Marsh & McLennan Companies, Inc. (MMC) Financial Ratios
30 years of historical data (1995–2024) · Financial Services · Insurance - Brokers
EV/EBITDA
↑
15.96
↓-16% vs avg
5yr avg: 18.91
30Y Low8.7·High21.1
P/FCF
↑
21.39
↓-16% vs avg
5yr avg: 25.47
30Y Low10.4·High91.3
P/B Ratio
↑
6.38
↓-15% vs avg
5yr avg: 7.52
30Y Low1.8·High7.9
ROE
↑
31.3%
↓+8% vs avg
5yr avg: 29.1%
30Y Low-1%·High36%
Debt/EBITDA
↓
3.33
+13% vs avg
5yr avg: 2.95
30Y Low1.0·High5.1
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
MMC Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Marsh & McLennan Companies, Inc. trades at 21.3x earnings, 22% below its 5-year average of 27.3x, sitting at the 45th percentile of its historical range. Compared to the Financial Services sector median P/E of 13.6x, the stock trades at a premium of 57%. On a free-cash-flow basis, the stock trades at 21.4x P/FCF, 16% below the 5-year average of 25.5x.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $85.3B | $105.4B | $94.5B | $83.6B | $89.2B | $59.9B | $56.9B | $40.8B | $42.2B | $35.4B | $29.7B |
| Enterprise Value | $104.7B | $124.8B | $106.6B | $95.6B | $100.6B | $71.4B | $70.0B | $45.5B | $46.5B | $39.2B | $32.8B |
| P/E Ratio → | 21.28 | 25.97 | 25.16 | 27.40 | 28.36 | 29.70 | 32.67 | 24.69 | 28.36 | 20.06 | 18.61 |
| P/S Ratio | 3.49 | 4.31 | 4.16 | 4.03 | 4.50 | 3.48 | 3.42 | 2.73 | 3.01 | 2.68 | 2.31 |
| P/B Ratio | 6.38 | 7.78 | 7.64 | 7.77 | 7.95 | 6.47 | 7.17 | 5.38 | 5.68 | 5.65 | 4.50 |
| P/FCF | 21.39 | 26.43 | 24.61 | 27.90 | 28.67 | 19.74 | 29.35 | 19.28 | 26.55 | 20.19 | 19.02 |
| P/OCF | 19.82 | 24.49 | 22.20 | 24.12 | 25.36 | 17.71 | 24.11 | 16.78 | 22.31 | 17.65 | 15.74 |
P/E links to full P/E history page with 30-year chart
MMC EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Marsh & McLennan Companies, Inc.'s enterprise value stands at 16.0x EBITDA, 16% below its 5-year average of 18.9x. The Financial Services sector median is 11.4x, placing the stock at a 40% premium on an enterprise-value basis.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 5.10 | 4.69 | 4.61 | 5.07 | 4.15 | 4.20 | 3.04 | 3.32 | 2.97 | 2.54 |
| EV / EBITDA | 15.96 | 19.02 | 17.79 | 19.12 | 19.88 | 18.75 | 21.06 | 13.98 | 14.84 | 13.66 | 11.53 |
| EV / EBIT | 18.01 | 20.20 | 19.03 | 21.01 | 21.62 | 21.58 | 23.62 | 17.96 | 16.15 | 14.69 | 13.26 |
| EV / FCF | — | 31.31 | 27.75 | 31.92 | 32.34 | 23.53 | 36.08 | 21.53 | 29.24 | 22.35 | 20.96 |
MMC Profitability
Margins and return-on-capital ratios measuring operating efficiency
Marsh & McLennan Companies, Inc. earns an operating margin of 23.8%, above the Financial Services sector average of 20.3%. Operating margins have expanded from 20.7% to 23.8% over the past 3 years, signaling improving operational efficiency. Return on equity of 31.3% is exceptionally high — well above the sector median of 9.0%. ROIC of 15.2% represents solid returns on invested capital versus a sector median of 5.5%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 42.8% | 42.8% | 42.4% | 41.7% | 42.4% | 41.2% | 41.5% | 42.4% | 42.3% | 41.8% | 43.1% |
| Operating Margin | 23.8% | 23.8% | 23.2% | 20.7% | 21.8% | 17.8% | 16.1% | 18.5% | 18.9% | 18.4% | 18.8% |
| Net Profit Margin | 16.6% | 16.6% | 16.5% | 14.7% | 15.9% | 11.7% | 10.5% | 11.0% | 10.6% | 13.4% | 12.4% |
Return on Capital
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 31.3% | 31.3% | 32.5% | 27.8% | 30.7% | 23.4% | 22.5% | 22.0% | 21.8% | 27.5% | 23.3% |
| ROA | 7.8% | 7.8% | 9.2% | 9.0% | 9.3% | 6.3% | 6.6% | 7.9% | 7.7% | 9.7% | 8.9% |
| ROIC | 15.2% | 15.2% | 16.8% | 14.1% | 14.9% | 11.0% | 12.0% | 17.2% | 18.3% | 18.5% | 19.9% |
| ROCE | 17.8% | 17.8% | 24.1% | 19.7% | 15.9% | 12.0% | 13.0% | 16.8% | 17.5% | 17.0% | 16.9% |
MMC Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Marsh & McLennan Companies, Inc. carries a Debt/EBITDA ratio of 3.3x, which is moderately leveraged (22% below the sector average of 4.3x). Net debt stands at $19.5B ($21.9B total debt minus $2.4B cash). Interest coverage of 8.3x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.62 | 1.62 | 1.25 | 1.25 | 1.17 | 1.47 | 1.79 | 0.77 | 0.74 | 0.77 | 0.67 |
| Debt / EBITDA | 3.33 | 3.33 | 2.57 | 2.69 | 2.60 | 3.57 | 4.28 | 1.79 | 1.75 | 1.68 | 1.55 |
| Net Debt / Equity | — | 1.44 | 0.98 | 1.12 | 1.02 | 1.24 | 1.65 | 0.63 | 0.58 | 0.60 | 0.46 |
| Net Debt / EBITDA | 2.97 | 2.97 | 2.01 | 2.41 | 2.26 | 3.02 | 3.93 | 1.46 | 1.37 | 1.32 | 1.07 |
| Debt / FCF | — | 4.88 | 3.14 | 4.02 | 3.67 | 3.79 | 6.74 | 2.25 | 2.69 | 2.16 | 1.94 |
| Interest Coverage | 8.31 | 8.31 | 9.14 | 9.13 | 9.71 | 5.95 | 5.11 | 9.52 | 11.20 | 12.86 | 14.84 |
MMC Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.13x means Marsh & McLennan Companies, Inc. can comfortably meet its short-term obligations, though there is limited excess liquidity. The current ratio has improved from 0.47x to 1.13x over the past 3 years.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.13 | 1.13 | 1.10 | 0.47 | 1.24 | 1.24 | 1.06 | 1.21 | 1.31 | 1.20 | 1.36 |
| Quick Ratio | 1.13 | 1.13 | 1.10 | 0.47 | 1.24 | 1.24 | 1.06 | 1.21 | 1.31 | 1.20 | 1.36 |
| Cash Ratio | 0.12 | 0.12 | 0.17 | 0.08 | 0.26 | 0.32 | 0.17 | 0.22 | 0.28 | 0.25 | 0.37 |
| Asset Turnover | — | 0.43 | 0.47 | 0.62 | 0.58 | 0.52 | 0.53 | 0.69 | 0.69 | 0.73 | 0.71 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
MMC Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Marsh & McLennan Companies, Inc. returns 2.8% to shareholders annually — split between a 1.8% dividend yield and 1.1% buyback yield. The payout ratio of 37.3% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 4.7% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.8% | 1.4% | 1.4% | 1.4% | 1.2% | 1.6% | 1.5% | 2.0% | 1.8% | 1.9% | 2.1% |
| Payout Ratio | 37.3% | 37.3% | 34.6% | 37.3% | 32.6% | 46.8% | 50.5% | 48.9% | 49.6% | 38.6% | 39.5% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.7% | 3.9% | 4.0% | 3.6% | 3.5% | 3.4% | 3.1% | 4.1% | 3.5% | 5.0% | 5.4% |
| FCF Yield | 4.7% | 3.8% | 4.1% | 3.6% | 3.5% | 5.1% | 3.4% | 5.2% | 3.8% | 5.0% | 5.3% |
| Buyback Yield | 1.1% | 0.9% | 1.2% | 2.3% | 1.3% | 0.0% | 1.0% | 1.8% | 2.2% | 2.4% | 4.9% |
| Total Shareholder Yield | 2.8% | 2.3% | 2.6% | 3.7% | 2.5% | 1.6% | 2.6% | 3.8% | 4.0% | 4.3% | 7.0% |
| Shares Outstanding | — | $496M | $499M | $505M | $513M | $512M | $511M | $511M | $519M | $524M | $536M |
Peer Comparison
Compare MMC with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 MMCYou | $85B | 21.3 | 16.0 | 21.4 | 42.8% | 23.8% | 31.3% | 15.2% | 3.3 |
 AON | $68B | 18.7 | 15.7 | 21.2 | 47.7% | 25.3% | 46.3% | 13.5% | 3.1 |
 WTW | $24B | 15.7 | 10.5 | 15.6 | 42.1% | 23.0% | 20.0% | 14.0% | 2.6 |
 AJG | $55B | 37.2 | 18.4 | 30.8 | 54.8% | 18.3% | 6.9% | 7.0% | 3.8 |
 BRO | $20B | 18.7 | 13.1 | 14.6 | 87.7% | 28.5% | 11.1% | 8.7% | 3.8 |
 MCO | $80B | 33.0 | 21.6 | 31.0 | 68.2% | 44.8% | 62.0% | 22.5% | 1.9 |
 SPGI | $122B | 28.0 | 17.5 | 22.3 | 70.2% | 42.2% | 12.1% | 9.7% | 1.9 |
 HWC | $6B | 12.4 | 9.9 | 11.0 | 73.1% | 31.0% | 11.3% | 8.6% | 2.0 |
 RYAN | $5B | 74.4 | 8.7 | 7.9 | 90.6% | 20.5% | 5.4% | 10.8% | 3.9 |
 ERIE | $10B | 20.8 | 12.4 | 17.9 | 15.8% | 17.7% | 26.2% | 29.5% | — |
 EG | $14B | 8.9 | 7.6 | 4.0 | 20.5% | 11.3% | 10.8% | 8.1% | 1.7 |
| Financial Services Median | — | 13.6 | 11.4 | 11.1 | 64.1% | 20.3% | 9.0% | 5.5% | 4.3 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 30 years · Updated daily
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MMC — Frequently Asked Questions
Quick answers to the most common questions about buying MMC stock.
What is Marsh & McLennan Companies, Inc.'s P/E ratio?
Marsh & McLennan Companies, Inc.'s current P/E ratio is 21.3x. The historical average is 27.0x. This places it at the 45th percentile of its historical range.
What is Marsh & McLennan Companies, Inc.'s EV/EBITDA?
Marsh & McLennan Companies, Inc.'s current EV/EBITDA is 16.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.1x.
What is Marsh & McLennan Companies, Inc.'s ROE?
Marsh & McLennan Companies, Inc.'s return on equity (ROE) is 31.3%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 21.1%.
Is MMC stock overvalued?
Based on historical data, Marsh & McLennan Companies, Inc. is trading at a P/E of 21.3x. This is at the 45th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Marsh & McLennan Companies, Inc.'s dividend yield?
Marsh & McLennan Companies, Inc.'s current dividend yield is 1.75% with a payout ratio of 37.3%.
What are Marsh & McLennan Companies, Inc.'s profit margins?
Marsh & McLennan Companies, Inc. has 42.8% gross margin and 23.8% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Marsh & McLennan Companies, Inc. have?
Marsh & McLennan Companies, Inc.'s Debt/EBITDA ratio is 3.3x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.