Insurance - Brokers · NYSE
Current Price
$182.70
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Marsh & McLennan Companies, Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Open DCF Calculator for MMCMarsh & McLennan Companies, Inc., a professional services company, provides advice and solutions to clients in the areas of risk, strategy, and people worldwide. It operates in two segments, Risk and Insurance Services, and Consulting. The Risk and Insurance Services segment offers risk management services, such as risk advice, risk transfer, and risk control and mitigation solutions, as well as insurance and reinsurance broking, catastrophe and financial modeling, and related advisory services; and insurance program management services. This segment serves businesses, public entities, insurance companies, associations, professional services organizations, and private clients. The Consulting segment provides health, wealth, and career consulting services and products; and specialized management, as well as economic and brand consulting services. Marsh & McLennan Companies, Inc. was founded in 1871 and is headquartered in New York, New York.
ROIC (TTM)
7.7%
ROE (TTM)
25.9%
FCF Yield
5.99%
Based on trailing twelve-month data, MMC shows a free cash flow per share of N/A and a ROIC of 7.7%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 5.99% are important context metrics when evaluating MMC's stock valuation relative to peers.
The intrinsic value of MMC depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether MMC is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $182.70. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Marsh & McLennan Companies, Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Insurance - Brokers industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting MMC's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Marsh & McLennan Companies, Inc., this means projecting how much free cash flow the Insurance - Brokers will produce over the next 5-10 years, then discounting those amounts to today's dollars. MMC's ROIC of 7.7% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For MMC, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
