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Should You Think About Buying The Interpublic Group of Companies, Inc. (NYSE:IPG) Now?

Simply Wall St

The Interpublic Group of Companies, Inc. (NYSE:IPG), which is in the media business, and is based in United States, saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Today I will analyse the most recent data on Interpublic Group of Companies’s outlook and valuation to see if the opportunity still exists.

View our latest analysis for Interpublic Group of Companies

What is Interpublic Group of Companies worth?

Good news, investors! Interpublic Group of Companies is still a bargain right now. According to my valuation, the intrinsic value for the stock is $37.17, but it is currently trading at US$22.52 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Interpublic Group of Companies’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

Can we expect growth from Interpublic Group of Companies?

NYSE:IPG Past and Future Earnings, December 1st 2019
NYSE:IPG Past and Future Earnings, December 1st 2019

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by a double-digit 12% over the next couple of years, the outlook is positive for Interpublic Group of Companies. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

Are you a shareholder? Since IPG is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on IPG for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy IPG. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Interpublic Group of Companies. You can find everything you need to know about Interpublic Group of Companies in the latest infographic research report. If you are no longer interested in Interpublic Group of Companies, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

If you spot an error that warrants correction, please contact the editor at This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.