Market Pulse50Neutral

Stagwell Inc.Opportunity Rank #130(STGW) Intrinsic Value & DCF Analysis (2026)

Current Price

$6.27

Last updated: Mar 13, 2026

Price vs Intrinsic Value

$6.27
Price
$20.31
Intrinsic Value
Undervalued by 224%MOS: $16.25

Fundamental Score

64/100
Neutral

Weighted across 6 signals

Narrative Score

66/100
Improving

No change vs previous

The intrinsic value of Stagwell Inc. (STGW) is estimated at $20.31 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $6.27, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 5.83% long-term growth rate and a 10.00% discount rate (calculated: 8.34%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of Stagwell Inc. (STGW) is estimated at $20.31 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $6.27, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 5.83% long-term growth rate and a 10.00% discount rate (calculated: 8.34%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$20.31
223.92% upside
20% margin of safety: $16.25
Years: 10Growth Rate: 5.83%
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Capital Efficiency

Average Quarterly ROIC
1.12%
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

64/100
NeutralWeighted across 6 signals
DCF Discount
223.9% discount to price
100
FCF Yield
26.4% trailing FCF yield
100
ROIC vs WACC
ROIC 1.1% vs WACC 11.0% (0.1x)
5
Net Debt / FCF
3.6x net debt to FCF
0
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
22.3% 5Y FCF CAGR
100
Strengths: DCF Discount, FCF Yield. Concerns: ROIC vs WACC, Net Debt / FCF.

Narrative Details

66/100
Improving
Weighted across 4 recent drivers
Trend: Improving upConfidence: 78%Updated: 1d ago
Sources: 27 (24 News · 3 Analyst)
Drivers(last 30 days)
21 news sentiment+1.0
Upgrade headlines+0.5
2 regulatory scrutiny+0.1
3 analyst reiterations0.0

Investment Coach

Updating... 1d ago
BUYConfidence: 61%
Thesis
Stagwell Inc. is significantly undervalued with an estimated fair value 230% above its current price, supported by constructive fundamentals and an improving narrative. Despite trailing returns relative to its cost of capital, strong free cash flow yield and buybacks indicate potential for value realization.
Key Risk
The primary risk is the persistent negative spread between ROIC and WACC, which may hinder sustainable value creation.
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: 5.83%5 Year CAGR: 13.27%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015201420132012201120102009200820072006
$417$335$197$123$383$223$152$77$39$109$36$186$160$79$97$28$50$66$72$24$62

How Intrinziq Estimates Fair Value

Intrinziq estimates Stagwell 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.

Stagwell Inc.Communication Services

Stagwell Inc. provides digital transformation, performance media and data, consumer insights and strategy, and creativity and communications services. The company operates through three segments: Integrated Agencies Network, Media Network, and Communications Network. It designs and builds digital platforms and experiences that support the delivery of content, commerce, service, and sales; creates websites, mobile applications, back-end systems, content and data management systems, and other digital environments; designs and implements technology and data strategies; and develops software and related technology products, including cookie-less data platforms for audience targeting and activation, software tools for e-commerce applications, and text messaging applications for consumer engagement. The company also provides media buying and planning services; and strategic insights and guidance services that offers business content, product, communications, and media strategies. In addition, it offers strategy development, advertising creation, live events, cross platform engagement, and social media content services; and leadership, social media, executive positioning and visibility, strategic communication, public relation, and public affair services. Further, the company provides influencer marketing, brand insights, communications technology, and augmented reality services for in-house marketers, as well as tech-driven solutions. Stagwell Inc. is headquartered in New York, New York.