Based on the provided data, I'll analyze whether MMC is overvalued through multiple key metrics.
Valuation Analysis: MMC's current P/E ratio of 27.5x is significantly above its historical average of 20-24x, indicating potential overvaluation from a historical perspective.
Growth Trends: The company's revenue growth has slowed to 5% in Q3 2024, down from 9% in Q1 2024, while net margin declined from 22% to 13.2% over the same period, suggesting deteriorating operational efficiency.
Analyst Consensus: Recent analyst actions show mixed sentiment - RBC Capital upgraded to Buy with $250 target while Keefe, Bruyette & Woods maintains Sell with $214 target. The average analyst price target suggests about 11% upside potential.
Market Position: Despite slowing growth, MMC maintains its position as the largest insurance broker with strong recurring revenues and high barriers to entry.
Based on these factors, MMC appears moderately overvalued at current levels, primarily due to its premium valuation multiple amid decelerating growth and margin pressure.