Insurance - Brokers · NYSE
Current Price
$182.70
Intrinsic Value
Use the calculator below to estimate
Run a PE ratio stock valuation on Marsh & McLennan Companies, Inc. with auto-filled earnings data, adjustable target PE, and instant fair value estimate.
Marsh & 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.
Earnings Yield
4.75%
ROE (TTM)
25.9%
Based on trailing twelve-month data, MMC has earnings per share of N/A and trades at a PE ratio of N/A. These are key inputs for stock valuation using the PE ratio method.
The trailing twelve-month PE ratio of MMC reflects how much investors pay per dollar of Marsh & McLennan Companies, Inc.'s earnings. This metric is most useful when compared to Insurance - Brokers peers and the company's own historical range.
Whether MMC is overvalued depends on comparing its PE ratio to Insurance - Brokers peers, historical averages, and growth expectations. A PE above the sector average may indicate overvaluation, but high-growth companies often command premium multiples. Consider pairing PE analysis with a DCF model for a more complete picture.
To value Marsh & McLennan Companies, Inc. using PE: (1) Compare the current PE against the Insurance - Brokers median to assess relative pricing, (2) check the PEG ratio to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
The PEG ratio divides the PE ratio by the expected earnings growth rate, providing a growth-adjusted valuation metric. A PEG below 1.0 may indicate undervaluation relative to growth, while above 2.0 may suggest overvaluation. PEG is most reliable for companies with stable, predictable earnings growth.
PE ratio gives a quick relative read — how MMC is priced versus Insurance - Brokers peers. DCF provides an absolute value based on projected free cash flows. For MMC, with a strong ROE of 25.9%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
