Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Omnicom Group Inc. (OMC)

Company Dividend Discount ModelIndustry: Advertising AgenciesSector: Communication Services

Valuation Snapshot

Stable Growth$78.32 - $130.46$101.31
Multi-Stage$183.30 - $201.82$192.38
Blended Fair Value$146.84
Current Price$81.53
Upside80.11%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-0.41%1.68%2.812.862.953.012.862.872.792.622.572.52
YoY Growth---1.78%-3.17%-1.89%5.26%-0.28%2.88%6.46%1.94%1.75%6.13%
Dividend Yield--3.39%2.96%3.13%3.54%3.85%5.22%3.78%3.60%2.98%3.03%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,334.60
(-) Cash Dividends Paid (M)550.60
(=) Cash Retained (M)784.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)266.92166.83100.10
Cash Retained (M)784.00784.00784.00
(-) Cash Required (M)-266.92-166.83-100.10
(=) Excess Retained (M)517.08617.18683.91
(/) Shares Outstanding (M)196.90196.90196.90
(=) Excess Retained per Share2.633.133.47
LTM Dividend per Share2.802.802.80
(+) Excess Retained per Share2.633.133.47
(=) Adjusted Dividend5.425.936.27
WACC / Discount Rate5.82%5.82%5.82%
Growth Rate-1.04%-0.04%0.96%
Fair Value$78.32$101.31$130.46
Upside / Downside-3.94%24.26%60.01%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,334.601,334.131,333.661,333.191,332.721,332.251,372.22
Payout Ratio41.26%51.00%60.75%70.50%80.25%90.00%92.50%
Projected Dividends (M)550.60680.47810.24939.931,069.521,199.031,269.30

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate5.82%5.82%5.82%
Growth Rate-1.04%-0.04%0.96%
Year 1 PV (M)636.63643.06649.49
Year 2 PV (M)709.21723.61738.16
Year 3 PV (M)769.72793.29817.33
Year 4 PV (M)819.41853.04887.69
Year 5 PV (M)859.45903.76949.87
PV of Terminal Value (M)32,297.8433,962.9435,696.01
Equity Value (M)36,092.2637,879.7039,738.56
Shares Outstanding (M)196.90196.90196.90
Fair Value$183.30$192.38$201.82
Upside / Downside124.83%135.96%147.54%

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