Marsh & McLennan Companies, Inc. (MMC) Company Bio
Marsh & McLennan Companies provides advice and solutions primarily in the areas of risk, strategy, and people worldwide. It operates in two segments, Risk and Insurance Services; and Consulting. The company was founded in 1871 and is based in New York, New York.
MMC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Marsh & Mclennan Companies Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Marsh & Mclennan Companies Inc ranked in the 30th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 31%. In terms of the factors that were most noteworthy in this DCF analysis for MMC, they are:
The company's balance sheet shows it gets 75% of its capital from equity, and 25% of its capital from debt. Notably, its equity weight is greater than 52.32% of US equities in the Financial Services sector yielding a positive free cash flow.
Marsh & Mclennan Companies Inc's effective tax rate, as measured by taxes paid relative to net income, is at 19 -- greater than 76.48% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Financial Services that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as MMC, try MORN, MCO, WLTW, WETF, and L.