Marsh & McLennan Companies, Inc. (MMC) Fair Value & PE Analysis
Insurance - Brokers · NYSE
Current Price
$182.70
PE Ratio (TTM)
22.3x
Intrinsic Value
$213.47
+14.4% margin of safety
What Is Marsh & McLennan Companies, Inc.'s Fair Value?
As of 2026-01-13, applying a 22.0x earnings multiple to Marsh & McLennan Companies, Inc.'s (MMC) earnings per share of $8.26 yields a fair value estimate of $213.47 per share, versus a market price of $182.7.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $174.45 to $258.11. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How the PE model works · Recalculate in PE mode · MMC intrinsic value (DCF view)
Is Marsh & McLennan Companies, Inc. (MMC) Overvalued?
At $182.7, MMC trades about 14.4% below its PE-based fair value estimate, a modest discount to its earnings power, though not enough to call it cheap outright.
COMPETITIVE MOAT
↑Global Brokerage Network Scale
MMC's extensive global network of brokers and consultants provides unparalleled market access and client reach. This scale creates significant barriers to entry for smaller competitors.
↑Data Analytics and Insights
The company leverages vast amounts of data to offer sophisticated risk management and advisory services. This proprietary data advantage enhances client value and retention.
↑Brand Reputation and Trust
MMC's long-standing reputation for expertise and reliability fosters deep client trust. This intangible asset is difficult for rivals to replicate, ensuring client loyalty.
INVESTMENT RISKS
↓Economic Downturn Impact
Recessions can lead to reduced corporate spending on risk management and consulting services. This could negatively affect MMC's revenue and growth prospects.
↓Talent Acquisition and Retention
Attracting and retaining top talent in specialized advisory fields is crucial. Intense competition for skilled professionals poses a risk to service quality.
↓Merger and Acquisition Integration
Successful integration of acquired businesses is vital for realizing synergies. Failure to effectively merge operations can lead to inefficiencies and value destruction.
Base case
MMC base case PE valuation
Intrinsic Value
$213.47
Margin of safety
+14.4%
Expected annual return
+3.2%
Base case assumptions: 9.0% annual earnings growth, 22x target PE, 10% discount rate, 5 year projection. Data as of 2026-01-13.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the MMC PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Marsh & McLennan Companies, Inc. respond.
Open PE Calculator for MMCCompany Overview
Marsh & McLennan Companies (MMC) operates as a leading global professional services organization, delivering expert guidance and innovative solutions to clients worldwide across the critical domains of risk, strategic planning, and human capital. Its operations are bifurcated into two primary divisions: Risk and Insurance Services, and Consulting. The Risk and Insurance Services arm provides an extensive range of risk management capabilities, encompassing strategic risk advice, risk transfer mechanisms, and solutions for risk control and mitigation. This segment is also proficient in insurance and reinsurance brokerage, offers sophisticated catastrophe and financial modeling, delivers associated advisory services, and manages insurance programs. Its diverse clientele includes businesses, governmental bodies, insurance companies, associations, specialized professional service organizations, and private individuals. Conversely, the Consulting division specializes in advisory services and products related to health, wealth, and career development. It also extends its expertise to specialized management, economic analysis, and brand strategy consulting. Founded in 1871, Marsh & McLennan Companies, Inc. maintains its corporate headquarters in New York, New York.
Financial Metrics — MMC PE Stock Valuation Data
PE Ratio (TTM)
22.3x
PEG Ratio
n/m
Earnings Yield
4.52%
ROE (TTM)
26.2%
Revenue/Share (TTM)
$57.98
Dividend Yield
2.02%
Debt/Equity
1.45x
Frequently Asked Questions
What is the PE ratio of MMC?
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.
Is MMC overvalued based on PE ratio?
MMC's PE of 22.3x combined with a PEG ratio of -10.37 provides a growth-adjusted perspective. MMC has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Insurance - Brokers, a DCF analysis may be more appropriate.
How do I value MMC stock using PE ratio?
To value Marsh & McLennan Companies, Inc. using PE: (1) Compare the current PE (22.3x) against the Insurance - Brokers median to assess relative pricing, (2) check the PEG ratio (-10.37) 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.
What is the PEG ratio of MMC?
MMC's PEG ratio is -10.37, calculated by dividing the PE ratio (22.3x) by the expected earnings growth rate. Because MMC has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for MMC stock valuation?
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 26.2%, 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.
Learn More
- See MMC DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Financial Services valuationsP/E and DCF value MMC with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-01-13. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.