Dentsu Group (TYO: 4324)

Last close As at 16/07/2024


−36.00 (−0.88%)

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.

Dentsu’s May release of its global ad spend forecasts saw it lift current year projections from 4.6% to 5.0%, with 4.2% (unchanged) for FY25 and 4.2% (was 4.3%) for FY26. The main uplift is in digital ad spend, up from +6.5% to +7.4% for FY24, putting it just shy of 60% of the total ad spend pie. Across the forecast period through to 2026, ad spend is forecast to increase at a CAGR of 4.5%, led by digital at +6.7%.

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Equity Analyst

Fiona Orford-Williams

Fiona Orford-Williams

Director, TMT

Milo Bussell

Analyst, Consumer and TMT

Key Management

  • Hiroshi Igarashi

    President & CEO

  • Kate Stewart

    IR director

  • Yushin Soga


Balance Sheet

Forecast net debt (¥m)


Forecast gearing ratio (%)


Share Price Performance

Price Performance
% 1M 3M 12M
Actual (1.7) (4.6) (13.2)
Relative (7.0) (11.4) (33.1)
52 week high/low ¥4771.0/¥3586.0


Dentsu’s Q1 results indicated a slow start to the year, with organic net revenue down by 3.7%. However, prospects are improving, buoyed by new business wins and weighted to H2, which leave full year expectations (and our forecasts) unchanged. The One dentsu initiative, bringing together skill sets in consulting, technology, media and creative, is supporting improved pitch win rates, and giving greater coherence and consistency to the group product and service offering. We expect this to be a central element of the new management medium-term strategy, set to be unveiled during H2. The rating remains at a substantial discount to global peers, which we anticipate will narrow as evidence of renewed growth builds.

Y/E Dec Revenue (¥m) EBITDA (¥m) PBT (¥m) EPS (fd) (¥) P/E (x) P/CF (x)
2022A 1243883.0 217500.0 187589.0 485.0 8.4 0.1
2023A 1289301.0 175742.0 151315.0 337.0 12.0 0.1
2024E 1356700.0 203377.0 159804.0 380.0 10.7 0.1
2025E 1393000.0 218527.0 178741.0 403.0 10.1 0.0