MARSH & MCLENNAN COMPANIES, INC. (MMC)

Insurance Agents, Brokers & Service

Latest Price

$182.70

TTM P/E

Normalized P/E

Div Yield

Book Value

P/B Ratio

Valuation metrics

Norm. op. income: $4.3B (median of 7yr)

Tax rate: 25%

Discount rate: 10%

Growth assumption: zero (EPV is a no-growth value)

Earnings Power Value

$29.60

84% downside

Base FCF: $3.8B (median of recent 5yr)

Growth: 14%/yr (median YOY, capped at 25%)

Discount rate: 10%

Terminal growth: 3%

Projection horizon: 10 years

DCF Fair Value

$233.47

+28% upside

EPS: $8.43

Target P/E: 15×

Formula: EPS × P/E

P/E Fair Value

$126.45

31% downside