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Omnicom Group (STU:OCN) Cyclically Adjusted Price-to-FCF : 11.04 (As of Jun. 10, 2024)


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What is Omnicom Group Cyclically Adjusted Price-to-FCF?

As of today (2024-06-10), Omnicom Group's current share price is €83.92. Omnicom Group's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was €7.60. Omnicom Group's Cyclically Adjusted Price-to-FCF for today is 11.04.

The historical rank and industry rank for Omnicom Group's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

STU:OCN' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 7.2   Med: 12.25   Max: 16.64
Current: 11.12

During the past years, Omnicom Group's highest Cyclically Adjusted Price-to-FCF was 16.64. The lowest was 7.20. And the median was 12.25.

STU:OCN's Cyclically Adjusted Price-to-FCF is ranked better than
60.66% of 366 companies
in the Media - Diversified industry
Industry Median: 16.02 vs STU:OCN: 11.12

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Omnicom Group's adjusted free cash flow per share data for the three months ended in Mar. 2024 was €-2.950. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is €7.60 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Omnicom Group Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Omnicom Group's Cyclically Adjusted Price-to-FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Omnicom Group Cyclically Adjusted Price-to-FCF Chart

Omnicom Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.95 8.80 9.54 10.20 10.64

Omnicom Group Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted Price-to-FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.82 12.18 9.37 10.64 11.81

Competitive Comparison of Omnicom Group's Cyclically Adjusted Price-to-FCF

For the Advertising Agencies subindustry, Omnicom Group's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Omnicom Group's Cyclically Adjusted Price-to-FCF Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Omnicom Group's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Omnicom Group's Cyclically Adjusted Price-to-FCF falls into.



Omnicom Group Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Omnicom Group's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=83.92/7.6
=11.04

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Omnicom Group's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, Omnicom Group's adjusted Free Cash Flow per Share data for the three months ended in Mar. 2024 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=-2.95/131.7762*131.7762
=-2.950

Current CPI (Mar. 2024) = 131.7762.

Omnicom Group Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 0.552 100.560 0.723
201409 0.534 100.428 0.701
201412 4.453 99.070 5.923
201503 -1.032 99.621 -1.365
201506 0.426 100.684 0.558
201509 1.655 100.392 2.172
201512 6.418 99.792 8.475
201603 -1.845 100.470 -2.420
201606 0.148 101.688 0.192
201609 2.579 101.861 3.336
201612 6.181 101.863 7.996
201703 -0.899 102.862 -1.152
201706 -0.652 103.349 -0.831
201709 0.485 104.136 0.614
201712 7.753 104.011 9.823
201803 -2.302 105.290 -2.881
201806 -0.021 106.317 -0.026
201809 1.168 106.507 1.445
201812 7.353 105.998 9.141
201903 -1.669 107.251 -2.051
201906 -0.476 108.070 -0.580
201909 0.963 108.329 1.171
201912 8.473 108.420 10.298
202003 -4.218 108.902 -5.104
202006 0.486 108.767 0.589
202009 0.725 109.815 0.870
202012 8.975 109.897 10.762
202103 -1.834 111.754 -2.163
202106 0.591 114.631 0.679
202109 2.031 115.734 2.313
202112 4.498 117.630 5.039
202203 -2.457 121.301 -2.669
202206 -0.982 125.017 -1.035
202209 2.282 125.227 2.401
202212 5.357 125.222 5.637
202303 -2.490 127.348 -2.577
202306 -1.279 128.729 -1.309
202309 1.787 129.860 1.813
202312 8.209 129.419 8.358
202403 -2.950 131.776 -2.950

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Omnicom Group  (STU:OCN) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Omnicom Group Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Omnicom Group's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Omnicom Group (STU:OCN) Business Description

Traded in Other Exchanges
Address
280 Park Avenue, New York, NY, USA, 10017
Omnicom is the world's second-largest ad holding company, based on annual revenue. The firm's services, which include traditional and digital advertising and public relations, are provided worldwide, with over 80% of its revenue coming from more developed regions such as North America and Europe.