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The Interpublic Group of (The Interpublic Group of) Intrinsic Value: Projected FCF : $37.37 (As of Apr. 27, 2024)


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What is The Interpublic Group of Intrinsic Value: Projected FCF?

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2024-04-27), The Interpublic Group of's Intrinsic Value: Projected FCF is $37.37. The stock price of The Interpublic Group of is $31.47. Therefore, The Interpublic Group of's Price-to-Intrinsic-Value-Projected-FCF of today is 0.8.

The historical rank and industry rank for The Interpublic Group of's Intrinsic Value: Projected FCF or its related term are showing as below:

IPG' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.64   Med: 1.07   Max: 2.09
Current: 0.84

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of The Interpublic Group of was 2.09. The lowest was 0.64. And the median was 1.07.

IPG's Price-to-Projected-FCF is ranked better than
52.9% of 603 companies
in the Media - Diversified industry
Industry Median: 0.88 vs IPG: 0.84

The Interpublic Group of Intrinsic Value: Projected FCF Historical Data

The historical data trend for The Interpublic Group of's Intrinsic Value: Projected 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.

The Interpublic Group of Intrinsic Value: Projected FCF Chart

The Interpublic Group of Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 32.92 32.16 38.46 37.21 42.15

The Interpublic Group of Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Intrinsic Value: Projected 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 35.40 34.62 35.27 42.15 37.37

Competitive Comparison of The Interpublic Group of's Intrinsic Value: Projected FCF

For the Advertising Agencies subindustry, The Interpublic Group of's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-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.


The Interpublic Group of's Price-to-Projected-FCF Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, The Interpublic Group of's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where The Interpublic Group of's Price-to-Projected-FCF falls into.



The Interpublic Group of Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get The Interpublic Group of's Free Cash Flow(6 year avg) = $948.10.

The Interpublic Group of's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Mar24)*0.8)/Shares Outstanding (Diluted Average)
=(11.773635598597*948.096+3824.1*0.8)/380.600
=37.37

* 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.


The Interpublic Group of  (NYSE:IPG) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

The Interpublic Group of's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=31.47/37.366833464233
=0.84

* 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.


The Interpublic Group of Intrinsic Value: Projected FCF Related Terms

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The Interpublic Group of (The Interpublic Group of) Business Description

Traded in Other Exchanges
Address
909 Third Avenue, New York, NY, USA, 10022
Interpublic Group is among the world's largest advertising holding companies based on annual revenue. It provides traditional advertising services along with digital and other services such as public relations through various acquisitions. IPG has made these services available in over 100 countries. The company generates more than 80% of its revenue from developed regions such as the United States and Europe.
Executives
Jorge L. Benitez director 5201 BLUE LAGOON DRIVE, SUITE 250, MIAMI FL 33126
Dawn E Hudson director 2530 ZANKER ROAD, SAN JOSE CA 95131
Jocelyn Carter-miller director 3698 NW 15TH STREET, LAUDERHILL FL 33311
Christopher F Carroll officer: SVP, Controller & CAO 3 TIMES SQUARE, 12TH FL., NEW YORK NY 10036
Andrew Bonzani officer: SVP, General Counsel & Sec. 1114 AVENUE OF THE AMERICAS, 19TH FLOOR, NEW YORK NY 10036
Ellen Tobi Johnson officer: SVP of Finance & Treasurer C/O IPG, 1114 AVE OF THE AMERICAS, NEW YORK NY 10036
Mary Guilfoile director 227 WASHINGTON STREET STE.200, CONSHOHOCKEN PA 19428
Michael Isor Roth director THE INTERPUBLIC GROUP OF COMPANIES, INC., 1114 AVENUE OF THE AMERICAS, 19TH FLOOR, NEW YORK NY 10036
Philippe Krakowsky officer: SVP, Dir of Corporate Comms
H John Greeniaus director
Linda S Sanford director 4 IRVING PLACE, NEW YORK NY 10003
Julie Connors officer: SVP,Audit & Chief Risk Officer C/O IPG, 1114 AVE OF THE AMERICAS, 19TH FLOOR, NEW YORK NY 10036
David M Thomas director 930 CLAPBOARD RIDGE ROAD, GREENWICH CT 06830
Frank Mergenthaler officer: Exec. VP & CFO 1114 AVENUE OF THE AMERICAS, 19TH FLOOR, NEW YORK NY 10036
Patrick Q Moore director 625 ELMWOOD DRIVE NE, ATLANTA GA 30306