Dentsu Group (TYO: 4324)

Currency in JPY

Last close As at 26/05/2023


−35.00 (−0.76%)

Market capitalisation


Dentsu Group is a holding company, operating in over 145 countries. It provides a wide range of client-centric integrated communications, media and digital services.

CT&T benefits from structural tailwinds as companies look to invest to optimise to meet the increasingly demanding expectations of their own customers. Dentsu’s latest FY23 global ad spend forecast is +3.8%, with 4.8% for FY24 and 4.5% for FY25 pencilled in. Digital spend is forecast at 57% of FY23 global ad spend. The Japanese ad market still lags the digital transition curve, with a digital share of 49%, and with TV remaining prominent at 26%.

Dentsu Group_resized



Equity Analyst

Fiona Orford-Williams

Fiona Orford-Williams

Director, TMT

Key Management

  • Hiroshi Igarashi

    President & CEO

  • Kate Stewart

    IR director

Balance Sheet

Forecast net cash (¥m)


Forecast gearing ratio (%)


Share Price Performance

Price Performance
% 1M 3M 12M
Actual (3.7) 5.3 9.6
Relative (8.4) (2.5) (4.2)
52 week high/low ¥4960.0/¥4045.0


Dentsu Group had demanding Q123 on Q122 comparisons and, with the acquisition contributions, we are not too concerned about the read-across for the rest of FY23, with performance skewed to H2. Progress in Customer Transformation and Technology (CT&T), up 6.7% in Q123 and now 35% of group net revenue, should buoy medium-term growth. Tag, the acquisition announced in March and expected to complete in early Q323 (subject to regulatory clearances), is another step towards the 50% CT&T target. We anticipate a return to margin expansion in FY24 as one-off factors retreat, the transition progresses and cost benefits from the ‘One dentsu’ initiative start to flow. The valuation remains at a marked discount to global peers.

Y/E Dec Revenue (¥m) EBITDA (¥m) PBT (¥m) EPS (fd) (¥) P/E (x) P/CF (x)
2021A 1085592.0 196917.0 146020.0 390.0 11.7 0.0
2022A 1243883.0 216831.0 186478.0 482.0 9.5 0.1
2023E 1269983.0 230210.0 177570.0 454.0 10.1 0.1
2024E 1311500.0 246158.0 200450.0 521.0 8.8 0.1



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