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

As of 22 July 2025, the valuation grade for Interpublic Group of Cos., Inc. has moved from very expensive to very attractive, indicating a significant improvement in its valuation outlook. The company appears undervalued, supported by a P/E ratio of 11, an EV to EBITDA of 5.93, and a dividend yield of 5.96%. In comparison, Omnicom Group, Inc. has a higher P/E ratio of 14.28, while QuinStreet, Inc. shows a much higher EV to EBITDA of 17.53, highlighting Interpublic's relative attractiveness in the media and entertainment sector.
Despite the positive valuation metrics, Interpublic has underperformed against the S&P 500 over multiple periods, with a year-to-date return of -7.14% compared to the S&P's 12.22% and a 1-year return of -16.28% versus the S&P's 17.14%. This underperformance reinforces the notion that the stock may be undervalued, presenting a potential opportunity for investors.