Omnicom Group Inc. logo OMC - Omnicom Group Inc.

Price: -- -- | CONSENSUS: Hold DETAILS
STRONG
BUY
0
BUY 11
HOLD 20
SELL 3
STRONG
SELL
0
| PRICE TARGET: $101.00 DETAILS
HIGH: $146.00
LOW: $83.00
MEDIAN: $87.50
CONSENSUS: $101.00
UPSIDE: 17.02%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Leveraged Infrastructure 80% confidence

Primary model: EV/EBITDA × Default Multiple

Valuation Signal Overvalued Strong
Trading 4360.0% above fair value
Current Price $86.31
Bear Case $0.00 100.0% downside ($0.00 - $86.31) / $86.31 = -100.0% EBITDA $1B × 6.2x − $6B debt
Fair Value $1.94 97.8% downside ($1.94 - $86.31) / $86.31 = -97.8% EBITDA $1B × 7.8x − $6B debt
Bull Case $6.62 92.3% downside ($6.62 - $86.31) / $86.31 = -92.3% EBITDA $1B × 9.3x − $6B debt

Adjust Assumptions

7.8x

Key Value Driver

EV/EBITDA multiple (7.8x) vs. 7.1× leverage

Implied Market Multiple 35.8x

Plain-Language Summary

At 7.8x EV/EBITDA on $1B EBITDA, enterprise value is $6B. After subtracting $6B net debt, equity value is $1.94 per share.

Analyst Consensus (External Reference)

Never blended into the bear/base/bull estimates above -- shown only as an outside comparison.

Average Target (34 analysts) $101.00
Analyst Range $83.00 – $146.00
Divergence from AlphaVal 98%

Warnings

Debt is 7.1x annual operating profit. Because the company carries so much debt, even small shifts in business value cause big swings in the stock price.
We value this business based on total operating profit relative to total enterprise value (debt + equity). Profit-per-share metrics are unreliable when debt makes up most of the company's value.
Wall Street's average price target is $101.00 (from 34 analysts). Our estimate is 98% below the consensus -- consider that gap carefully.

Key Risks

  • Debt refinancing at higher rates compresses equity value quickly
  • EBITDA flatters — capex, interest, and taxes eat the cash flow
  • Cord-cutting and wireless substitution are structural headwinds for cable