IPG
The Interpublic Group of Companies, Inc.
$24.57
Stable Earnings Power
65%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Fair Value
Trading 22.0% below fair value
You pay
$24.57
Bear
$25.19
Fair
$31.49
Bull
$37.78
Bear
$25.19
+2.5%
$1.95 × 12x P/E
Fair
$31.49
+28.2%
$1.95 × 15x P/E
Bull
$37.78
+53.8%
$1.95 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
12.6x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $36.57 from 34 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $31.49 per share.
Warnings
Dividend-based valuation: $38.13 (above our primary estimate by 30%). Large gaps may signal the dividend doesn't reflect full earning power.
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