Marsh McLennan Valuation

MMC Stock  USD 205.61  2.24  1.10%   
At this time, the firm appears to be overvalued. Marsh McLennan Companies secures a last-minute Real Value of $186.18 per share. The latest price of the firm is $205.61. Our model forecasts the value of Marsh McLennan Companies from analyzing the firm fundamentals such as Current Valuation of 112.07 B, profit margin of 0.17 %, and Return On Equity of 0.33 as well as examining its technical indicators and probability of bankruptcy. In general, most investors recommend purchasing undervalued stocks and exiting overvalued stocks since, at some point, asset prices and their ongoing real values will merge together.
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  204.23
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.
185.32
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
204.81205.67206.53
Details
Potential
Annual Dividend
LowForecastedHigh
1.861.871.89
Details
22 Analysts
Consensus
LowTarget PriceHigh
187.30205.82228.46
Details

Marsh McLennan Investments

(1.36 Billion)

Marsh McLennan Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Marsh McLennan's current stock value. Our valuation model uses many indicators to compare Marsh McLennan value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Marsh McLennan competition to find correlations between indicators driving Marsh McLennan's intrinsic value. More Info.
Marsh McLennan Companies is considered to be number one stock in price to sales category among related companies. It is considered to be number one stock in net asset category among related companies making up about  10,819,273,309  of Net Asset per Price To Sales. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Marsh McLennan by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Marsh McLennan's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Marsh McLennan's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Marsh McLennan's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Marsh McLennan and how it compares across the competition.

About Marsh McLennan Valuation

The stock valuation mechanism determines the current worth of Marsh McLennan Companies on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Marsh McLennan Companies. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Marsh McLennan Companies based exclusively on its fundamental and basic technical indicators. By analyzing Marsh McLennan's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Marsh McLennan's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Marsh McLennan. We calculate exposure to Marsh McLennan's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Marsh McLennan's related companies.
Last ReportedProjected for 2024
Gross Profit18.4 B19.3 B
Pretax Profit Margin 0.22  0.18 
Operating Profit Margin 0.23  0.19 
Net Profit Margin 0.17  0.09 
Gross Profit Margin 0.42  0.26 

Marsh McLennan Quarterly Retained Earnings

22.76 Billion

8 Steps to conduct Marsh McLennan's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Marsh McLennan's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Marsh McLennan's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Marsh McLennan's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Marsh McLennan's revenue streams: Identify Marsh McLennan's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Marsh McLennan's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Marsh McLennan's growth potential: Evaluate Marsh McLennan's management, business model, and growth potential.
  • Determine Marsh McLennan's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Marsh McLennan's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
Marsh McLennan's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Marsh McLennan's value is low or high relative to the company's performance and growth projections. Determining the market value of Marsh McLennan can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Marsh McLennan represents a small ownership stake in the entity. As a stockholder of Marsh, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Marsh McLennan Dividends Analysis For Valuation

At present, Marsh McLennan's Dividend Payout Ratio is projected to slightly decrease based on the last few years of reporting. The current year's Dividend Paid And Capex Coverage Ratio is expected to grow to 7.65, whereas Dividends Paid is projected to grow to (1.2 B). . At present, Marsh McLennan's Price Earnings To Growth Ratio is projected to drop slightly based on the last few years of reporting.
Last ReportedProjected for 2024
Dividends Paid-1.3 B-1.2 B
Dividend Yield 0.01  0.03 
Dividend Payout Ratio 0.35  0.51 
Dividend Paid And Capex Coverage Ratio 4.83  7.65 
There are various types of dividends Marsh McLennan can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Marsh shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Marsh McLennan Companies directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Marsh pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Marsh McLennan by the value of the dividends paid out.

Marsh McLennan Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Marsh McLennan does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding499 M
Quarterly Earnings Growth Y O Y0.643
Forward Price Earnings23.6407

Marsh McLennan Current Valuation Indicators

Valuation refers to the process of determining the present value of Marsh McLennan Companies and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Marsh we look at many different elements of the entity such as Marsh's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Marsh McLennan's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Marsh McLennan's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Marsh McLennan, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Marsh McLennan's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Marsh McLennan's worth.
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 Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Marsh McLennan Companies. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in population.
You can also try the Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.

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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.