Stagwell (STGW) Valuation Check as NewVoices.ai Expands Its AI-Driven Marketing Technology Push

Stagwell (STGW) just pushed deeper into AI with NewVoices.ai, a lifelike sales and support platform that promises personalized, always on customer interactions and a fresh revenue stream at the center of its marketing tech strategy.

See our latest analysis for Stagwell.

Despite the buzz around NewVoices.ai and other recent leadership moves in its communications and research units, Stagwell’s 30 day share price return of 18.53% comes off a tougher backdrop. The 1 year total shareholder return is still down 18.94%, suggesting early momentum is building but investors remain cautious.

If this kind of AI driven pivot has your attention, it is worth exploring other potential beneficiaries in high growth tech and AI stocks to see how Stagwell’s opportunity compares in a broader tech context.

With revenue and earnings growing, a double digit 30 day rally, and shares still trading at a steep discount to analyst targets, is Stagwell quietly undervalued here, or is the market already pricing in its AI fueled growth?

Most Popular Narrative Narrative: 23.8% Undervalued

Compared with Stagwell’s last close at $5.95, the most followed narrative points to a higher fair value, framing today’s price as a potential discount.

Expansion and integration of proprietary digital and martech platforms (such as Code and Ink, and the "machine") are creating higher margin, recurring revenue streams and improving operational efficiencies, which should drive net margin expansion.

Read the complete narrative.

Want to see the numbers behind this margin upgrade story? The narrative leans on rising digital revenue, expanding profitability, and a re rated earnings multiple. Curious which assumptions really move that valuation?

Result: Fair Value of $7.81 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, Stagwell’s reliance on a handful of mega tech clients and ongoing acquisition integration challenges could easily derail the margin and earnings upgrade story.

Find out about the key risks to this Stagwell narrative.

Another Angle on Valuation

There is a catch. On earnings, Stagwell trades at about 76 times, far richer than the US media sector on 15.9 times and peers on 30.6 times, and well above a 27.7 times fair ratio the market could drift toward. Is this optimism, or valuation risk building?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Stagwell Narrative

If you see the story differently, or want to stress test the assumptions yourself, you can build a complete view in under three minutes: Do it your way.

A great starting point for your Stagwell research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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