Marsh Mclennan Companies Stock Current Valuation

MMC Stock  USD 205.61  2.24  1.10%   
Valuation analysis of Marsh McLennan Companies helps investors to measure Marsh McLennan's intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns. As of March 28, 2024, Enterprise Value Multiple is expected to decline to 10.03. Fundamental drivers impacting Marsh McLennan's valuation include:
Price Book
8.2018
Enterprise Value
112.1 B
Enterprise Value Ebitda
17.7404
Price Sales
4.4393
Forward PE
23.6407
Overvalued
Today
205.61
Please note that Marsh McLennan's price fluctuation is very steady at this time. Calculation of the real value of Marsh McLennan Companies is based on 3 months time horizon. Increasing Marsh McLennan's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Marsh McLennan Companies is useful when determining the fair value of the Marsh stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Marsh McLennan. Since Marsh McLennan is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Marsh Stock. However, Marsh McLennan's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  205.61 Real  186.18 Target  205.82 Hype  205.67 Naive  203.47
The real value of Marsh Stock, also known as its intrinsic value, is the underlying worth of Marsh McLennan Companies Company, which is reflected in its stock price. It is based on Marsh McLennan's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Marsh McLennan's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Marsh McLennan's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
185.33
Downside
186.18
Real Value
226.17
Upside
Estimating the potential upside or downside of Marsh McLennan Companies helps investors to forecast how Marsh stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Marsh McLennan more accurately as focusing exclusively on Marsh McLennan's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
2.672.802.88
Details
Hype
Prediction
LowEstimatedHigh
204.82205.67206.52
Details
Potential
Annual Dividend
LowForecastedHigh
1.861.871.89
Details
22 Analysts
Consensus
LowTarget PriceHigh
187.30205.82228.46
Details

Marsh Current Valuation Analysis

Marsh McLennan's Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
 2021 2022 2023 2024 (projected)
Gross Profit8.4B8.6B18.4B19.3B
Total Revenue19.8B20.7B22.7B23.9B

Enterprise Value

 = 

Market Cap + Debt

-

Cash

More About Current Valuation | All Equity Analysis

Current Marsh McLennan Current Valuation

    
  112.07 B  
Most of Marsh McLennan's fundamental indicators, such as Current Valuation, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Marsh McLennan Companies is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Marsh Current Valuation Driver Correlations

Understanding the fundamental principles of building solid financial models for Marsh McLennan is extremely important. It helps to project a fair market value of Marsh Stock properly, considering its historical fundamentals such as Current Valuation. Since Marsh McLennan's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Marsh McLennan's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Marsh McLennan's interrelated accounts and indicators.
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Click cells to compare fundamentals
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Competition

In accordance with the recently published financial statements, Marsh McLennan Companies has a Current Valuation of 112.07 B. This is 241.47% higher than that of the Insurance sector and significantly higher than that of the Financials industry. The current valuation for all United States stocks is significantly lower than that of the firm.

Marsh Current Valuation Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Marsh McLennan's direct or indirect competition against its Current Valuation to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Marsh McLennan could also be used in its relative valuation, which is a method of valuing Marsh McLennan by comparing valuation metrics of similar companies.
Marsh McLennan is currently under evaluation in current valuation category among related companies.

Marsh McLennan ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Marsh McLennan's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Marsh McLennan's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

Marsh Fundamentals

About Marsh McLennan Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Marsh McLennan Companies's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Marsh McLennan using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Marsh McLennan Companies based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Marsh McLennan Companies, Inc., a professional services company, provides advice and solutions to clients in the areas of risk, strategy, and people worldwide. Marsh McLennan Companies, Inc. was founded in 1871 and is headquartered in New York, New York. Marsh Mclennan operates under Insurance Brokers classification in the United States and is traded on New York Stock Exchange. It employs 86000 people.

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When determining whether Marsh McLennan Companies offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Marsh McLennan's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Marsh Mclennan Companies Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Marsh Mclennan Companies Stock:
Check out Marsh McLennan Piotroski F Score and Marsh McLennan Altman Z Score analysis.
You can also try the Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.

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Is Marsh McLennan's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Marsh McLennan. If investors know Marsh will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Marsh McLennan listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.643
Dividend Share
2.72
Earnings Share
7.52
Revenue Per Share
46.024
Quarterly Revenue Growth
0.106
The market value of Marsh McLennan Companies is measured differently than its book value, which is the value of Marsh that is recorded on the company's balance sheet. Investors also form their own opinion of Marsh McLennan's value that differs from its market value or its book value, called intrinsic value, which is Marsh McLennan's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Marsh McLennan's market value can be influenced by many factors that don't directly affect Marsh McLennan's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Marsh McLennan's value and its price as these two are different measures arrived at by different means. Investors typically determine if Marsh McLennan is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Marsh McLennan's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.