Is Omnicom Group Inc. (OMC) Undervalued?
Based on the current stock price of $80.03 and a P/E ratio of 11.80,Omnicom Group Inc. has a PEG ratio of 2.32.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 2.32, OMC appears to be potentially overvalued relative to its growth rate of 5.08%.
Based on a PEG ratio of 1.36 (adjusted for dividends).
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How we analyzed OMC
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 11.80and dividing it by the annual growth rate of 5.08%.
PEG = 11.80 (P/E) ÷ 5.08 (Growth) = 2.32
Frequently Asked Questions about OMC
What is the current PEG Ratio for Omnicom Group Inc. (OMC)?+
The current PEG Ratio for Omnicom Group Inc. is 2.32. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is OMC stock undervalued right now?+
Based on the PEG ratio of 2.32, Omnicom Group Inc. appears to be potentially overvalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for OMC?+
The PEGY ratio for Omnicom Group Inc. is 1.36. This metric accounts for dividend yield (3.62%), providing a more complete valuation picture.