OMC - Omnicom Group Inc.
Price:
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CONSENSUS:
Hold
DETAILS
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PRICE TARGET:
$101.00
DETAILS
HIGH:
$146.00
LOW:
$83.00
MEDIAN:
$87.50
CONSENSUS:
$101.00
UPSIDE:
17.02%
AlphaVal
Deterministic, archetype-aware fair value
Leveraged Infrastructure
80% confidence
Primary model: EV/EBITDA × Default Multiple
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