IPG
The Interpublic Group of Companies, Inc.
$24.57
Stable Earnings Power
65%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Undervalued
Trading 30.9% below fair value
You pay
$24.57
Bear
$28.44
Fair
$35.55
Bull
$42.66
Bear
$28.44
+15.8%
$2.37 × 12x P/E
Fair
$35.55
+44.7%
$2.37 × 15x P/E
Bull
$42.66
+73.6%
$2.37 × 18x P/E
Adjust Assumptions
15.0x
2.37$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
10.4x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (34 analysts)
$36.57
Divergence from AlphaVal
3%
Summary
Applying a 15x P/E to adjusted EPS of $2.37, the base-case value is $35.55 per share. DDM cross-check: $38.13.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples