Omnicom Price to Earning

OMC Stock  USD 91.83  4.20  4.79%   
Omnicom Group fundamentals help investors to digest information that contributes to Omnicom's financial success or failures. It also enables traders to predict the movement of Omnicom Stock. The fundamental analysis module provides a way to measure Omnicom's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Omnicom stock.
This module does not cover all equities due to inconsistencies in global equity categorizations. Continue to Equity Screeners to view more equity screening tools.
  
The current year Price to Earnings Ratio is expected to grow to 12.95, whereas Earnings Before Interest Taxes and Depreciation Amortization EBITDA are forecasted to decline to about 2 B.

Omnicom Price to Earning Analysis

Omnicom's Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
 2022 2023 (projected)
Consolidated Income1.65 B1.56 B
Direct Expenses10.35 B10.19 B
P/E 
 = 
Market Value Per Share 
Earnings Per Share 
More About Price to Earning | All Equity Analysis

Current Omnicom Price to Earning

    
  12.73 X  
Most of Omnicom's fundamental indicators, such as Price to Earning, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Omnicom Group is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Omnicom Price to Earning Historical Pattern

Today, most investors in Omnicom Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Omnicom's growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's price to earning growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Omnicom price to earning as a starting point in their analysis.
   Omnicom Price to Earning   
       Timeline  
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Compare to competition

Omnicom Accumulated Retained Earnings Deficit

Accumulated Retained Earnings Deficit

7.01 Billion

Omnicom Accumulated Retained Earnings Deficit are projected to decrease significantly based on the last few years of reporting. The past year's Accumulated Retained Earnings Deficit were at 7.03 Billion
Based on the latest financial disclosure, the price to earning indicator of Omnicom Group is roughly 12.73 times. This is 85.1% lower than that of the Media sector and significantly higher than that of the Communication Services industry. The price to earning for all United States stocks is 55.68% higher than that of the company.

Omnicom Price to Earning Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Omnicom's direct or indirect competition against its Price to Earning to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Omnicom could also be used in its relative valuation, which is a method of valuing Omnicom by comparing valuation metrics of similar companies.
Omnicom is currently under evaluation in price to earning category among related companies.

Omnicom Current Valuation Drivers

We derive many important indicators used in calculating different scores of Omnicom from analyzing Omnicom's financial statements. These drivers represent accounts that assess Omnicom's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Omnicom's important valuation drivers and their relationship over time.
201820192020202120222023 (projected)
Net Income Per Employee18.84 K19.13 K14.71 K19.64 K17.67 K15.77 K
Revenue Per Employee217.19 K213.62 K204.92 K199.29 K179.37 K179.61 K
Average Assets21.64 B22.88 B23.2 B25.17 B28.95 B27.61 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA2.4 B2.21 B1.68 B2.28 B2.05 B1.97 B
Earnings Before Interest Taxes and Depreciation Amortization USD2.27 B2.32 B2.35 B2.32 B2.67 B2.63 B
Earnings before Tax1.75 B1.78 B1.82 B1.84 B2.12 B2.07 B
Average Equity2.29 B2.38 B2.47 B2.54 B2.28 B2.44 B
Enterprise Value23.17 B19.91 B19.18 B21.6 B24.83 B24.35 B
Free Cash Flow1.79 B1.87 B1.53 B1.75 B2.02 B1.96 B
Invested Capital1.7 B1.25 B819.1 M3.14 B3.61 B2.9 B
Invested Capital Average2.48 B2.32 B1.97 B3.97 B4.57 B3.78 B
Market Capitalization20.08 B16.79 B16.41 B17.64 B20.29 B20.34 B
Tangible Asset Value13.76 B15.23 B14.85 B17 B19.56 B18.1 B
Working Capital(1.29 B)(992.9 M)(1.54 B)(1.4 B)(1.26 B)(1.36 B)

Omnicom ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Omnicom's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Omnicom's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

Omnicom Fundamentals

About Omnicom Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Omnicom Group's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Omnicom using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Omnicom Group based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Last ReportedProjected for 2023
Price to Earnings Ratio 11.97  12.95 
Earnings Before Interest Taxes and Depreciation Amortization EBITDA2.1 BB
Earnings before Tax2.1 B2.1 B

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Please check Omnicom Piotroski F Score and Omnicom Altman Z Score analysis. You can also try Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.

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Is Omnicom's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Omnicom. If investors know Omnicom will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Omnicom listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.073
Market Capitalization
17.5 B
Quarterly Revenue Growth
0.002
Return On Assets
0.0538
Return On Equity
0.3643
The market value of Omnicom Group is measured differently than its book value, which is the value of Omnicom that is recorded on the company's balance sheet. Investors also form their own opinion of Omnicom's value that differs from its market value or its book value, called intrinsic value, which is Omnicom's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Omnicom's market value can be influenced by many factors that don't directly affect Omnicom's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Omnicom's value and its price as these two are different measures arrived at by different means. Investors typically determine Omnicom value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Omnicom's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.