MMC Relative Valuation
MMC's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, MMC is overvalued; if below, it's undervalued.
Historical Valuation
Marsh & McLennan Companies Inc (MMC) is now in the Undervalued zone, suggesting that its current forward PE ratio of 18.22 is considered Undervalued compared with the five-year average of 22.66. The fair price of Marsh & McLennan Companies Inc (MMC) is between 213.39 to 241.50 according to relative valuation methord. Compared to the current price of 183.87 USD , Marsh & McLennan Companies Inc is Undervalued By 13.83%.
Relative Value
Fair Zone
213.39-241.50
Current Price：183.87
13.83%
Undervalued
18.14
PE
1Y
3Y
5Y
Trailing
Forward
13.50
EV/EBITDA
Marsh & McLennan Companies Inc. (MMC) has a current EV/EBITDA of 13.50. The 5-year average EV/EBITDA is 16.07. The thresholds are as follows: Strongly Undervalued below 14.03, Undervalued between 14.03 and 15.05, Fairly Valued between 17.09 and 15.05, Overvalued between 17.09 and 18.11, and Strongly Overvalued above 18.11. The current Forward EV/EBITDA of 13.50 falls within the Strongly Undervalued range.
14.31
EV/EBIT
Marsh & McLennan Companies Inc. (MMC) has a current EV/EBIT of 14.31. The 5-year average EV/EBIT is 18.21. The thresholds are as follows: Strongly Undervalued below 15.50, Undervalued between 15.50 and 16.86, Fairly Valued between 19.57 and 16.86, Overvalued between 19.57 and 20.92, and Strongly Overvalued above 20.92. The current Forward EV/EBIT of 14.31 falls within the Strongly Undervalued range.
3.23
PS
Marsh & McLennan Companies Inc. (MMC) has a current PS of 3.23. The 5-year average PS is 3.84. The thresholds are as follows: Strongly Undervalued below 3.16, Undervalued between 3.16 and 3.50, Fairly Valued between 4.18 and 3.50, Overvalued between 4.18 and 4.52, and Strongly Overvalued above 4.52. The current Forward PS of 3.23 falls within the Undervalued range.
17.67
P/OCF
Marsh & McLennan Companies Inc. (MMC) has a current P/OCF of 17.67. The 5-year average P/OCF is 21.62. The thresholds are as follows: Strongly Undervalued below 17.18, Undervalued between 17.18 and 19.40, Fairly Valued between 23.83 and 19.40, Overvalued between 23.83 and 26.05, and Strongly Overvalued above 26.05. The current Forward P/OCF of 17.67 falls within the Undervalued range.
18.29
P/FCF
Marsh & McLennan Companies Inc. (MMC) has a current P/FCF of 18.29. The 5-year average P/FCF is 22.15. The thresholds are as follows: Strongly Undervalued below 17.35, Undervalued between 17.35 and 19.75, Fairly Valued between 24.55 and 19.75, Overvalued between 24.55 and 26.94, and Strongly Overvalued above 26.94. The current Forward P/FCF of 18.29 falls within the Undervalued range.
Marsh & McLennan Companies Inc (MMC) has a current Price-to-Book (P/B) ratio of 5.95. Compared to its 3-year average P/B ratio of 7.82 , the current P/B ratio is approximately -23.97% higher. Relative to its 5-year average P/B ratio of 7.68, the current P/B ratio is about -22.63% higher. Marsh & McLennan Companies Inc (MMC) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.76%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.90% , the current FCF yield is about -100.00% lower.
5.92
P/B
Median3y
7.82
Median5y
7.68
5.36
FCF Yield
Median3y
3.76
Median5y
3.90
Competitors Valuation Multiple
The average P/S ratio for MMC's competitors is , providing a benchmark for relative valuation. Marsh & McLennan Companies Inc Corp (MMC) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 11.48%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of MMC decreased by 13.75% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 5.70B to 6.35B.
The secondary factor is the Margin Expansion, contributed -9.70%to the performance.
Overall, the performance of MMC in the past 1 year is driven by Revenue Growth. Which is more sustainable.
People Also Watch
FAQ
Is Marsh & McLennan Companies Inc (MMC) currently overvalued or undervalued?
What is Marsh & McLennan Companies Inc (MMC) fair value?
How does MMC's valuation metrics compare to the industry average?
What is the current P/B ratio for Marsh & McLennan Companies Inc (MMC) as of Dec 05 2025?
What is the current FCF Yield for Marsh & McLennan Companies Inc (MMC) as of Dec 05 2025?
What is the current Forward P/E ratio for Marsh & McLennan Companies Inc (MMC) as of Dec 05 2025?