Omnicom Group Inc. (OMC) DCF Valuation
TGM's two-stage DCF values Omnicom Group Inc. (OMC) between $80.54 and $171.41 depending on assumptions, with a base case of $115.51. Growth is taken from the company's own record (blend of 5-year revenue and FCF growth), fading to 2.5% long-run; the discount rate (7.5%) reflects its beta.
What would today's price require?
$76.51 is justified only if free cash flow grows about -0.8% a year (fading to 2.5% long-run) at a 7.5% required return — slower than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 4.5%/yr | 8.5% | $80.54 |
| Base case | 7.5%/yr | 7.5% | $115.51 |
| Optimistic | 10.5%/yr | 6.5% | $171.41 |
| Analyst DCF (FMP) | independent reference — different model | $151.82 | |
Current Price
$76.51
Market-Implied Growth
-0.8%/yr
vs +6.4% 5Y actual
Model Scenario Range
$80.54 – $171.41
model output — not a price target
OMC DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for OMC (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $1.5B · 0.29B shares · net debt $4.3B
Estimated Fair Value
$142.09
+85.7% vs $76.51
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 7.5%/yr FCF growth and 10-year horizon fixed. Green = above today's $76.51; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 5.5% | $200 | $223 | $255 | $298 | $364 |
| 6.5% | $154 | $167 | $184 | $206 | $234 |
| 7.5% | $124 | $132 | $142 | $154 | $170 |
| 8.5% | $102 | $108 | $114 | $122 | $131 |
| 9.5% | $85.94 | $89.85 | $94.32 | $99.47 | $105 |
About Omnicom Group Inc.
Omnicom Group Inc., through its network of subsidiaries, stands as a premier global provider of comprehensive advertising, marketing, and corporate communications solutions. The company's core expertise extends across pivotal areas such as traditional and digital advertising, customer relationship management (CRM), public relations, and specialized healthcare communications. Its extensive service portfolio delivers a wide array of strategic and creative solutions. These offerings include branding, content creation, corporate social responsibility consulting, crisis management, data analytics, digital transformation, entertainment and experiential marketing, financial/corporate business-to-business advertising, graphic design, investor relations, media planning and purchasing, mobile and social media marketing, and package design. Additionally, Omnicom provides product placement, promotional marketing, public affairs, retail marketing, sales support, search engine optimization (SEO), shopper marketing, and diverse interactive and direct marketing initiatives, offering clients a complete suite of communication strategies. The company boasts a significant international footprint, conducting operations throughout the United States, Canada, Puerto Rico, South America, Mexico, Europe, the Middle East, Africa, Australia, Greater China, India, Japan, Korea, New Zealand, Singapore, and various other Asian nations. Established in 1944, Omnicom Group Inc. is headquartered in New York, New York.
- Sector
- Communication Services
- Industry
- Advertising Agencies
- CEO
- John D. Wren