Omnicom Group Inc. (OMC) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+53.0%

$126.87

vs $82.91 price

Levered DCF

$188.66

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

1.23

Distress zone

Rating

B-

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	-299.07×	11.41×	12.39×	12.75×	11.15×	14.21×	13.3×	12.52×
P/B	1.35×	4.03×	4.77×	5.16×	4.8×	4.36×	6.24×	6.52×
P/S	0.94×	1.08×	1.17×	1.17×	1.1×	1.02×	1.19×	1.09×
EV / EBITDA	26.88×	7.42×	7.97×	8.09×	7.16×	8×	8.27×	7.34×
Gross margin	17.3%	17.5%	17.0%	18.0%	17.7%	15.8%	16.9%	16.7%
Operating margin	15.0%	15.0%	14.3%	15.4%	15.0%	13.0%	14.2%	13.8%
Net margin	-0.3%	9.4%	9.5%	9.1%	9.8%	7.2%	9.0%	8.7%
Current ratio	0.93×	1×	0.95×	0.97×	0.98×	1×	0.91×	0.9×
Debt / equity	1.06×	1.64×	1.8×	2.06×	2.1×	2.25×	2.25×	1.92×
Interest coverage	9.82×	9.47×	9.63×	10.53×	10.24×	8.01×	8.91×	8.7×
Dividend yield	3.4%	3.3%	3.3%	3.5%	3.8%	4.2%	3.2%	3.3%
Payout ratio	-1008.4%	37.3%	40.4%	44.7%	42.4%	59.2%	42.1%	41.4%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	-0.5%	35.3%	38.5%	40.0%	42.7%	30.8%	46.9%	52.1%
Return on invested capital	1.5%	13.0%	12.4%	13.0%	13.0%	10.3%	13.4%	15.9%
Return on assets	-0.1%	5.0%	5.0%	4.8%	4.9%	3.4%	5.0%	5.4%
Free cash flow yield	17.1%	9.4%	7.8%	5.1%	8.1%	12.3%	9.8%	9.2%
Earnings yield	-0.3%	8.8%	8.1%	7.7%	8.9%	7.1%	7.5%	8.0%
Enterprise value	$22.2B	$19.4B	$19.3B	$19.2B	$17.3B	$14.8B	$19.9B	$17.8B
Net debt / EBITDA	7.14×	0.97×	0.86×	1.02×	0.65×	0.72×	0.88×	0.51×
Cash conversion cycle (days)	-136	-91	-93	-97	-116	-126	-118	-112