DCF Tool

OMC

Omnicom Group, Inc. – Advertising Agencies
omnicom group is the leading global marketing communications company providing the best talent, creativity and digital innovation in the world of integrated marketing services for more than 200 brands - including some of the world’s most iconic, innovative and successful. about: omnicom group (nyse: omc) is a strategic holding company that has the industry’s most diverse portfolio of more than1,000 companies serving over 5,000 clients in more than 100 countries. omnicom and its agencies have a corporate culture distinguished by a long-standing belief in the power of learning and training. the company offers the industry’s richest opportunities for individual growth, with offerings that include omnicom university, catalyst at ddb, bbdo university, tiger academy at tbwa, ketchum university, omd foundations, and more - all contributing to enhancing employees’ professional breadth and our success in retaining top talent. year after year, omnicom brands win the lion’s share of industry awar
Analysis Results
Intrinsic Value $197.93
Latest Price $81.81
Relative Value 59% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 1.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 1.6%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 1.29 1.24
2024 1.31 1.22
2025 1.33 1.19
2026 1.35 1.17
2027 1.37 1.15
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 41.1 billion. This corresponds to a present value of 33.2 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 5.97 billion. Adding in the terminal value gives a total present value of 39.2 billion.

There are presently 198.0 million outstanding shares, so the intrinsic value per share is 197.93.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 14,613,000,000
Current Cash 4,342,500,000
Current Liabilities 15,052,800,000
Current Debt 16,900,000
Non-Cash Working Capital (NCWC) -4,765,400,000
Change in NCWC 858,500,000
EBIT 2,201,900,000
Tax Provision 546,800,000
Depreciation and Amortization 219,400,000
Capital Expenditure -78,200,000
Unlevered Free Cash Flow 2,584,354,578
Current Assets 15,909,500,000
Current Cash 5,316,800,000
Current Liabilities 16,226,200,000
Current Debt 9,600,000
Non-Cash Working Capital (NCWC) -5,623,900,000
Change in NCWC -92,300,000
EBIT 2,154,900,000
Tax Provision 488,700,000
Depreciation and Amortization 212,100,000
Capital Expenditure -665,800,000
Unlevered Free Cash Flow 1,081,374,262
Current Assets 15,590,100,000
Current Cash 5,600,500,000
Current Liabilities 15,525,100,000
Current Debt 3,900,000
Non-Cash Working Capital (NCWC) -5,531,600,000
Change in NCWC -438,600,000
EBIT 1,869,900,000
Tax Provision 381,700,000
Depreciation and Amortization 222,600,000
Capital Expenditure -75,400,000
Unlevered Free Cash Flow 1,069,593,882
Current Assets 14,584,700,000
Current Cash 4,309,300,000
Current Liabilities 15,980,900,000
Current Debt 612,500,000
Non-Cash Working Capital (NCWC) -5,093,000,000
Change in NCWC -399,500,000
EBIT 2,124,300,000
Tax Provision 504,400,000
Depreciation and Amortization 231,500,000
Capital Expenditure -102,200,000
Unlevered Free Cash Flow 1,301,867,396
Current Assets 13,726,900,000
Current Cash 3,657,900,000
Current Liabilities 15,270,200,000
Current Debt 507,700,000
Non-Cash Working Capital (NCWC) -4,693,500,000
Change in NCWC 84,000,000
EBIT 1,964,000,000
Tax Provision 492,700,000
Depreciation and Amortization 264,000,000
Capital Expenditure -195,700,000
Unlevered Free Cash Flow 1,615,750,237
Current Assets 14,116,000,000
Current Cash 3,796,400,000
Current Liabilities 15,108,900,000
Current Debt 11,800,000
Non-Cash Working Capital (NCWC) -4,777,500,000
Change in NCWC -494,600,000
EBIT 2,063,200,000
Tax Provision 696,200,000
Depreciation and Amortization 282,100,000
Capital Expenditure -156,000,000
Unlevered Free Cash Flow 934,056,153
Current Assets 12,722,000,000
Current Cash 3,022,800,000
Current Liabilities 14,010,900,000
Current Debt 28,800,000
Non-Cash Working Capital (NCWC) -4,282,900,000
Change in NCWC -430,700,000
EBIT 2,014,300,000
Tax Provision 600,500,000
Depreciation and Amortization 292,900,000
Capital Expenditure -165,500,000
Unlevered Free Cash Flow 1,056,178,026
Current Assets 11,980,500,000
Current Cash 2,619,700,000
Current Liabilities 14,219,600,000
Current Debt 1,006,600,000
Non-Cash Working Capital (NCWC) -3,852,200,000
Change in NCWC -598,900,000
EBIT 1,928,500,000
Tax Provision 583,600,000
Depreciation and Amortization 291,100,000
Capital Expenditure -202,700,000
Unlevered Free Cash Flow 788,188,808
Current Assets 11,190,500,000
Current Cash 2,390,300,000
Current Liabilities 12,061,100,000
Current Debt 7,600,000
Non-Cash Working Capital (NCWC) -3,253,300,000
Change in NCWC 94,500,000
EBIT 1,960,300,000
Tax Provision 593,100,000
Depreciation and Amortization 294,400,000
Capital Expenditure -213,000,000
Unlevered Free Cash Flow 1,499,547,973
Current Assets 11,652,300,000
Current Cash 2,728,700,000
Current Liabilities 12,277,700,000
Current Debt 6,300,000
Non-Cash Working Capital (NCWC) -3,347,800,000
Change in NCWC -441,300,000
EBIT 1,882,600,000
Tax Provision 565,200,000
Depreciation and Amortization 284,800,000
Capital Expenditure -212,000,000
Unlevered Free Cash Flow 879,530,868
Current Assets 11,661,400,000
Current Cash 2,698,900,000
Current Liabilities 11,875,800,000
Current Debt 6,800,000
Non-Cash Working Capital (NCWC) -2,906,500,000
Change in NCWC 137,800,000
EBIT 1,789,200,000
Tax Provision 527,100,000
Depreciation and Amortization 282,700,000
Capital Expenditure -226,300,000
Unlevered Free Cash Flow 1,409,955,198

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