Cheap and healthy — worth a proper look.

The math shows a margin of safety, and nothing is obviously deteriorating.

Current price
$81.16
Market cap ≈ $17B
Intrinsic value
$112
range $80 – $161
Margin of safety
+38%
below fair value
2 FY16 2 FY17 2 FY18 2 FY19 2 FY20 1 FY21 1 FY22 1 FY23 2 FY24 3 FY25

What the math is really telling you. Watch whether cash flow is compounding — that, more than any single year, is what a value read hangs on.

  • Good:
    Undervalued
    Fair value ~$112 vs $81 — a margin of safety of 38%.
  • Good:
    Price is in line with its record
    Priced for ~1%/yr, roughly what it has delivered (48.7%/yr) — from a depressed FY22 base.
  • Good:
    Revenue still growing
    Up 10.1% last year — demand isn't the problem.
  • Good:
    Cash flow compounding
    Free cash flow up ~48.7%/yr — the engine is growing.
  • Caution:
    Manageable net debt
    Net debt of $3B — about 1.9× annual free cash flow. Normal for a mature company. It also has $2B of operating-lease commitments — about 1.5× annual free cash flow — which this figure does not count as debt.

Where this number comes from →

How this was built. Every figure is computed from Omnicom Group Inc.'s SEC filings — no estimates, no AI. Two-stage DCF: 9% discount rate, 5% free-cash-flow growth for 10 years, 2.5% terminal. Free cash flow is operating cash flow less capital spending. Fair value is based on typical free cash flow over the last five years ($1.3B), not the latest year ($2.8B), which sat 108% above the company's own norm. Net cash is cash and marketable securities less borrowings, commercial paper and finance leases; operating leases are disclosed but never counted as debt. Fundamentals are from the FY25 annual report and change only when a new one is filed. Price of $81.16 taken 2026-09-08 (Google Finance, manual entry, 2026-09-11) — it is not live and does not move during the day.

TickerMath is an educational tool, not investment advice — it computes one model from SEC filings and can be wrong. How we compute this →