Stagwell Inc. (STGW) 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

+8.6%

$11.70

vs $10.77 price

Levered DCF

$10.64

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

1.23

Distress zone

Rating

Overall 2 / 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	37.62×	322.55×	6,027.27×	28.23×	21.67×	3.44×	11.12×	-1.21×
P/B	1.42×	2.2×	2.18×	1.55×	2.11×	0.54×	-0.83×	-0.48×
P/S	0.37×	0.26×	0.31×	0.29×	0.53×	0.22×	0.31×	0.1×
EV / EBITDA	6.39×	6.33×	5.36×	5.84×	9.68×	3×	16.48×	32.74×
Gross margin	36.5%	35.1%	35.9%	37.7%	38.3%	35.6%	40.1%	29.7%
Operating margin	5.5%	4.7%	3.6%	5.9%	3.0%	9.4%	6.5%	5.8%
Net margin	1.0%	0.1%	0.0%	0.7%	1.4%	6.3%	2.9%	-8.4%
Current ratio	0.79×	0.83×	0.75×	0.75×	0.78×	1.09×	0.76×	0.79×
Debt / equity	2.12×	5×	4.19×	3.12×	4.33×	0.76×	-5.01×	-3.06×
Interest coverage	1.65×	1.44×	1×	2.09×	1.4×	13.46×	4.7×	0×
Dividend yield	0.0%	0.0%	0.0%	0.0%	29.7%	59.3%	20.9%	0.1%
Payout ratio	0.0%	0.0%	0.0%	0.0%	1108.6%	205.0%	218.5%	-0.2%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	3.8%	0.7%	0.0%	4.0%	5.7%	15.7%	-8.0%	39.7%
Return on invested capital	2.5%	3.4%	1.9%	3.9%	1.0%	11.1%	2.6%	9.9%
Return on assets	0.7%	0.1%	0.0%	0.5%	0.5%	5.6%	1.0%	-7.7%
Free cash flow yield	22.9%	12.2%	5.0%	40.5%	22.7%	63.6%	27.3%	-0.9%
Earnings yield	2.7%	0.3%	0.0%	2.6%	2.7%	28.9%	9.6%	-82.9%
Enterprise value	$2.6B	$2.3B	$2.2B	$2.1B	$2.2B	$373.4M	$1.2B	$1.1B
Net debt / EBITDA	3.72×	4.28×	3.42×	3.7×	6.24×	1.43×	13.93×	28.18×
Cash conversion cycle (days)	5	25	24	22	79	3	87	31