OMC

Omnicom Group Inc.Communication Services / Advertising AgenciesINTACT

Omnicom Group Inc., together with its subsidiaries, offers advertising, marketing, and corporate communications services. It provides a range of services in the areas of media and advertising, precision marketing, public relations, healthcare, branding and retail commerce, experiential, execution, and support. The company's services include advertising, branding, content marketing, crisis communications, customer data analytics and data-driven decision making, customer relationship management, decision sciences, digital experience design, digital transformation, e-commerce optimization, entertainment marketing, experiential marketing, field marketing, healthcare marketing and communications, in-store design, investor relations, and marketing research.Its services also comprise media planning and buying, merchandising and point of sale, mobile marketing, multi-cultural marketing, organizational communications, package design, performance marketing, product placement, promotional marketing, public affairs, public relations, retail media and e-commerce, shopper marketing, structured innovation, studio production, social media and influencer marketing, and sports and event marketing. It operates in the North and Latin America, Europe, the Middle East and Africa (EMEA), and the Asia Pacific. The company was incorporated in 1944 and is based in New York, New York.

Share Price
$79.01
52W: $66.33 - $89.57
DCF Fair Value
$286.21
+72.4% MoS
P/E (TTM)
213.5x
ROIC
11.6%
Operating Margin
15.4%
FCF Yield
18.9%
Debt / Equity
1.08x
Piotroski Score
7/9
Altman Z-Score
3.96
Market Cap
$22.5B

Price vs. Intrinsic Value Corridor

Margin of Safety Buy Zone (<25% Discount)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)
()
Period Range
$ - $
DCF Fair Value
$286.21
MOS Buy Target (-25%)
$214.66
Valuation Overlays:

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price
$79.01
DCF Fair Value
$285.68
+72.3% MoS
$4,261M
$100M$4,261M (Reported)$50,000M
7.7%
-5%10% (Target)35%
4.5%
0%5%20%
9.0%
6%9% (Standard)15% (High Risk)
2.5%
1% (GDP Floor)2.5% (Inflation)4.0%
$8,100M
-$100B CashBalance Sheet+$150B Debt
10-Yr PV of Cash Flows
$38.3B
PV of Terminal Value
$51.3B
Implied Enterprise Value
$89.5B
Implied Equity Value
$81.4B
YearYr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9Yr 10
Projected FCF ($M)$4,589$4,942$5,323$5,733$6,174$6,452$6,743$7,046$7,363$7,694
Present Value (PV)$4,210$4,160$4,110$4,061$4,013$3,847$3,688$3,536$3,390$3,250

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-361.5% Premium
$17.12

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $0.37BVPS: $35.22
Revised Graham Formula-1058.5% Premium
$6.82

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Buffett Owner Earnings18% Yield
$14.20 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $4.0BYield: 18%

Reverse DCF: Market Growth Expectation

EXTREMELY LOW BARRIER
-12.7% CAGR (Next 10 Yrs)

At the current price of $79.01, the market is assuming the business will compound Free Cash Flow at -12.7% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict
✓ Low market hurdle: Easy for a wide-moat compounder to beat.
Autonomous Thesis Underwriting

Surveil OMC with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Omnicom Group Inc.. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 15.4% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

Frequently Asked Questions: Omnicom Group Inc. (OMC) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Omnicom Group Inc..

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Omnicom Group Inc. has an estimated DCF intrinsic fair value of $286.21 per share compared to its current market price of $79.01. This represents an estimated 72.4% margin of safety (trading below fair value). Additionally, its classic Benjamin Graham Number stands at $17.12.

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