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:
Below please find a table outlining a discounted cash flow forecast for MMC, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Marsh & Mclennan Companies Inc ranked in the 32th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 48.5%. In terms of the factors that were most noteworthy in this DCF analysis for MMC, they are:
Marsh & Mclennan Companies Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 22.82% of tickers in our DCF set.
As a business, Marsh & Mclennan Companies Inc experienced a tax rate of about 18% over the past twelve months; relative to its sector (Financial Services), this tax rate is higher than 71.06% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
FRHC, WU, PRA, KINS, and PRAA can be thought of as valuation peers to MMC, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.
The pending acquisition by insurance broker Aon of rival Willis Towers Watson is “not good for the market or for clients but is good for Marsh,” commented Daniel Glaser, president and chief executive officer of Marsh & McLennan Companies (MMC) …
Marsh & McLennan Companies, Inc. (NYSE: MMC), the world’s leading professional services firm in the areas of risk, strategy and people, today reported financial results for the second quarter ended June 30, 2020.