Latest Ratios: P/E Ratio 24.3x · EV/EBITDA 16.6x · ROE 28.8%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $97.7B | $90.9B | $105.4B | $94.5B | $83.6B | $89.2B | $59.9B | $56.9B | $40.8B | $42.2B | $35.4B |
| Enterprise Value | $116.5B | $109.7B | $124.8B | $106.6B | $95.6B | $100.6B | $71.4B | $70.0B | $45.5B | $46.5B | $39.2B |
| P/E Ratio → | 24.28 | 22.01 | 25.97 | 25.16 | 27.40 | 28.36 | 29.70 | 32.67 | 24.69 | 28.36 | 20.06 |
| P/S Ratio | 3.43 | 3.37 | 4.31 | 4.16 | 4.03 | 4.50 | 3.48 | 3.42 | 2.73 | 3.01 | 2.68 |
| P/B Ratio | 6.55 | 5.94 | 7.78 | 7.64 | 7.77 | 7.95 | 6.47 | 7.17 | 5.38 | 5.68 | 5.65 |
| P/FCF | 23.53 | 18.18 | 26.43 | 24.61 | 27.90 | 28.67 | 19.74 | 29.35 | 19.28 | 26.55 | 20.19 |
| P/OCF | 18.47 | 17.18 | 24.49 | 22.20 | 24.12 | 25.36 | 17.71 | 24.11 | 16.78 | 22.31 | 17.65 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.06 | 5.10 | 4.69 | 4.61 | 5.07 | 4.15 | 4.20 | 3.04 | 3.32 | 2.97 |
| EV / EBITDA | 16.64 | 15.37 | 19.02 | 17.79 | 19.12 | 19.88 | 18.75 | 21.06 | 13.98 | 14.84 | 13.66 |
| EV / EBIT | 18.72 | 16.91 | 20.20 | 19.03 | 21.01 | 21.62 | 21.58 | 23.62 | 17.96 | 16.15 | 14.69 |
| EV / FCF | — | 21.93 | 31.31 | 27.75 | 31.92 | 32.34 | 23.53 | 36.08 | 21.53 | 29.24 | 22.35 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 42.3% | 42.3% | 42.8% | 42.4% | 41.7% | 42.4% | 41.2% | 41.5% | 42.4% | 42.3% | 41.8% |
| Operating Margin | 23.1% | 23.1% | 23.8% | 23.2% | 20.7% | 21.8% | 17.8% | 16.1% | 18.5% | 18.9% | 18.4% |
| Net Profit Margin | 15.4% | 15.4% | 16.6% | 16.5% | 14.7% | 15.9% | 11.7% | 10.5% | 11.0% | 10.6% | 13.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 28.8% | 28.8% | 31.3% | 32.5% | 27.8% | 30.7% | 23.4% | 22.5% | 22.0% | 21.8% | 28.2% |
| ROA | 7.2% | 7.2% | 7.8% | 8.2% | 7.8% | 9.3% | 6.3% | 6.6% | 7.9% | 7.7% | 9.7% |
| ROIC | 13.9% | 13.9% | 15.2% | 16.8% | 14.1% | 14.9% | 11.0% | 12.0% | 17.2% | 18.3% | 18.1% |
| ROCE | 16.7% | 16.7% | 17.8% | 19.4% | 15.8% | 15.9% | 12.0% | 13.0% | 16.8% | 17.5% | 17.2% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.40 | 1.40 | 1.62 | 1.25 | 1.25 | 1.17 | 1.47 | 1.79 | 0.77 | 0.74 | 0.77 |
| Debt / EBITDA | 3.01 | 3.01 | 3.33 | 2.57 | 2.69 | 2.60 | 3.57 | 4.28 | 1.79 | 1.75 | 1.68 |
| Net Debt / Equity | — | 1.23 | 1.44 | 0.98 | 1.12 | 1.02 | 1.24 | 1.65 | 0.63 | 0.58 | 0.60 |
| Net Debt / EBITDA | 2.63 | 2.63 | 2.97 | 2.01 | 2.41 | 2.26 | 3.02 | 3.93 | 1.46 | 1.37 | 1.32 |
| Debt / FCF | — | 3.75 | 4.88 | 3.14 | 4.02 | 3.67 | 3.79 | 6.74 | 2.25 | 2.69 | 2.16 |
| Interest Coverage | 6.76 | 6.76 | 8.83 | 9.70 | 9.70 | 10.48 | 6.42 | 5.65 | 8.74 | 12.15 | 14.12 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.10 | 1.10 | 1.13 | 1.10 | 1.06 | 1.24 | 1.24 | 1.06 | 1.21 | 1.31 | 1.20 |
| Quick Ratio | 1.10 | 1.10 | 1.13 | 1.10 | 1.06 | 1.24 | 1.24 | 1.06 | 1.21 | 1.31 | 1.20 |
| Cash Ratio | 0.13 | 0.13 | 0.12 | 0.17 | 0.08 | 0.26 | 0.32 | 0.17 | 0.22 | 0.28 | 0.25 |
| Asset Turnover | — | 0.46 | 0.43 | 0.47 | 0.47 | 0.58 | 0.52 | 0.53 | 0.69 | 0.69 | 0.73 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 103.76 | 106.79 | 103.03 | 103.09 | 102.87 | 112.87 | 114.77 | 105.40 | 107.57 | 100.65 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.7% | 1.9% | 1.4% | 1.4% | 1.4% | 1.2% | 1.6% | 1.5% | 2.0% | 1.8% | 1.9% |
| Payout Ratio | 40.8% | 40.8% | 37.3% | 34.6% | 37.3% | 32.6% | 46.8% | 50.5% | 48.9% | 49.6% | 38.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.1% | 4.5% | 3.9% | 4.0% | 3.6% | 3.5% | 3.4% | 3.1% | 4.1% | 3.5% | 5.0% |
| FCF Yield | 4.2% | 5.5% | 3.8% | 4.1% | 3.6% | 3.5% | 5.1% | 3.4% | 5.2% | 3.8% | 5.0% |
| Buyback Yield | 2.1% | 2.2% | 0.9% | 1.2% | 2.3% | 1.3% | 0.0% | 1.0% | 1.8% | 2.2% | 2.4% |
| Total Shareholder Yield | 3.8% | 4.1% | 2.3% | 2.6% | 3.7% | 2.5% | 1.6% | 2.6% | 3.8% | 4.0% | 4.3% |
| Shares Outstanding | — | $490M | $496M | $499M | $505M | $513M | $512M | $511M | $511M | $519M | $524M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying MRSH stock.
Marsh & McLennan Companies, Inc.'s current P/E ratio is 24.3x. The historical average is 27.2x. This places it at the 48th percentile of its historical range.
Marsh & McLennan Companies, Inc.'s current EV/EBITDA is 16.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.3x.
Marsh & McLennan Companies, Inc.'s return on equity (ROE) is 28.8%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 21.2%.
Based on historical data, Marsh & McLennan Companies, Inc. is trading at a P/E of 24.3x. This is at the 48th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Marsh & McLennan Companies, Inc.'s current dividend yield is 1.69% with a payout ratio of 40.8%.
Marsh & McLennan Companies, Inc. has 42.3% gross margin and 23.1% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Marsh & McLennan Companies, Inc.'s Debt/EBITDA ratio is 3.0x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Fiduciary interest rate sensitivity
Metrics are mathematically derived from official filings.
Premium Valuation Reflects Quality Moat
Based on reported figures, MMC trades at a P/B of 6.38, a valuation multiple that appears to command a significant premium over peers like WTW, suggesting investors are pricing in the firm's superior data-driven brokerage model and its structural role within the global risk capital ecosystem.
The elevated P/B ratio relative to the broader insurance brokerage peer group indicates that the market assigns a 'quality premium' to MMC's integrated service offerings. This valuation suggests that investors expect sustained ROE expansion, though it warrants caution regarding whether current multiples are sustainable if fiduciary interest income moderates.
Disciplined Underwriting Amid Market Cycles
As reported in recent financial statements, MMC has maintained a combined ratio fluctuating between 70.3% and 81.6% over the last ten quarters, demonstrating a consistent ability to manage core brokerage costs while navigating the complexities of the current hard insurance market cycle.
The stability of the combined ratio suggests that MMC's operational discipline remains intact despite the inherent volatility of global risk markets. The firm's ability to keep the expense ratio below 22% consistently implies that scale benefits are being effectively realized across its primary brokerage and reinsurance segments.
ROE Drivers and Margin Resilience
According to quarterly performance data, MMC's ROE has shown significant variance, ranging from 4.8% to 11.2% over the past ten quarters, which appears to be heavily influenced by the cyclical nature of fiduciary interest income and the timing of large-scale reinsurance renewals.
The fluctuation in ROE suggests that while the core brokerage business is highly profitable, the firm's bottom line remains sensitive to external macroeconomic factors. Investors should monitor whether the firm can maintain these profitability levels if interest rates decline, as the current yield on float provides a non-trivial margin cushion.
Capital Structure and Underwriting Leverage
Based on the provided quarterly data, MMC's D/E ratio has fluctuated between 1.06 and 1.62, indicating a measured approach to leverage that appears consistent with the firm's strategy of funding inorganic growth while maintaining a robust capital base for its brokerage operations.
The firm's leverage profile appears adequate for its business model, though the variability in D/E suggests that management utilizes debt opportunistically for acquisitions. This capital structure supports the firm's ability to return value to shareholders while simultaneously investing in the data flywheel that underpins its competitive advantage.
Misapplication of Traditional Insurance Metrics
The most commonly misapplied metric for MMC is the traditional combined ratio, which, while useful for carriers, obscures the firm's role as a broker by failing to account for the significant impact of fiduciary interest income on reported underwriting margins.
Because MMC acts as a custodian of premiums rather than a risk-bearing carrier, applying carrier-specific combined ratio analysis can lead to an incomplete understanding of operational efficiency. Analysts should instead focus on organic revenue growth and adjusted operating margins that strip out the transient benefits of fiduciary interest income to better gauge the underlying health of the brokerage business.