter Lauren Johnson, and here's what's going on: CEOs stay clear of Fox News' Maria Bartiromo Ad agency Hero Group sues Omnicom's DDB How much Snapchat creators make from Spotlight If this email was forwarded to you, sign up here for your daily insider's guide to advertising and media. Tips, comments, suggestions? Drop me a line at [email protected] or on Twitter at @LaurenJohnson. CEOs are steering clear of Fox News' Maria Bartiromo and denying her interviews, sources say Claire Atkinson and Sean Czarnecki report that some CEOs are denying interviews to Maria Bartiromo as she gets ready to try out on Fox News' opinion lineup. She and her team have been making calls to sources to help ...
Summary List Placement New York ad agency Hero Group sued Omnicom-owned agency DDB in federal court this week, alleging DDB "exploited" Hero to win the US Army contract and didn't pay it for two years of work. The suit filed in the Northern District Court of Illinois stems from a $4 billion Army account that DDB won in 2018 and claims misrepresentation, breach of contract, and fraud. The suit is seeking $100 million in damages based on an estimate of the revenue Hero Group would have earned if it worked with DDB on the entire 10-year contract, the suit claims. Hero Group founder and CEO Joe Anthony told Insider that former DDB US president Paul Gunning brought him on to help pitch the account in late 2016, using his experience working with the Army's past ad agencies, McCann and Leo Bur...
Communicators and marketers have long sought a solution for the problem of evaluating the effectiveness of earned media on business outcomes with the same precision as paid media. That is now possible with the launch of Omnicom Public Relations Group's (OPRG) patent-pending precision communications platform, omniearnedID™.