Stock fact sheet · data as of
Stagwell Inc. (STGW): fair value, margin of safety and Wheel Score
Ticker symbol STGW · Communication Services · Advertising Agencies · United States · Class A common stock · Blend
STGW is Stagwell Inc.'s Class A common stock. The classes own the same business, share the same earnings report and trade within a few cents of each other; what differs is mainly the vote each share carries - the company's annual report sets out the voting rights.
Is STGW undervalued?
STGW closed at 11.00 on 5 Nov 2026, more than 30% above the GLS average fair value of 6.37. Only 2 of the 8 models that produced a value sit above the price. By our models the shares are priced well beyond what the filed earnings, cash flow and book value support; the "below fair value" Wheel Trade Filter keeps names like this under 70.
There is a wide gap between GLS Growth (0.1081) and 10 Cap (32.42). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
Ranked against every other company we cover, neither cheapness nor growth clearly wins for STGW, so the nightly engine files it under Blend (value score 20, growth score 24, out of 100).
Nine valuation models for STGW
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 12.43 | +13% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 1.54 | -86% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 1.61 | -85% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 0.6651 | -94% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 0.1081 | -99% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 32.42 | +195% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 1.77 | -84% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 0.4103 | -96% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -9.21 | -184% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 10.50 | -5% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Stagwell Inc. scores 8 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the "Piotroski 6 or more" Wheel Trade Filter with room to spare. A GLS Moat score of 4.2/10 is a weak reading: the accounts do not show returns and margins that competitors have been unable to wear down, so the Moat part of the Wheel Score contributes little.
Returns on capital are thin or negative - ROIC 1.2%, ROE 3.8%, ROA 0.7% - with debt at 2.12 times equity and a free-cash-flow yield of 13.2%. Debt of 2.12 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.
Stagwell Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Digital Transformation 100% (quarter Q3 FY2026).
Institutional ownership scores 5/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 8 / 9 | ROIC | 1.2% |
|---|---|---|---|
| GLS Moat | 4.2 / 10 | ROE | 3.8% |
| Debt / equity | 2.12 | ROA | 0.7% |
| Free-cash-flow yield | 13.2% | Payout ratio | 0% |
| Institutions | 5 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 33: Weak
With a Wheel Score of 33 Stagwell Inc. sits in the Weak band. It fails filter 3, below fair value - trades 73% above our fair value; and filter 5, can repay its debt - 4.6 years to repay its debt (over 3); Value (weak) is its weakest part.
Implied volatility is 67% on the near-the-money contracts 20-60 days out - above the 60% top of the sweet spot. It still passes the 25-80% filter, but the Wheel Score rewards it less because volatility this high usually comes with a reason. Chain open interest is 11,430 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 4.0M shares a day on a market cap of $2.7B, with a beta of 1.23 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score rates that fair.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Fails | trades 73% above our fair value |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Fails | 4.6 years to repay its debt (over 3) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Weak | 73% above fair value | |
| Premium | Strong | implied volatility 67% | |
| Moat | Fair | moat 4.2/10 | |
| Health | Strong | Piotroski 8/9 | |
| Red Flags | Fair | Red Flags score 75/100 | |
| Option trading | Weak | 121 contracts a day, 11,430 open interest | |
| Stability | Fair | beta 1.23, $2.7B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for STGW in the nightly calendar.
Analysts upgraded STGW 1 time in the last 30 days with no downgrades; the latest action was an upgrade by Goldman Sachs on 5 Oct 2026.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Advertising Agencies
The 12 companies below are the closest to Stagwell Inc. by market cap within the Advertising Agencies industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| LFTO Liftoff Mobile, Inc. Common Stock | 15.69 | 14.37 | -9% | 20Weak | $2.7B |
| PTRN Pattern Group Inc. Series A Common Stock | 17.68 | 21.44 | +18% | 37Weak | $2.8B |
| MGNI Magnite, Inc. | 22.79 | 23.85 | +4% | 31Weak | $3.3B |
| ZD Ziff Davis, Inc. | 56.75 | 280.86 | +80% | 78Good | $1.9B |
| WPP WPP plc | 28.40 | 99.21 | +71% | 47Weak | $6.1B |
| TTD The Trade Desk, Inc. | 13.23 | 35.20 | +62% | 51Fair | $6.3B |
| QNST QuinStreet, Inc. | 19.26 | 46.58 | +59% | 81Good | $1.1B |
| CRTO Criteo S.A. | 15.64 | 98.30 | +84% | 44Weak | $766M |
| ADV Advantage Solutions Inc. | 39.67 | 30.53 | -30% | 11Weak | $527M |
| NEXN Nexxen International Ltd. | 9.12 | 11.13 | +18% | 42Weak | $519M |
| PERI Perion Network Ltd. | 11.45 | 17.33 | +34% | 29Weak | $450M |
| BOC Boston Omaha Corporation | 14.02 | - | - | 30Weak | $422M |
⚖ Compare STGW with 7 of them All Communication Services stocks →
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Start free See the Sunday ScanQuestions about STGW
What kind of share is STGW?
STGW is Stagwell Inc.'s Class A common stock. The classes own the same business, share the same earnings report and trade within a few cents of each other; what differs is mainly the vote each share carries - the company's annual report sets out the voting rights.
Is STGW undervalued right now?
No: at 11.00 the stock trades 73% above the GLS average fair value of 6.37 (data as of 5 Nov 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of STGW and what does it mean?
STGW scores 33 out of 100 (Weak) - it fails Wheel Trade Filters 3, 5. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for STGW?
6.37 per share as of 5 Nov 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Stagwell Inc. report earnings next?
No upcoming earnings date is recorded for STGW in our calendar as of 5 Nov 2026; the Calendars page is refreshed every morning.
Does STGW have listed options, and how liquid are they?
Yes. The nightly snapshot found 34 listed contracts with 11,430 open interest across all expiries and implied volatility of 67% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.