US Equities Analysis

OMC — Omnicom Group

Research evidence pack

Source-backed valuation visuals

Loading verified snapshot
Loading verified market, valuation, and statement data.

2. Company Fundamentals

2.1 Competitiveness

Metric Value
Operating Margins 11.92%
Profit Margins 0.32%
Return on Equity 2.02%
Return on Assets 4.47%
Free Float 0.28B
Dividend Yield 4.38%
Short Int % Utilisation 11.32%

2.2 Growth

Metric Value
Revenue Growth 69.2%
Free Cash Flow 5.07B
EBITDA 9.28 (Ratio)
Enterprise Value 29.29B
EV/Revenue 1.48
EV/EBITDA 9.28

Revenue growth of 69.2% places the company in a high-growth category.

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.)* 27.26%
Risk / Std Dev (Ann.)* 35.65%
1-Year Price Return* 19.37%

Latest Market Data (as of 2026-08-14, US Eastern time):

Metric Value
Last Price $87.57
52-Week Range $66.33 – $88.43
Observation Count 251 trading days

The return and risk statistics use daily adjusted closes from the retrieved one-year series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.

2.5 FCFF DCF Valuation

Valuation basis: This research model follows a five-year, unlevered FCFF DCF. It starts from reported annual operating inputs, forecasts revenue and operating cash conversion under an explicit mechanical policy, discounts FCFF at WACC, applies a Gordon-growth terminal value, and bridges enterprise value to an indicative common-equity value per share. It is an analytical estimate rather than a recommendation or personalised target price.

Step 1 — Forecast Operating Profit and NOPAT

Reported operating input Value
Revenue $17.27B
Prior annual revenue $15.69B
EBIT $541.50M
Tax rate 21.00%
NOPAT = EBIT × (1 − tax rate) $427.79M
Forecast start-growth basis 10.09%
Forecast policy latest reported annual revenue growth, bounded to -10.00% / 15.00%

Step 2 — Calculate FCFF

Current FCFF building block Value
NOPAT $427.79M
Add: depreciation & amortisation $276.70M
Less: capital expenditure -$149.80M
Less/(add): working-capital cash-flow movement $712.10M
Current unlevered FCFF $1.27B

Explicit FCFF forecast

Forecast year Revenue growth NOPAT D&A Capex Change in NWC FCFF Present value
1 10.09% $470.94M $304.61M -$164.91M $783.94M $1.39B $1.35B
2 8.19% $509.52M $329.57M -$216.21M $848.16M $1.47B $1.34B
3 6.29% $541.59M $350.31M -$269.98M $901.54M $1.52B $1.30B
4 4.40% $565.40M $365.71M -$323.78M $941.18M $1.55B $1.24B
5 2.50% $579.54M $374.86M -$374.86M $964.71M $1.54B $1.16B

Step 3 — Determine the Discount Rate (WACC)

WACC input Value
Risk-free rate 4.71%
Equity risk premium assumption 5.50%
Beta 0.66
Cost of equity 8.34%
Pre-tax cost of debt 2.99%
WACC 6.53%
WACC validation requires assumption review

Step 4 — Estimate Terminal Value

Terminal-value input Value
Perpetuity growth rate 2.50%
Terminal value $39.23B
Implied terminal EV / EBITDA 35.39x
Terminal value as % of enterprise value 81.73%

Step 5 — Discount Cash Flows to Enterprise Value

Enterprise-value component Value
Present value of explicit FCFF $6.39B
Present value of terminal value $28.59B
Indicated enterprise value $34.98B
Discounting convention mid-year for explicit FCFF; terminal value discounted at year-end five

Step 6 — Convert Enterprise Value to Equity Value

Equity bridge Value
Indicated enterprise value $34.98B
Less: gross interest-bearing debt $10.73B
Add: cash and equivalents $6.88B
Add: affiliate investments $0.00
Less: minority interests $1.01B
Indicated common equity value $30.11B

Step 7 — Calculate Indicative Value Per Share

Per-share output Value
Shares used 313,100,000.00
Share-count basis reported diluted weighted-average shares
Current market price $86.94
DCF indicative value per share $96.18
Indicative value vs. market price 10.62%

Model Integrity Checks

Check Result
Perpetuity growth is below the risk-free rate pass
Perpetuity growth is below WACC pass
WACC is within the configured operating-company range review required
Terminal-year FCFF is positive pass
Terminal capex converges to D&A pass
Terminal-value concentration within review band
Implied price differs from spot by more than 30% within review band

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks 3/4 evidenced checks
Lynch-inspired balance-and-growth checks 3/4 evidenced checks

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:44:37.177205 UTC; latest reported fiscal period: 2025-12-31 00:00:00. Default assumptions: five-year forecast, mid-year discounting for explicit FCFF, a maximum 2.50% perpetuity-growth rate below both WACC and the risk-free rate, historical operating-ratio persistence, and capex convergence to D&A by year five. No sell-side consensus or management guidance is substituted for reported inputs. This is research and analysis only, not personalized financial advice.

2.7 Quantitative Factor Diagnostics

Model basis: Daily issuer USD excess returns are regressed in-sample using ordinary least squares on matching regional Fama–French factors. FF3 estimates market, size, and value loadings; FF5 adds profitability and investment. Coefficients are descriptive historical exposures, not predictions.

Estimation input Value
Regional factor set US
Factor-return currency USD
Issuer-return basis USD adjusted total return
Estimation window 2025-08-19 to 2026-06-30
Aligned daily observations 217
Minimum observation requirement 120
Currency conversion for HK listings not required

Fama–French Three-Factor and Five-Factor Results

Diagnostic FF3 FF5
Annualised alpha -11.80% -1.54%
Adjusted R² 0.04 0.07
Annualised residual volatility 34.06% 33.35%
Factor loading (t-statistic) FF3 FF5
Market excess return (Mkt-RF) 0.32 (1.61) 0.58 (2.59)
Size (SMB) 0.56 (2.07) 0.38 (1.34)
Value (HML) 0.22 (0.93) -0.27 (-0.95)
Profitability (RMW) NM 0.21 (0.88)
Investment (CMA) NM 1.09 (2.63)

Definitions: Mkt-RF is the market return less the risk-free rate; SMB is small minus big; HML is high minus low book-to-market; RMW is robust minus weak profitability; CMA is conservative minus aggressive investment. Factor returns are sourced from the Kenneth R. French Data Library; issuer adjusted-return history is sourced from Yahoo Finance. For Hong Kong listings, adjusted HKD prices are converted into USD with daily USD/HKD closes before return calculation to match the USD regional factor basis. This is an in-sample historical regression; coefficients and t-statistics do not establish causation or predict future returns. This is research and analysis only, not personalized financial advice.

us-equity stock equity omc communication-services advertising nasdaq