Marsh & McLennan Companies, Inc.

NYSE:MMC Stock Report

Market Cap: US$108.4b

Marsh & McLennan Companies Valuation

Is MMC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of MMC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MMC ($221.96) is trading below our estimate of fair value ($262.57)

Significantly Below Fair Value: MMC is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MMC?

Key metric: As MMC is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for MMC. This is calculated by dividing MMC's market cap by their current earnings.
What is MMC's PE Ratio?
PE Ratio27.1x
EarningsUS$4.03b
Market CapUS$108.41b

Price to Earnings Ratio vs Peers

How does MMC's PE Ratio compare to its peers?

The above table shows the PE ratio for MMC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average51.6x
AON Aon
33.7x14.3%US$82.0b
AJG Arthur J. Gallagher
55.4x16.4%US$64.2b
BRO Brown & Brown
30.2x3.2%US$31.3b
RYAN Ryan Specialty Holdings
87.2x44.5%US$18.4b
MMC Marsh & McLennan Companies
27.1x7.2%US$108.4b

Price-To-Earnings vs Peers: MMC is good value based on its Price-To-Earnings Ratio (27.1x) compared to the peer average (51.6x).

Price to Earnings Ratio vs Industry

How does MMC's PE Ratio compare vs other companies in the US Insurance Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
UTGN UTG
2xn/aUS$85.49m
AORE.F American Overseas Group
2.1xn/aUS$16.68m
CUII China United Insurance Service
0.0003xn/aUS$3.13k
No more companies available in this PE range
MMC 27.1xIndustry Avg. 13.5xNo. of Companies15PE01020304050+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MMC is expensive based on its Price-To-Earnings Ratio (27.1x) compared to the US Insurance industry average (13.5x).

Price to Earnings Ratio vs Fair Ratio

What is MMC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MMC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio27.1x
Fair PE Ratio16.9x

Price-To-Earnings vs Fair Ratio: MMC is expensive based on its Price-To-Earnings Ratio (27.1x) compared to the estimated Fair Price-To-Earnings Ratio (16.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst MMC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$221.96
US$230.82
+4.0%
7.7%US$255.00US$179.00n/a19
Nov ’25US$219.10
US$230.29
+5.1%
7.6%US$255.00US$179.00n/a19
Oct ’25US$222.79
US$223.53
+0.3%
7.0%US$248.00US$179.00n/a20
Sep ’25US$227.51
US$222.23
-2.3%
7.5%US$240.59US$167.00n/a20
Aug ’25US$224.61
US$221.93
-1.2%
7.8%US$244.00US$167.00n/a20
Jul ’25US$210.25
US$212.57
+1.1%
7.3%US$238.00US$167.00n/a21
Jun ’25US$207.58
US$211.71
+2.0%
7.1%US$238.00US$167.00n/a21
May ’25US$199.77
US$211.13
+5.7%
6.7%US$238.00US$167.00n/a22
Apr ’25US$203.89
US$203.28
-0.3%
7.3%US$232.00US$167.00n/a22
Mar ’25US$202.00
US$202.82
+0.4%
7.9%US$232.00US$157.00n/a22
Feb ’25US$193.74
US$202.81
+4.7%
8.1%US$232.00US$157.00n/a21
Jan ’25US$189.47
US$203.50
+7.4%
7.2%US$226.00US$157.00n/a18
Dec ’24US$197.40
US$203.83
+3.3%
7.1%US$226.00US$157.00n/a18
Nov ’24US$190.05
US$203.28
+7.0%
7.3%US$226.00US$157.00US$219.1018
Oct ’24US$190.30
US$198.88
+4.5%
7.8%US$220.00US$145.00US$222.7917
Sep ’24US$195.77
US$198.88
+1.6%
7.8%US$220.00US$145.00US$227.5117
Aug ’24US$189.70
US$198.53
+4.7%
7.9%US$220.00US$145.00US$224.6117
Jul ’24US$188.08
US$189.24
+0.6%
7.5%US$205.00US$145.00US$210.2517
Jun ’24US$174.42
US$188.19
+7.9%
7.5%US$205.00US$145.00US$207.5816
May ’24US$181.51
US$185.82
+2.4%
8.0%US$205.00US$145.00US$199.7717
Apr ’24US$166.55
US$181.17
+8.8%
7.6%US$200.00US$137.00US$203.8918
Mar ’24US$162.01
US$181.11
+11.8%
7.6%US$200.00US$137.00US$202.0018
Feb ’24US$175.46
US$181.11
+3.2%
7.6%US$200.00US$137.00US$193.7418
Jan ’24US$165.48
US$174.00
+5.1%
9.8%US$197.00US$130.00US$189.4717
Dec ’23US$173.03
US$172.88
-0.09%
10.3%US$197.00US$130.00US$197.4016
Nov ’23US$162.24
US$172.12
+6.1%
10.3%US$197.00US$130.00US$190.0517

Analyst Forecast: Target price is less than 20% higher than the current share price.

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