Is Interpublic Group of Cos., Inc. overvalued or undervalued?

As of 22 April 2025, the valuation grade for Interpublic Group of Cos., Inc. has moved from expensive to very expensive, indicating a significant shift in market perception. The company is currently overvalued, with a P/E ratio of 11, which is higher than the industry average, and an EV to EBITDA ratio of 5.93. Additionally, the Price to Book Value stands at 2.38, suggesting that investors are paying a premium for the company's assets relative to its book value.
In comparison to its peers, Interpublic Group's P/E ratio of 11.09 is notably similar to its valuation grade, reinforcing the notion of overvaluation. Notable peers in the advertising industry include Omnicom Group, which has a P/E of around 10.5, and WPP plc, with a P/E of approximately 12. The company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -12.81% compared to the S&P 500's 2.44%, further supporting the conclusion that the stock is currently overvalued.