Market Pulse46Neutral

Omnicom Group Inc.Opportunity Rank #77(OMC) Intrinsic Value & DCF Analysis (2026)

Current Price

$81.93

Last updated: Jul 13, 2026

Price vs Intrinsic Value

$81.93
Price
$203.33
Intrinsic Value
Undervalued by 148%MOS: $162.66

Fundamental Score

65/100
Neutral

Weighted across 6 signals

Narrative Score

55/100
Improving

-1 vs previous

Trend Score

64/100
Constructive

As of 2026-07-10

The intrinsic value of Omnicom Group Inc. (OMC) is estimated at $203.33 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $81.93, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 1.62% long-term growth rate and a 9.00% discount rate (calculated: 6.50%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of Omnicom Group Inc. (OMC) is estimated at $203.33 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $81.93, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 1.62% long-term growth rate and a 9.00% discount rate (calculated: 6.50%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$203.33
▲ 148.18% upside
20% margin of safety: $162.66
Years: 10Growth Rate: 1.62%
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Capital Efficiency

Average Quarterly ROIC
2.23%
Cost of Capital (estimated)11%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.

Fundamental Details

65/100
NeutralWeighted across 6 signals
DCF Discount
148.2% discount to price
100
FCF Yield
14.4% trailing FCF yield
100
ROIC vs WACC
ROIC 2.2% vs WACC 11.0% (0.2x)
10
Net Debt / FCF
1.7x net debt to FCF
38
Buybacks
Share count flat
50
FCF CAGR (5Y)
13.3% 5Y FCF CAGR
91
Strengths: DCF Discount, FCF Yield. Concerns: ROIC vs WACC, Net Debt / FCF.

Narrative Details

55/100
Improving
-1 vs previous · +1 new driversVs 6-Month Baseline:Below Avg (32nd pct)Weighted across 5 recent drivers
Trend: StableConfidence: 76%Updated: 2h ago
Sources: 31 (28 News · 3 Analyst)
Drivers(last 30 days)
26 news sentiment+0.3
Upgrade headlines+0.2
Analyst upgrades+0.0
Regulatory scrutiny+0.0
2 analyst reiterations0.0

Trend Details

64/100
ConstructiveAs of 2026-07-10309 daily bars used
Distance from 52-Week High-4.5%
Price vs 21 EMA+6.5%
Price vs 50 EMA+7.7%
Price vs 21 EMA83 · +6.5%
Price vs 50 EMA82 · +7.7%
21 EMA vs 50 EMA59 · +1.1%
3M RS vs SPY43 · -1.6%
6M RS vs SPY39 · -3.9%
Distance from 52W High91 · -4.5%

Investment Coach

Updating... 31d ago
BUYConfidence: 54%
Thesis
Omnicom Group Inc. is significantly undervalued with an estimated fair value 164.7% above its current price, supported by healthy free cash flow yield and constructive fundamentals. Despite returns trailing the cost of capital, the company's strong free cash flow growth and valuation discount present a compelling buy opportunity.
Key Risk
The key risk is the persistent negative spread between ROIC and WACC, which may indicate ongoing value destruction.
Signals To Watch
  • Monitor whether valuation discount remains above 10%.
  • Track ROIC vs WACC spread for sustained improvement.
  • Follow narrative trend for meaningful shifts in the score direction.
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 1.62%5 Year CAGR: 5.13%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015201420132012201120102009200820072006
$3,353$3,088$1,874$1,500$1,005$2,611$1,800$1,958$1,918$2,180$2,097$2,375$1,690$2,021$1,678$1,501$1,642$1,862$1,606$1,822$1,919

How Intrinziq Estimates Fair Value

Intrinziq estimates Omnicom Group Inc.'s intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

Omnicom Group Inc.Communication Services

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.