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Interpublic Group of Companies Inc
NYSE:IPG

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Interpublic Group of Companies Inc
NYSE:IPG
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Price: 24.57 USD -1.96% Market Closed
Market Cap: $8.9B

EV/OCF

11.6
Current
4%
Cheaper
vs 3-y average of 12.1

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
11.6
=
Enterprise Value
$10.6B
/
Operating Cash Flow
$915.2m

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
11.6
=
Enterprise Value
$10.6B
/
Operating Cash Flow
$915.2m

Valuation Scenarios

Interpublic Group of Companies Inc is trading below its 3-year average

If EV/OCF returns to its 3-Year Average (12.1), the stock would be worth $25.51 (4% upside from current price).

Statistics
Positive Scenarios
3/4
Maximum Downside
-3%
Maximum Upside
+44%
Average Upside
17%
Scenario EV/OCF Value Implied Price Upside/Downside
Current Multiple 11.6 $24.57
0%
3-Year Average 12.1 $25.51
+4%
5-Year Average 11.3 $23.92
-3%
Industry Average 14.3 $30.31
+23%
Country Average 16.7 $35.27
+44%

Forward EV/OCF
Today’s price vs future operating cash flow

Not enough data available to calculate forward EV/OCF

Peer Comparison

All Multiples
EV/OCF
P/E
All Countries
Close
Market Cap EV/OCF P/E
US
Interpublic Group of Companies Inc
NYSE:IPG
9.2B USD 11.6 16.8
US
Omnicom Group Inc
NYSE:OMC
24.4B USD 7.8 -448.5
FR
Publicis Groupe SA
PAR:PUB
19.8B EUR 6.8 12
UK
Informa PLC
LSE:INF
10.5B GBP 15 958.8
CN
Focus Media Information Technology Co Ltd
SZSE:002027
89.5B CNY 11.4 16.9
CN
BlueFocus Intelligent Communications Group Co Ltd
SZSE:300058
69.1B CNY 99.9 -304.7
CN
Leo Group Co Ltd
SZSE:002131
56.3B CNY 262 110.9
HK
QMMM Holdings Ltd
NASDAQ:QMMM
6.8B USD -1 075.4 -2 306.1
JP
Dentsu Group Inc
TSE:4324
792.8B JPY 10.3 -2.4
FR
JCDecaux SE
PAR:DEC
4.1B EUR 5.1 15.6
JP
CyberAgent Inc
TSE:4751
666.5B JPY 7.6 17.1
P/E Multiple
Earnings Growth PEG
US
Interpublic Group of Companies Inc
NYSE:IPG
Average P/E: 164
16.8
21%
0.8
US
Omnicom Group Inc
NYSE:OMC
Negative Multiple: -448.5 N/A N/A
FR
Publicis Groupe SA
PAR:PUB
12
11%
1.1
UK
Informa PLC
LSE:INF
958.8
335%
2.9
CN
F
Focus Media Information Technology Co Ltd
SZSE:002027
16.9
8%
2.1
CN
BlueFocus Intelligent Communications Group Co Ltd
SZSE:300058
Negative Multiple: -304.7 N/A N/A
CN
Leo Group Co Ltd
SZSE:002131
110.9
N/A N/A
HK
QMMM Holdings Ltd
NASDAQ:QMMM
Negative Multiple: -2 306.1 N/A N/A
JP
Dentsu Group Inc
TSE:4324
Negative Multiple: -2.4 N/A N/A
FR
JCDecaux SE
PAR:DEC
15.6
7%
2.2
JP
CyberAgent Inc
TSE:4751
17.1
14%
1.2

Market Distribution

Lower than 70% of companies in the United States of America
Percentile
30th
Based on 9 518 companies
30th percentile
11.6
Low
0 — 11.7
Typical Range
11.7 — 23.6
High
23.6 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 11.7
Median 16.7
70th Percentile 23.6
Max 3 178 983.5

Interpublic Group of Companies Inc
Glance View

Interpublic Group of Companies Inc. (IPG) is a giant within the advertising and marketing industry, weaving together a tapestry of creative and strategic communication services that shape how brands are perceived in a global market. Founded in 1961, IPG has evolved into a holding company for some of the most renowned agencies, which include McCann, MullenLowe, and FCB, among others. This means they're not directly crafting the ads you see, but rather providing a structure and resources for their family of agencies to do so. What sets IPG apart is its holistic approach to brand-building, offering services that span traditional advertising, digital marketing, public relations, media management, and even experiential marketing. Each of these components works synergistically to create a cohesive narrative for clients, ensuring marketing messages are not only seen but also resonate with targeted audiences. Financially, IPG thrives by charging its clients for the variety of services offered by its agencies. This often takes the form of commissions, fees, or a combination of both, depending on the complexity and scope of the featured campaigns. IPG’s success is further bolstered by its investment in digital transformation and data-driven strategies, areas that continue to see significant growth with the rise of technology. By staying at the forefront of communication trends and anticipating client needs, IPG ensures its bottom line stays robust. Moreover, its global reach allows it to tap into diverse markets, leveraging insights from different cultures and consumer behaviors to craft bespoke marketing solutions. Thus, IPG doesn't just create advertisements; it engineers strategic brand experiences designed to cultivate lasting consumer relationships and drive client growth.

IPG Intrinsic Value
41.69 USD
Undervaluation 41%
Intrinsic Value
Price $24.57
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