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:
Below please find a table outlining a discounted cash flow forecast for OMC, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Omnicom Group Inc ranked in the 48th percentile in terms of potential gain offered. In terms of the factors that were most noteworthy in this DCF analysis for OMC, they are:
The company has produced more trailing twelve month cash flow than 90.02% of its sector Consumer Cyclical.
Omnicom Group Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than just 5.59% of tickers in our DCF set.
OMC's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than just 5.59% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as OMC, try UONE, FOSL, NYT, PKG, and FL.
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