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: $104.67 DETAILS
HIGH: $146.00
LOW: $83.00
MEDIAN: $85.00
CONSENSUS: $104.67
UPSIDE: 41.16%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Leveraged Infrastructure 80% confidence

Primary model: EV/EBITDA × Default Multiple

Valuation Signal Overvalued Strong
Trading 3731.6% above fair value
Current Price $74.15
Bear Case $0.00 100.0% downside ($0.00 - $74.15) / $74.15 = -100.0% EBITDA $1B × 6.2x − $6B debt
Fair Value $1.94 97.4% downside ($1.94 - $74.15) / $74.15 = -97.4% EBITDA $1B × 7.8x − $6B debt
Bull Case $6.62 91.1% downside ($6.62 - $74.15) / $74.15 = -91.1% 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 31.8x

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) $104.67
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.
ℹ 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.
ℹ Wall Street's average price target is $104.67 (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