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The Interpublic Group of Companies, Inc. (IPG) Stock Analysis

Score A

Value · Grade B · Unknown

Communication Services · Advertising Agencies

$24.57

Fair Value

$31.50

+28.2%

Conviction

10/10

Quality

B

Classification

Value

Investment Thesis

Good opportunity: Solid company with good risk/reward at 7.3:1.

For New Investors

Quantitative score: high

For Current Holders

Quantitative score: neutral

Buy if

  • Price drops 15-20% (improves asymmetry)
  • Bull scenario catalysts materialize
  • Market-wide correction creates opportunity

Sell if

  • Bear scenario triggers occur
  • Quality metrics deteriorate (ROIC declining)
  • Better alternatives emerge

Valuation

Fair Value estimate: $31.50 (+28.2%). Significantly undervalued. (Methods diverge significantly. Conservative estimate shown.)

PEG-Based EPS

$5.45

FCF DCF Model

$31.94

EV/EBITDA

$31.94

Blended Fair Value

$31.50

Confidence

Low

Methods

PEG-Based EPS (conservative), FCF 2-Stage DCF, EV/EBITDA

Quality Analysis

B

75/120 points

Investable

ROE (3Y Avg)

23.9%

ROIC-WACC Spread

1.3%

D/E Ratio

1.1x

Current Ratio

1.1x

Interest Coverage

5x

FCF Positive Years

3/3

Quality Flags

  • ROIC spread: 1.3pp (got 3/25 pts)
  • Leverage: D/E 1.1x (7/15 pts)

Market Sentiment

Wall Street Consensus

$36.00

+46.5% Upside

0

Range: $26.00$56.00

Analyst consensus data not available.

Trend & Technical

Unknown

Insufficient data to calculate SMA 200.

Technical Score0/100

Technical analysis unavailable

Risk & Reward

Asymmetry Ratio

7.28:1

Expected Return

+19.3%

Bull Upside

+38.8%

Bear Downside

-5.3%

Excellent asymmetry: 7.28:1 ratio. Upside significantly outweighs downside.

Verdict: Very Favorable

Scenario Analysis

Bear

Base

Bull

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Technical Analysis

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Frequently Asked Questions

What is the fair value of IPG?

Based on our multi-method conviction analysis, the estimated fair value of The Interpublic Group of Companies, Inc. (IPG) is $31.50. This is calculated by blending PEG-Based EPS (conservative), FCF 2-Stage DCF, EV/EBITDA and applying a quality premium of 0% based on the company's fundamentals. The confidence level of this estimate is low.

Is IPG a buy, sell, or hold?

IPG currently has a BUY rating with a conviction score of 10/10. Good opportunity: Solid company with good risk/reward at 7.3:1. Quantitative score: high.

Is IPG a high-quality stock?

The Interpublic Group of Companies, Inc. has a quality grade of B (75/120 points), rated as Investable. Key metrics include ROE of 23.9%, ROIC-WACC spread of 1.3%, and D/E ratio of 1.1x.

What type of stock is IPG?

IPG is classified as a "value" in our framework. High FCF Yield: 10.2%, Mature growth: 3.0%, Dividend paying: 2.7%, Market-like beta: 1.01, Consistent FCF: 3/3 years positive

What do Wall Street analysts say about IPG?

Multiple Wall Street analysts have a consensus price target of $36.00 for IPG, representing +46.5% upside. Targets range from $26.00 to $56.00. The consensus recommendation is "—". Analyst consensus data not available.

What are the risks of investing in IPG?

The risk/reward asymmetry ratio for IPG is 7.28:1, rated as Very Favorable. Excellent asymmetry: 7.28:1 ratio. Upside significantly outweighs downside. The expected return is +19.3%, with bull case upside of +38.8% and bear case downside of -5.3%.

What is the current trend for IPG?

IPG is in a unknown trend. Insufficient data to calculate SMA 200. The technical score is —/100.

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Last updated: May 19, 2026 · Framework version 3.7

This analysis is for informational purposes only and should not be considered financial advice. Always do your own research before making investment decisions.