The Interpublic Group of Companies, Inc. (IPG) Financial Ratios
30 years of historical data (1995–2024) · Communication Services · Advertising Agencies
EV/EBITDA
↓
7.52
↓-24% vs avg
5yr avg: 9.89
30Y Low2.7·High69.8
P/FCF
↑
9.77
↓-45% vs avg
5yr avg: 17.83
30Y Low2.8·High160.4
P/B Ratio
↓
2.37
↓-28% vs avg
5yr avg: 3.30
30Y Low0.8·High10.1
ROE
↑
17.3%
↑-22% vs avg
5yr avg: 22.3%
30Y Low-26%·High29%
Debt/EBITDA
↓
2.91
↓-14% vs avg
5yr avg: 3.40
30Y Low0.9·High19.3
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
IPG Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
The Interpublic Group of Companies, Inc. trades at 13.4x earnings, 19% below its 5-year average of 16.6x, sitting at the 20th percentile of its historical range. Compared to the Communication Services sector median P/E of 15.3x, the stock trades at a discount of 12%. On a free-cash-flow basis, the stock trades at 9.8x P/FCF, 45% below the 5-year average of 17.8x.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $8.9B | $10.6B | $12.6B | $13.2B | $14.9B | $9.2B | $9.0B | $8.0B | $8.0B | $9.6B | $9.7B |
| Enterprise Value | $11.0B | $12.7B | $14.9B | $15.1B | $16.4B | $11.9B | $12.9B | $11.1B | $8.6B | $10.1B | $9.9B |
| P/E Ratio → | 13.43 | 15.31 | 11.45 | 14.05 | 15.67 | 26.43 | 13.75 | 12.97 | 14.40 | 15.82 | 21.36 |
| P/S Ratio | 0.83 | 0.99 | 1.16 | 1.20 | 1.46 | 1.02 | 0.88 | 0.83 | 1.02 | 1.22 | 1.27 |
| P/B Ratio | 2.37 | 2.71 | 3.11 | 3.51 | 4.14 | 3.05 | 3.02 | 3.09 | 3.22 | 4.14 | 4.29 |
| P/FCF | 9.77 | 11.59 | 33.55 | 30.56 | 7.93 | 5.51 | 6.79 | 20.68 | 11.03 | 30.54 | 18.87 |
| P/OCF | 8.46 | 10.03 | 22.71 | 21.62 | 7.19 | 5.01 | 5.91 | 14.20 | 9.08 | 18.60 | 14.36 |
P/E links to full P/E history page with 30-year chart
IPG EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
The Interpublic Group of Companies, Inc.'s enterprise value stands at 7.5x EBITDA, 24% below its 5-year average of 9.9x. The Communication Services sector median is 9.6x, placing the stock at a 22% discount on an enterprise-value basis.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.18 | 1.37 | 1.39 | 1.61 | 1.31 | 1.26 | 1.14 | 1.09 | 1.29 | 1.31 |
| EV / EBITDA | 7.52 | 8.65 | 8.52 | 9.15 | 9.56 | 13.56 | 9.43 | 9.15 | 7.84 | 9.25 | 9.63 |
| EV / EBIT | 9.14 | 9.89 | 9.11 | 10.54 | 11.81 | 21.53 | 11.94 | 11.54 | 9.22 | 11.07 | 11.72 |
| EV / FCF | — | 13.85 | 39.64 | 35.17 | 8.75 | 7.09 | 9.67 | 28.57 | 11.84 | 32.44 | 19.37 |
IPG Profitability
Margins and return-on-capital ratios measuring operating efficiency
The Interpublic Group of Companies, Inc. earns an operating margin of 11.3%, above the Communication Services sector average of 1.6%. Operating margins have compressed from 12.6% to 11.3% over the past 3 years, signaling potential cost pressures or competitive headwinds. ROE of 17.3% indicates solid capital efficiency. ROIC of 14.7% represents solid returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 17.0% | 17.0% | 16.7% | 16.9% | 18.1% | 14.9% | 14.6% | 14.2% | 15.4% | 15.7% | 36.2% |
| Operating Margin | 11.3% | 11.3% | 13.6% | 12.6% | 14.0% | 6.5% | 10.6% | 10.4% | 11.9% | 11.9% | 11.5% |
| Net Profit Margin | 6.4% | 6.4% | 10.1% | 8.6% | 9.3% | 3.9% | 6.4% | 6.4% | 7.3% | 7.8% | 6.0% |
Return on Capital
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 17.3% | 17.3% | 28.2% | 25.5% | 28.7% | 11.7% | 23.5% | 24.3% | 24.1% | 26.7% | 19.5% |
| ROA | 3.7% | 3.7% | 5.8% | 4.8% | 5.0% | 2.0% | 3.9% | 4.4% | 4.6% | 4.9% | 3.6% |
| ROIC | 14.7% | 14.7% | 18.4% | 19.1% | 19.9% | 7.0% | 13.1% | 17.3% | 23.6% | 25.9% | 26.3% |
| ROCE | 13.7% | 13.7% | 16.7% | 15.4% | 16.4% | 7.0% | 13.7% | 16.1% | 19.2% | 19.1% | 17.0% |
IPG Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
The Interpublic Group of Companies, Inc. carries a Debt/EBITDA ratio of 2.9x, which is moderately leveraged (19% below the sector average of 3.6x). Net debt stands at $2.1B ($4.3B total debt minus $2.2B cash). Interest coverage of 5.6x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.09 | 1.09 | 1.15 | 1.21 | 1.33 | 1.70 | 1.68 | 1.44 | 0.55 | 0.73 | 0.78 |
| Debt / EBITDA | 2.91 | 2.91 | 2.67 | 2.74 | 2.79 | 5.89 | 3.68 | 3.08 | 1.25 | 1.54 | 1.71 |
| Net Debt / Equity | — | 0.53 | 0.56 | 0.53 | 0.42 | 0.88 | 1.28 | 1.18 | 0.23 | 0.26 | 0.12 |
| Net Debt / EBITDA | 1.41 | 1.41 | 1.31 | 1.20 | 0.89 | 3.03 | 2.81 | 2.53 | 0.53 | 0.54 | 0.25 |
| Debt / FCF | — | 2.26 | 6.09 | 4.61 | 0.81 | 1.59 | 2.88 | 7.89 | 0.80 | 1.90 | 0.51 |
| Interest Coverage | 5.56 | 5.56 | 7.24 | 8.56 | 8.16 | 2.88 | 5.41 | 7.81 | 10.26 | 10.11 | 9.88 |
IPG Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.09x means The Interpublic Group of Companies, Inc. can comfortably meet its short-term obligations, though there is limited excess liquidity. The current ratio has improved from 1.03x to 1.09x over the past 3 years.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.09 | 1.09 | 1.06 | 1.03 | 1.03 | 0.98 | 0.93 | 1.01 | 0.97 | 0.97 | 1.01 |
| Quick Ratio | 1.09 | 1.09 | 1.06 | 1.03 | 1.03 | 0.98 | 0.93 | 1.01 | 0.97 | 0.94 | 1.01 |
| Cash Ratio | 0.22 | 0.22 | 0.23 | 0.25 | 0.30 | 0.26 | 0.13 | 0.08 | 0.10 | 0.14 | 0.20 |
| Asset Turnover | — | 0.58 | 0.57 | 0.58 | 0.51 | 0.50 | 0.58 | 0.62 | 0.62 | 0.63 | 0.60 |
| Inventory Turnover | — | — | — | 1539.51 | 1022.90 | 9636.75 | 382.86 | 1462.49 | 1374.39 | 38.49 | — |
| Days Sales Outstanding | — | 264.17 | 268.09 | 245.13 | 268.20 | 260.51 | 255.09 | 264.03 | 293.23 | 274.81 | 285.50 |
IPG Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
The Interpublic Group of Companies, Inc. returns 7.9% to shareholders annually — split between a 5.4% dividend yield and 2.6% buyback yield. The payout ratio of 72.0% is elevated — while still covered by earnings, there is limited headroom for dividend increases. The earnings yield of 7.4% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 5.4% | 4.7% | 3.8% | 3.5% | 2.9% | 4.3% | 4.0% | 4.0% | 3.5% | 2.5% | 2.0% |
| Payout Ratio | 72.0% | 72.0% | 43.6% | 48.8% | 44.9% | 113.4% | 55.4% | 52.0% | 48.4% | 39.2% | 43.0% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 7.4% | 6.5% | 8.7% | 7.1% | 6.4% | 3.8% | 7.3% | 7.7% | 6.9% | 6.3% | 4.7% |
| FCF Yield | 10.2% | 8.6% | 3.0% | 3.3% | 12.6% | 18.2% | 14.7% | 4.8% | 9.1% | 3.3% | 5.3% |
| Buyback Yield | 2.6% | 2.2% | 2.8% | 2.4% | 0.0% | 0.0% | 0.0% | 1.5% | 3.7% | 3.2% | 2.9% |
| Total Shareholder Yield | 7.9% | 6.9% | 6.6% | 5.9% | 2.9% | 4.3% | 4.0% | 5.5% | 7.2% | 5.7% | 5.0% |
| Shares Outstanding | — | $378M | $386M | $395M | $398M | $393M | $391M | $389M | $397M | $408M | $416M |
Peer Comparison
Compare IPG with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 IPGYou | $9B | 13.4 | 7.5 | 9.8 | 17.0% | 11.3% | 17.3% | 14.7% | 2.9 |
 OMC | $22B | -264.3 | 9.8 | 7.9 | 17.3% | 15.0% | -0.6% | 14.5% | 4.5 |
 WPP | $4B | 5.6 | 3.7 | 2.5 | 16.6% | 9.0% | 14.3% | 12.5% | 3.5 |
 FORR | $128M | -1.1 | 8.2 | 7.1 | 53.3% | 0.5% | -67.0% | 0.8% | 4.3 |
 HURN | $1B | 15.5 | 8.6 | 8.0 | 29.9% | 11.7% | 19.3% | 15.0% | 2.4 |
 TRUE | $226M | -7.5 | — | — | 85.0% | -21.2% | -22.3% | -97.7% | — |
 CODA | $113M | 27.0 | 14.3 | 18.7 | 66.5% | 17.1% | 7.4% | 11.2% | 0.1 |
 META | $1.5T | 24.6 | 14.8 | 31.7 | 82.0% | 41.4% | 30.2% | 27.6% | 0.8 |
 GOOGL | $4.5T | 34.0 | 29.8 | 60.8 | 59.7% | 32.1% | 35.7% | 25.1% | 0.4 |
 TTD | $9B | 20.3 | 12.0 | 10.9 | 78.6% | 20.3% | 16.3% | 21.3% | 0.6 |
 AMZN | $2.6T | 34.1 | 18.5 | 341.6 | 50.3% | 11.2% | 22.3% | 14.7% | 1.0 |
| Communication Services Median | — | 15.3 | 9.6 | 11.4 | 48.5% | 1.6% | 2.0% | 2.6% | 3.6 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Includes 30+ ratios · 30 years · Updated daily
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IPG — Frequently Asked Questions
Quick answers to the most common questions about buying IPG stock.
What is The Interpublic Group of Companies, Inc.'s P/E ratio?
The Interpublic Group of Companies, Inc.'s current P/E ratio is 13.4x. The historical average is 23.7x. This places it at the 20th percentile of its historical range.
What is The Interpublic Group of Companies, Inc.'s EV/EBITDA?
The Interpublic Group of Companies, Inc.'s current EV/EBITDA is 7.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.4x.
What is The Interpublic Group of Companies, Inc.'s ROE?
The Interpublic Group of Companies, Inc.'s return on equity (ROE) is 17.3%. The historical average is 12.7%.
Is IPG stock overvalued?
Based on historical data, The Interpublic Group of Companies, Inc. is trading at a P/E of 13.4x. This is at the 20th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is The Interpublic Group of Companies, Inc.'s dividend yield?
The Interpublic Group of Companies, Inc.'s current dividend yield is 5.35% with a payout ratio of 72.0%.
What are The Interpublic Group of Companies, Inc.'s profit margins?
The Interpublic Group of Companies, Inc. has 17.0% gross margin and 11.3% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does The Interpublic Group of Companies, Inc. have?
The Interpublic Group of Companies, Inc.'s Debt/EBITDA ratio is 2.9x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.