Intrinsic value of Omnicom Group - OMC

Previous Close

$68.59

  Intrinsic Value

$165.26

stock screener

  Rating & Target

str. buy

+141%

Previous close

$68.59

 
Intrinsic value

$165.26

 
Up/down potential

+141%

 
Rating

str. buy

We calculate the intrinsic value of OMC stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2017), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 15.8

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  15,579
  15,938
  16,347
  16,807
  17,317
  17,876
  18,485
  19,144
  19,854
  20,616
  21,431
  22,300
  23,227
  24,211
  25,255
  26,362
  27,533
  28,772
  30,081
  31,464
  32,922
  34,460
  36,081
  37,789
  39,588
  41,483
  43,476
  45,574
  47,781
  50,103
Variable operating expenses, $m
  13,535
  13,824
  14,154
  14,525
  14,936
  15,387
  15,878
  16,409
  16,982
  17,596
  17,283
  17,984
  18,731
  19,525
  20,367
  21,260
  22,204
  23,204
  24,259
  25,374
  26,550
  27,790
  29,098
  30,475
  31,926
  33,454
  35,062
  36,754
  38,534
  40,406
Fixed operating expenses, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  13,535
  13,824
  14,154
  14,525
  14,936
  15,387
  15,878
  16,409
  16,982
  17,596
  17,283
  17,984
  18,731
  19,525
  20,367
  21,260
  22,204
  23,204
  24,259
  25,374
  26,550
  27,790
  29,098
  30,475
  31,926
  33,454
  35,062
  36,754
  38,534
  40,406
Operating income, $m
  2,045
  2,114
  2,193
  2,282
  2,381
  2,489
  2,607
  2,735
  2,872
  3,019
  4,148
  4,316
  4,495
  4,686
  4,888
  5,102
  5,329
  5,569
  5,822
  6,090
  6,372
  6,670
  6,983
  7,314
  7,662
  8,029
  8,415
  8,821
  9,248
  9,697
EBITDA, $m
  4,059
  4,153
  4,259
  4,379
  4,512
  4,657
  4,816
  4,988
  5,173
  5,371
  5,584
  5,810
  6,052
  6,308
  6,580
  6,868
  7,174
  7,497
  7,838
  8,198
  8,578
  8,978
  9,401
  9,846
  10,315
  10,808
  11,328
  11,874
  12,449
  13,054
Interest expense (income), $m
  570
  266
  289
  317
  350
  386
  426
  470
  518
  570
  626
  686
  750
  819
  892
  970
  1,052
  1,139
  1,232
  1,329
  1,433
  1,542
  1,656
  1,778
  1,906
  2,040
  2,182
  2,331
  2,489
  2,654
  2,828
Earnings before tax, $m
  1,779
  1,825
  1,876
  1,933
  1,995
  2,063
  2,137
  2,216
  2,302
  2,393
  3,462
  3,566
  3,676
  3,794
  3,918
  4,050
  4,190
  4,337
  4,493
  4,657
  4,830
  5,013
  5,206
  5,408
  5,622
  5,847
  6,083
  6,332
  6,594
  6,869
Tax expense, $m
  480
  493
  507
  522
  539
  557
  577
  598
  621
  646
  935
  963
  993
  1,024
  1,058
  1,094
  1,131
  1,171
  1,213
  1,257
  1,304
  1,354
  1,406
  1,460
  1,518
  1,579
  1,642
  1,710
  1,780
  1,855
Net income, $m
  1,299
  1,332
  1,369
  1,411
  1,456
  1,506
  1,560
  1,618
  1,680
  1,747
  2,527
  2,603
  2,684
  2,769
  2,860
  2,957
  3,058
  3,166
  3,280
  3,400
  3,526
  3,660
  3,800
  3,948
  4,104
  4,268
  4,441
  4,622
  4,814
  5,015

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  25,415
  26,000
  26,668
  27,418
  28,249
  29,161
  30,154
  31,229
  32,388
  33,631
  34,960
  36,379
  37,890
  39,496
  41,199
  43,005
  44,916
  46,937
  49,073
  51,327
  53,706
  56,215
  58,860
  61,647
  64,581
  67,671
  70,924
  74,346
  77,947
  81,734
Adjusted assets (=assets-cash), $m
  25,415
  26,000
  26,668
  27,418
  28,249
  29,161
  30,154
  31,229
  32,388
  33,631
  34,960
  36,379
  37,890
  39,496
  41,199
  43,005
  44,916
  46,937
  49,073
  51,327
  53,706
  56,215
  58,860
  61,647
  64,581
  67,671
  70,924
  74,346
  77,947
  81,734
Revenue / Adjusted assets
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
Average production assets, $m
  10,438
  10,678
  10,953
  11,261
  11,602
  11,977
  12,385
  12,826
  13,302
  13,812
  14,359
  14,941
  15,562
  16,221
  16,921
  17,662
  18,447
  19,277
  20,155
  21,081
  22,058
  23,088
  24,174
  25,319
  26,524
  27,793
  29,129
  30,535
  32,014
  33,569
Working capital, $m
  -10,672
  -10,917
  -11,198
  -11,513
  -11,862
  -12,245
  -12,662
  -13,113
  -13,600
  -14,122
  -14,680
  -15,276
  -15,910
  -16,584
  -17,300
  -18,058
  -18,860
  -19,709
  -20,606
  -21,553
  -22,552
  -23,605
  -24,716
  -25,886
  -27,118
  -28,416
  -29,781
  -31,218
  -32,730
  -34,321
Total debt, $m
  5,355
  5,878
  6,476
  7,148
  7,892
  8,708
  9,597
  10,559
  11,595
  12,708
  13,898
  15,168
  16,520
  17,957
  19,482
  21,098
  22,808
  24,617
  26,528
  28,546
  30,676
  32,921
  35,288
  37,782
  40,409
  43,174
  46,085
  49,148
  52,371
  55,761
Total liabilities, $m
  22,747
  23,270
  23,868
  24,539
  25,283
  26,099
  26,988
  27,950
  28,987
  30,099
  31,290
  32,559
  33,912
  35,349
  36,873
  38,489
  40,200
  42,009
  43,920
  45,938
  48,067
  50,313
  52,680
  55,174
  57,800
  60,566
  63,477
  66,540
  69,762
  73,152
Total equity, $m
  2,669
  2,730
  2,800
  2,879
  2,966
  3,062
  3,166
  3,279
  3,401
  3,531
  3,671
  3,820
  3,978
  4,147
  4,326
  4,515
  4,716
  4,928
  5,153
  5,389
  5,639
  5,903
  6,180
  6,473
  6,781
  7,106
  7,447
  7,806
  8,184
  8,582
Total liabilities and equity, $m
  25,416
  26,000
  26,668
  27,418
  28,249
  29,161
  30,154
  31,229
  32,388
  33,630
  34,961
  36,379
  37,890
  39,496
  41,199
  43,004
  44,916
  46,937
  49,073
  51,327
  53,706
  56,216
  58,860
  61,647
  64,581
  67,672
  70,924
  74,346
  77,946
  81,734
Debt-to-equity ratio
  2.010
  2.150
  2.310
  2.480
  2.660
  2.840
  3.030
  3.220
  3.410
  3.600
  3.790
  3.970
  4.150
  4.330
  4.500
  4.670
  4.840
  4.990
  5.150
  5.300
  5.440
  5.580
  5.710
  5.840
  5.960
  6.080
  6.190
  6.300
  6.400
  6.500
Adjusted equity ratio
  0.105
  0.105
  0.105
  0.105
  0.105
  0.105
  0.105
  0.105
  0.105
  0.105
  0.105
  0.105
  0.105
  0.105
  0.105
  0.105
  0.105
  0.105
  0.105
  0.105
  0.105
  0.105
  0.105
  0.105
  0.105
  0.105
  0.105
  0.105
  0.105
  0.105

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,299
  1,332
  1,369
  1,411
  1,456
  1,506
  1,560
  1,618
  1,680
  1,747
  2,527
  2,603
  2,684
  2,769
  2,860
  2,957
  3,058
  3,166
  3,280
  3,400
  3,526
  3,660
  3,800
  3,948
  4,104
  4,268
  4,441
  4,622
  4,814
  5,015
Depreciation, amort., depletion, $m
  2,014
  2,038
  2,066
  2,097
  2,131
  2,168
  2,209
  2,253
  2,301
  2,352
  1,436
  1,494
  1,556
  1,622
  1,692
  1,766
  1,845
  1,928
  2,015
  2,108
  2,206
  2,309
  2,417
  2,532
  2,652
  2,779
  2,913
  3,053
  3,201
  3,357
Funds from operations, $m
  3,313
  3,371
  3,435
  3,508
  3,587
  3,674
  3,769
  3,871
  3,981
  4,099
  3,963
  4,097
  4,240
  4,392
  4,552
  4,723
  4,903
  5,094
  5,295
  5,508
  5,732
  5,968
  6,218
  6,480
  6,756
  7,047
  7,354
  7,676
  8,015
  8,371
Change in working capital, $m
  -209
  -245
  -281
  -315
  -349
  -383
  -417
  -451
  -486
  -522
  -558
  -596
  -634
  -674
  -715
  -758
  -803
  -849
  -897
  -947
  -999
  -1,054
  -1,111
  -1,170
  -1,232
  -1,297
  -1,366
  -1,437
  -1,512
  -1,590
Cash from operations, $m
  3,522
  3,616
  3,716
  3,823
  3,936
  4,057
  4,186
  4,323
  4,467
  4,621
  4,521
  4,693
  4,874
  5,066
  5,268
  5,481
  5,706
  5,943
  6,192
  6,455
  6,731
  7,022
  7,328
  7,650
  7,989
  8,345
  8,719
  9,113
  9,527
  9,962
Maintenance CAPEX, $m
  -1,024
  -1,044
  -1,068
  -1,095
  -1,126
  -1,160
  -1,198
  -1,238
  -1,283
  -1,330
  -1,381
  -1,436
  -1,494
  -1,556
  -1,622
  -1,692
  -1,766
  -1,845
  -1,928
  -2,015
  -2,108
  -2,206
  -2,309
  -2,417
  -2,532
  -2,652
  -2,779
  -2,913
  -3,053
  -3,201
New CAPEX, $m
  -201
  -240
  -274
  -308
  -341
  -375
  -408
  -442
  -476
  -510
  -546
  -583
  -620
  -659
  -700
  -742
  -785
  -830
  -877
  -926
  -977
  -1,030
  -1,086
  -1,144
  -1,205
  -1,269
  -1,336
  -1,406
  -1,479
  -1,555
Cash from investing activities, $m
  -1,225
  -1,284
  -1,342
  -1,403
  -1,467
  -1,535
  -1,606
  -1,680
  -1,759
  -1,840
  -1,927
  -2,019
  -2,114
  -2,215
  -2,322
  -2,434
  -2,551
  -2,675
  -2,805
  -2,941
  -3,085
  -3,236
  -3,395
  -3,561
  -3,737
  -3,921
  -4,115
  -4,319
  -4,532
  -4,756
Free cash flow, $m
  2,298
  2,332
  2,374
  2,419
  2,469
  2,522
  2,580
  2,643
  2,709
  2,780
  2,594
  2,674
  2,760
  2,850
  2,946
  3,047
  3,155
  3,268
  3,387
  3,513
  3,646
  3,786
  3,933
  4,088
  4,252
  4,423
  4,604
  4,794
  4,995
  5,205
Issuance/(repayment) of debt, $m
  430
  523
  598
  671
  744
  816
  889
  962
  1,037
  1,112
  1,190
  1,270
  1,352
  1,437
  1,525
  1,616
  1,710
  1,809
  1,911
  2,018
  2,129
  2,246
  2,367
  2,494
  2,627
  2,766
  2,911
  3,063
  3,223
  3,390
Issuance/(repurchase) of shares, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  430
  523
  598
  671
  744
  816
  889
  962
  1,037
  1,112
  1,190
  1,270
  1,352
  1,437
  1,525
  1,616
  1,710
  1,809
  1,911
  2,018
  2,129
  2,246
  2,367
  2,494
  2,627
  2,766
  2,911
  3,063
  3,223
  3,390
Total cash flow (excl. dividends), $m
  2,728
  2,855
  2,972
  3,091
  3,213
  3,339
  3,469
  3,605
  3,746
  3,893
  3,784
  3,944
  4,112
  4,287
  4,471
  4,663
  4,865
  5,077
  5,298
  5,531
  5,775
  6,031
  6,300
  6,582
  6,878
  7,189
  7,515
  7,858
  8,217
  8,594
Retained Cash Flow (-), $m
  -54
  -61
  -70
  -79
  -87
  -96
  -104
  -113
  -122
  -131
  -140
  -149
  -159
  -169
  -179
  -190
  -201
  -212
  -224
  -237
  -250
  -263
  -278
  -293
  -308
  -324
  -342
  -359
  -378
  -398
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  76
  78
  80
  82
  84
  87
  89
  92
  96
  99
  103
  107
  112
  116
  121
  126
  132
  138
  144
  150
  157
  165
  172
  180
  189
  198
  207
  217
  228
  239
Cash available for distribution, $m
  2,675
  2,794
  2,902
  3,012
  3,125
  3,243
  3,365
  3,492
  3,624
  3,762
  3,644
  3,795
  3,953
  4,119
  4,292
  4,474
  4,664
  4,864
  5,074
  5,294
  5,525
  5,768
  6,022
  6,290
  6,570
  6,865
  7,174
  7,498
  7,839
  8,197
Discount rate, %
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
  2,564
  2,558
  2,525
  2,480
  2,423
  2,354
  2,273
  2,182
  2,082
  1,972
  1,731
  1,620
  1,503
  1,383
  1,260
  1,137
  1,015
  896
  781
  673
  572
  479
  395
  320
  256
  200
  154
  116
  86
  62
Current shareholders' claim on cash, %
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Omnicom Group Inc. is a holding company. The Company provides advertising, marketing and corporate communications services. The Company's branded networks and agencies operate in all markets around the world and provide a range of services, which it groups into four disciplines: advertising, customer relationship management (CRM), public relations and specialty communications. The Company caters to various industry sectors, such as food and beverage, consumer products, pharmaceuticals and healthcare, financial services, technology, travel and entertainment, telecommunications and retail. The Company's branded networks and agencies conduct business on a global basis and operate in the geographic regions, such as The Americas, which includes North America and Latin America; EMEA, which includes Europe, the Middle East and Africa, and Asia Pacific, which includes Australia, China, India, Japan, Korea, New Zealand, Singapore and other Asian countries.

FINANCIAL RATIOS  of  Omnicom Group (OMC)

Valuation Ratios
P/E Ratio 14
Price to Sales 1
Price to Book 7.4
Price to Tangible Book
Price to Cash Flow 8.3
Price to Free Cash Flow 9.1
Growth Rates
Sales Growth Rate 1.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -18.2%
Cap. Spend. - 3 Yr. Gr. Rate -4.8%
Financial Strength
Quick Ratio 104
Current Ratio 0.1
LT Debt to Equity 227.6%
Total Debt to Equity 228.9%
Interest Coverage 4
Management Effectiveness
Return On Assets 6.8%
Ret/ On Assets - 3 Yr. Avg. 6%
Return On Total Capital 16.3%
Ret/ On T. Cap. - 3 Yr. Avg. 15.4%
Return On Equity 49.8%
Return On Equity - 3 Yr. Avg. 41.8%
Asset Turnover 0.7
Profitability Ratios
Gross Margin 25.7%
Gross Margin - 3 Yr. Avg. 25.5%
EBITDA Margin 17.5%
EBITDA Margin - 3 Yr. Avg. 15.8%
Operating Margin 13%
Oper. Margin - 3 Yr. Avg. 12.8%
Pre-Tax Margin 11.9%
Pre-Tax Margin - 3 Yr. Avg. 11.8%
Net Profit Margin 7.5%
Net Profit Margin - 3 Yr. Avg. 7.3%
Effective Tax Rate 32.6%
Eff/ Tax Rate - 3 Yr. Avg. 32.7%
Payout Ratio 44%

OMC stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the OMC stock intrinsic value calculation we used $15274 million for the last fiscal year's total revenue generated by Omnicom Group. The default revenue input number comes from 2017 income statement of Omnicom Group. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our OMC stock valuation model: a) initial revenue growth rate of 2% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for OMC is calculated based on our internal credit rating of Omnicom Group, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Omnicom Group.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of OMC stock the variable cost ratio is equal to 87%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for OMC stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for Omnicom Group.

Corporate tax rate of 27% is the nominal tax rate for Omnicom Group. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the OMC stock is equal to 0.5%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for OMC are equal to 67%.

Life of production assets of 10 years is the average useful life of capital assets used in Omnicom Group operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for OMC is equal to -68.5%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $2615 million for Omnicom Group - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 231 million for Omnicom Group is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Omnicom Group at the current share price and the inputted number of shares is $15.8 billion.

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COMPANY NEWS

▶ Clemenger BBDO Buys Levo Digital   [Aug-15-18 03:15PM  PR Newswire]
▶ TracyLocke Takes Home 2018 Change Agency Award   [Aug-07-18 02:33PM  PR Newswire]
▶ McDonald's We Are Unlimited agency growing its creative ranks   [Aug-03-18 01:12PM  American City Business Journals]
▶ Addison 'martech' company acquired by Omnicom Group   [Aug-02-18 03:50PM  American City Business Journals]
▶ Ad Giant Omnicom Agrees to Buy Small Consulting Firm   [07:40AM  The Wall Street Journal]
▶ Pearle Vision, Energy BBDO tell heartwarming story about Olivia   [Jul-30-18 03:02PM  American City Business Journals]
▶ Omnicom Group Inc. Declares Dividend   [Jul-19-18 04:15PM  PR Newswire]
▶ Omnicom's on Sale   [Jul-18-18 07:00AM  Morningstar]
▶ Omnicom Underwhelms With Soft Organic Growth   [Jul-17-18 09:40PM  Motley Fool]
▶ [$$] Omnicom Boosts Data Effort With Digital Platform   [08:11PM  The Wall Street Journal]
▶ Omnicom: 2Q Earnings Snapshot   [06:53AM  Associated Press]
▶ Omnicom Group Inc to Host Earnings Call   [06:30AM  ACCESSWIRE]
▶ TBWA Elevates Deb Haimes to Managing Director of Engage   [Jul-12-18 02:04PM  PR Newswire]
▶ Omnicom Boosts Data Effort With New Marketing Platform   [07:00AM  The Wall Street Journal]
▶ Omnicom Group Announces Divestiture of Sellbytel Group   [Jul-10-18 04:15PM  PR Newswire]
▶ Ad agency GSD&M lands Pizza Hut account reportedly worth hundreds of millions   [Jun-27-18 08:40AM  American City Business Journals]
▶ Options traders spot unusual activity with Omnicom   [Jun-25-18 01:21PM  CNBC Videos]
▶ Turning Challenge Into Opportunity With Omnicom   [Jun-21-18 05:20PM  Forbes]
▶ TBWA\India Awarded Cannes Health Grand Prix For Good   [Jun-19-18 10:00AM  PR Newswire]
▶ Apple wins big at AICP Awards   [Jun-15-18 09:00AM  PR Newswire]
▶ Omnicom Advertises Good Value   [Jun-05-18 06:30AM  Forbes]
▶ The Incredibles go to bat for incredible edible (and versatile) egg   [Jun-01-18 02:41PM  American City Business Journals]
▶ Best Dividend Paying Stock in June   [09:02AM  Simply Wall St.]
▶ FleishmanHillard Grows Washington, D.C. Leadership Team   [May-31-18 10:00AM  PR Newswire]
▶ HSBC Global Media Account Moves From WPP to Omnicom   [01:00AM  The Wall Street Journal]
▶ Omnicom Group Inc. Declares Dividend   [04:15PM  PR Newswire]
▶ HSBC Global Media Account Moves From WPP to Omnicom   [01:32PM  The Wall Street Journal]
▶ These Dividend Stocks Are Best In Class   [09:02AM  Simply Wall St.]
▶ Company News For Apr 18, 2018   [10:19AM  Zacks]
▶ Omnicom Starts 2018 on a High Note   [Apr-17-18 02:00PM  Motley Fool]
▶ Omnicom Grows, Despite Continuing Client Pressures   [11:53AM  The Wall Street Journal]
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