Intrinsic value of Marsh&McLennan - MMC

Previous Close

$83.93

  Intrinsic Value

$97.29

stock screener

  Rating & Target

hold

+16%

Previous close

$83.93

 
Intrinsic value

$97.29

 
Up/down potential

+16%

 
Rating

hold

Our model is not good at valuating stocks of financial companies, such as MMC.

We calculate the intrinsic value of MMC stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 43.0

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  2.47
  3.50
  3.65
  3.78
  3.91
  4.02
  4.11
  4.20
  4.28
  4.35
  4.42
  4.48
  4.53
  4.58
  4.62
  4.66
  4.69
  4.72
  4.75
  4.77
  4.80
  4.82
  4.84
  4.85
  4.87
  4.88
  4.89
  4.90
  4.91
  4.92
  4.93
Revenue, $m
  13,211
  13,673
  14,172
  14,709
  15,283
  15,897
  16,551
  17,247
  17,986
  18,769
  19,598
  20,475
  21,403
  22,382
  23,416
  24,507
  25,656
  26,868
  28,144
  29,488
  30,902
  32,391
  33,957
  35,605
  37,338
  39,160
  41,076
  43,090
  45,207
  47,432
  49,770
Variable operating expenses, $m
 
  3,116
  3,199
  3,288
  3,384
  3,486
  3,595
  3,711
  3,834
  3,965
  4,103
  3,412
  3,567
  3,730
  3,902
  4,084
  4,276
  4,478
  4,690
  4,914
  5,150
  5,398
  5,659
  5,934
  6,222
  6,526
  6,845
  7,181
  7,534
  7,905
  8,294
Fixed operating expenses, $m
 
  7,895
  8,092
  8,294
  8,502
  8,714
  8,932
  9,155
  9,384
  9,619
  9,859
  10,106
  10,358
  10,617
  10,883
  11,155
  11,434
  11,720
  12,012
  12,313
  12,621
  12,936
  13,260
  13,591
  13,931
  14,279
  14,636
  15,002
  15,377
  15,761
  16,155
Total operating expenses, $m
  10,547
  11,011
  11,291
  11,582
  11,886
  12,200
  12,527
  12,866
  13,218
  13,584
  13,962
  13,518
  13,925
  14,347
  14,785
  15,239
  15,710
  16,198
  16,702
  17,227
  17,771
  18,334
  18,919
  19,525
  20,153
  20,805
  21,481
  22,183
  22,911
  23,666
  24,449
Operating income, $m
  2,664
  2,663
  2,882
  3,127
  3,398
  3,697
  4,024
  4,381
  4,767
  5,185
  5,636
  6,958
  7,478
  8,035
  8,631
  9,268
  9,947
  10,671
  11,441
  12,261
  13,132
  14,057
  15,039
  16,081
  17,185
  18,355
  19,595
  20,907
  22,296
  23,766
  25,320
EBITDA, $m
  3,102
  3,584
  3,805
  4,053
  4,328
  4,631
  4,962
  5,323
  5,714
  6,137
  6,593
  7,083
  7,609
  8,172
  8,774
  9,418
  10,104
  10,835
  11,613
  12,441
  13,321
  14,255
  15,247
  16,299
  17,413
  18,595
  19,846
  21,171
  22,573
  24,056
  25,625
Interest expense (income), $m
  178
  175
  191
  208
  227
  247
  268
  290
  314
  340
  367
  396
  426
  458
  492
  527
  565
  604
  646
  690
  737
  785
  837
  891
  948
  1,007
  1,070
  1,136
  1,206
  1,279
  1,356
Earnings before tax, $m
  2,480
  2,488
  2,691
  2,918
  3,171
  3,450
  3,756
  4,090
  4,453
  4,845
  5,269
  6,562
  7,052
  7,577
  8,139
  8,740
  9,382
  10,066
  10,795
  11,570
  12,395
  13,271
  14,202
  15,190
  16,237
  17,348
  18,524
  19,771
  21,090
  22,487
  23,965
Tax expense, $m
  685
  672
  726
  788
  856
  932
  1,014
  1,104
  1,202
  1,308
  1,423
  1,772
  1,904
  2,046
  2,198
  2,360
  2,533
  2,718
  2,915
  3,124
  3,347
  3,583
  3,835
  4,101
  4,384
  4,684
  5,002
  5,338
  5,694
  6,072
  6,470
Net income, $m
  1,768
  1,816
  1,964
  2,130
  2,315
  2,519
  2,742
  2,986
  3,251
  3,537
  3,846
  4,790
  5,148
  5,531
  5,942
  6,381
  6,849
  7,348
  7,880
  8,446
  9,048
  9,688
  10,368
  11,088
  11,853
  12,664
  13,523
  14,433
  15,396
  16,416
  17,494

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  1,026
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  18,190
  17,758
  18,406
  19,102
  19,849
  20,646
  21,495
  22,399
  23,358
  24,375
  25,452
  26,592
  27,796
  29,068
  30,411
  31,827
  33,320
  34,893
  36,550
  38,296
  40,133
  42,066
  44,101
  46,241
  48,491
  50,858
  53,346
  55,961
  58,711
  61,600
  64,636
Adjusted assets (=assets-cash), $m
  17,164
  17,758
  18,406
  19,102
  19,849
  20,646
  21,495
  22,399
  23,358
  24,375
  25,452
  26,592
  27,796
  29,068
  30,411
  31,827
  33,320
  34,893
  36,550
  38,296
  40,133
  42,066
  44,101
  46,241
  48,491
  50,858
  53,346
  55,961
  58,711
  61,600
  64,636
Revenue / Adjusted assets
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
Average production assets, $m
  1,830
  1,901
  1,970
  2,045
  2,124
  2,210
  2,301
  2,397
  2,500
  2,609
  2,724
  2,846
  2,975
  3,111
  3,255
  3,406
  3,566
  3,735
  3,912
  4,099
  4,295
  4,502
  4,720
  4,949
  5,190
  5,443
  5,710
  5,990
  6,284
  6,593
  6,918
Working capital, $m
  802
  96
  99
  103
  107
  111
  116
  121
  126
  131
  137
  143
  150
  157
  164
  172
  180
  188
  197
  206
  216
  227
  238
  249
  261
  274
  288
  302
  316
  332
  348
Total debt, $m
  4,807
  4,902
  5,343
  5,818
  6,326
  6,869
  7,447
  8,062
  8,716
  9,408
  10,142
  10,918
  11,738
  12,604
  13,519
  14,483
  15,500
  16,571
  17,700
  18,888
  20,139
  21,456
  22,842
  24,299
  25,831
  27,443
  29,137
  30,919
  32,791
  34,759
  36,826
Total liabilities, $m
  11,998
  12,093
  12,534
  13,009
  13,517
  14,060
  14,638
  15,253
  15,907
  16,599
  17,333
  18,109
  18,929
  19,795
  20,710
  21,674
  22,691
  23,762
  24,891
  26,079
  27,330
  28,647
  30,033
  31,490
  33,022
  34,634
  36,328
  38,110
  39,982
  41,950
  44,017
Total equity, $m
  6,192
  5,665
  5,871
  6,094
  6,332
  6,586
  6,857
  7,145
  7,451
  7,776
  8,119
  8,483
  8,867
  9,273
  9,701
  10,153
  10,629
  11,131
  11,660
  12,216
  12,802
  13,419
  14,068
  14,751
  15,469
  16,224
  17,017
  17,852
  18,729
  19,650
  20,619
Total liabilities and equity, $m
  18,190
  17,758
  18,405
  19,103
  19,849
  20,646
  21,495
  22,398
  23,358
  24,375
  25,452
  26,592
  27,796
  29,068
  30,411
  31,827
  33,320
  34,893
  36,551
  38,295
  40,132
  42,066
  44,101
  46,241
  48,491
  50,858
  53,345
  55,962
  58,711
  61,600
  64,636
Debt-to-equity ratio
  0.776
  0.870
  0.910
  0.950
  1.000
  1.040
  1.090
  1.130
  1.170
  1.210
  1.250
  1.290
  1.320
  1.360
  1.390
  1.430
  1.460
  1.490
  1.520
  1.550
  1.570
  1.600
  1.620
  1.650
  1.670
  1.690
  1.710
  1.730
  1.750
  1.770
  1.790
Adjusted equity ratio
  0.301
  0.319
  0.319
  0.319
  0.319
  0.319
  0.319
  0.319
  0.319
  0.319
  0.319
  0.319
  0.319
  0.319
  0.319
  0.319
  0.319
  0.319
  0.319
  0.319
  0.319
  0.319
  0.319
  0.319
  0.319
  0.319
  0.319
  0.319
  0.319
  0.319
  0.319

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,768
  1,816
  1,964
  2,130
  2,315
  2,519
  2,742
  2,986
  3,251
  3,537
  3,846
  4,790
  5,148
  5,531
  5,942
  6,381
  6,849
  7,348
  7,880
  8,446
  9,048
  9,688
  10,368
  11,088
  11,853
  12,664
  13,523
  14,433
  15,396
  16,416
  17,494
Depreciation, amort., depletion, $m
  438
  921
  924
  927
  930
  934
  938
  943
  947
  952
  957
  125
  131
  137
  143
  150
  157
  165
  172
  181
  189
  198
  208
  218
  229
  240
  252
  264
  277
  290
  305
Funds from operations, $m
  1,538
  2,737
  2,888
  3,057
  3,245
  3,453
  3,680
  3,928
  4,198
  4,489
  4,803
  4,916
  5,279
  5,668
  6,085
  6,531
  7,006
  7,513
  8,053
  8,627
  9,238
  9,887
  10,575
  11,306
  12,082
  12,904
  13,774
  14,697
  15,673
  16,706
  17,799
Change in working capital, $m
  -469
  3
  3
  4
  4
  4
  5
  5
  5
  5
  6
  6
  6
  7
  7
  8
  8
  8
  9
  9
  10
  10
  11
  12
  12
  13
  13
  14
  15
  16
  16
Cash from operations, $m
  2,007
  2,734
  2,884
  3,053
  3,241
  3,449
  3,676
  3,923
  4,192
  4,483
  4,797
  4,909
  5,272
  5,662
  6,078
  6,523
  6,998
  7,504
  8,044
  8,618
  9,228
  9,876
  10,564
  11,295
  12,070
  12,891
  13,761
  14,682
  15,658
  16,690
  17,783
Maintenance CAPEX, $m
  0
  -81
  -84
  -87
  -90
  -94
  -97
  -101
  -106
  -110
  -115
  -120
  -125
  -131
  -137
  -143
  -150
  -157
  -165
  -172
  -181
  -189
  -198
  -208
  -218
  -229
  -240
  -252
  -264
  -277
  -290
New CAPEX, $m
  -253
  -71
  -69
  -75
  -80
  -85
  -91
  -97
  -103
  -109
  -115
  -122
  -129
  -136
  -144
  -152
  -160
  -168
  -177
  -187
  -197
  -207
  -218
  -229
  -241
  -253
  -266
  -280
  -294
  -309
  -325
Cash from investing activities, $m
  -1,056
  -152
  -153
  -162
  -170
  -179
  -188
  -198
  -209
  -219
  -230
  -242
  -254
  -267
  -281
  -295
  -310
  -325
  -342
  -359
  -378
  -396
  -416
  -437
  -459
  -482
  -506
  -532
  -558
  -586
  -615
Free cash flow, $m
  951
  2,582
  2,731
  2,892
  3,071
  3,270
  3,487
  3,725
  3,984
  4,264
  4,567
  4,668
  5,018
  5,394
  5,797
  6,228
  6,688
  7,179
  7,702
  8,258
  8,851
  9,480
  10,148
  10,858
  11,611
  12,409
  13,255
  14,151
  15,100
  16,104
  17,167
Issuance/(repayment) of debt, $m
  385
  407
  441
  474
  508
  543
  578
  615
  653
  693
  734
  776
  820
  866
  914
  964
  1,017
  1,071
  1,129
  1,189
  1,251
  1,317
  1,385
  1,457
  1,533
  1,612
  1,694
  1,781
  1,872
  1,968
  2,068
Issuance/(repurchase) of shares, $m
  -651
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -385
  407
  441
  474
  508
  543
  578
  615
  653
  693
  734
  776
  820
  866
  914
  964
  1,017
  1,071
  1,129
  1,189
  1,251
  1,317
  1,385
  1,457
  1,533
  1,612
  1,694
  1,781
  1,872
  1,968
  2,068
Total cash flow (excl. dividends), $m
  334
  2,989
  3,173
  3,367
  3,580
  3,813
  4,066
  4,341
  4,637
  4,957
  5,301
  5,443
  5,838
  6,261
  6,712
  7,192
  7,705
  8,250
  8,830
  9,447
  10,102
  10,797
  11,534
  12,315
  13,143
  14,021
  14,949
  15,932
  16,972
  18,072
  19,235
Retained Cash Flow (-), $m
  321
  -187
  -207
  -222
  -238
  -254
  -271
  -288
  -306
  -324
  -344
  -363
  -384
  -406
  -428
  -452
  -476
  -502
  -529
  -557
  -586
  -617
  -649
  -683
  -718
  -755
  -794
  -834
  -877
  -922
  -969
Prev. year cash balance distribution, $m
 
  714
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  3,517
  2,966
  3,144
  3,342
  3,558
  3,795
  4,052
  4,331
  4,633
  4,957
  5,080
  5,454
  5,855
  6,283
  6,741
  7,229
  7,748
  8,302
  8,890
  9,516
  10,180
  10,885
  11,633
  12,425
  13,266
  14,156
  15,098
  16,095
  17,150
  18,266
Discount rate, %
 
  4.50
  4.73
  4.96
  5.21
  5.47
  5.74
  6.03
  6.33
  6.65
  6.98
  7.33
  7.70
  8.08
  8.49
  8.91
  9.36
  9.82
  10.31
  10.83
  11.37
  11.94
  12.54
  13.16
  13.82
  14.51
  15.24
  16.00
  16.80
  17.64
  18.52
PV of cash for distribution, $m
 
  3,365
  2,704
  2,719
  2,727
  2,726
  2,715
  2,690
  2,650
  2,596
  2,524
  2,333
  2,240
  2,132
  2,009
  1,874
  1,728
  1,576
  1,418
  1,260
  1,104
  953
  810
  677
  556
  448
  354
  274
  208
  154
  112
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Marsh & McLennan Companies, Inc. is a professional services firm offering clients advice and solutions in risk, strategy and people. The Company is the parent company of various risk advisors and specialty consultants, including Marsh, the insurance broker; Guy Carpenter, the risk and reinsurance specialist; Mercer, the provider of human resource and investment related financial advice and services, and Oliver Wyman Group, the management and economic consultancy. It conducts business through two segments: Risk and Insurance Services, which includes risk management activities, as well as insurance and reinsurance broking and services, and Consulting includes health, retirement, talent and investments consulting services and products, and specialized management, economic and brand consulting services. It conducts business in the Risk and Insurance Services segment through Marsh and Guy Carpenter. It conducts business in the Consulting segment through Mercer and Oliver Wyman Group.

FINANCIAL RATIOS  of  Marsh&McLennan (MMC)

Valuation Ratios
P/E Ratio 24.4
Price to Sales 3.3
Price to Book 7
Price to Tangible Book
Price to Cash Flow 21.5
Price to Free Cash Flow 24.6
Growth Rates
Sales Growth Rate 2.5%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -22.2%
Cap. Spend. - 3 Yr. Gr. Rate -8.8%
Financial Strength
Quick Ratio 3
Current Ratio 0.1
LT Debt to Equity 72.6%
Total Debt to Equity 77.6%
Interest Coverage 15
Management Effectiveness
Return On Assets 10.4%
Ret/ On Assets - 3 Yr. Avg. 9.7%
Return On Total Capital 16.1%
Ret/ On T. Cap. - 3 Yr. Avg. 15%
Return On Equity 27.8%
Return On Equity - 3 Yr. Avg. 23.7%
Asset Turnover 0.7
Profitability Ratios
Gross Margin 43.5%
Gross Margin - 3 Yr. Avg. 42.9%
EBITDA Margin 23.4%
EBITDA Margin - 3 Yr. Avg. 22%
Operating Margin 20.2%
Oper. Margin - 3 Yr. Avg. 18.5%
Pre-Tax Margin 18.8%
Pre-Tax Margin - 3 Yr. Avg. 17.5%
Net Profit Margin 13.4%
Net Profit Margin - 3 Yr. Avg. 12.4%
Effective Tax Rate 27.6%
Eff/ Tax Rate - 3 Yr. Avg. 28.4%
Payout Ratio 38.6%

MMC stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the MMC stock intrinsic value calculation we used $13211 million for the last fiscal year's total revenue generated by Marsh&McLennan. The default revenue input number comes from 2016 income statement of Marsh&McLennan. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our MMC stock valuation model: a) initial revenue growth rate of 3.5% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.5%, whose default value for MMC is calculated based on our internal credit rating of Marsh&McLennan, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Marsh&McLennan.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of MMC stock the variable cost ratio is equal to 23%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $7702 million in the base year in the intrinsic value calculation for MMC stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.9% for Marsh&McLennan.

Corporate tax rate of 27% is the nominal tax rate for Marsh&McLennan. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the MMC stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for MMC are equal to 13.9%.

Life of production assets of 22.7 years is the average useful life of capital assets used in Marsh&McLennan operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for MMC is equal to 0.7%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $6192 million for Marsh&McLennan - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 512.553 million for Marsh&McLennan is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Marsh&McLennan at the current share price and the inputted number of shares is $43.0 billion.

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COMPANY NEWS

▶ Why retiring in America has become less attractive   [Nov-11-17 11:52AM  MarketWatch]
▶ Marsh & McLennan tops Street 3Q forecasts   [07:37AM  Associated Press]
▶ How To Redefine The Role Of Business In Society   [Sep-28-17 01:40PM  Fortune]
▶ Wall Street Weak Ahead of Hurricane Irma   [03:27PM  GuruFocus.com]
▶ Marsh Announces New Global Management Structure   [Sep-06-17 04:15PM  Business Wire]
▶ Marsh & McLennan meets 2Q profit forecasts   [Jul-27-17 11:46PM  Associated Press]
▶ Rohit Mehrotra Named CEO of Mercer Digital   [Jul-19-17 09:00AM  Business Wire]
▶ Energy Economist Joins NERA Economic Consulting   [Jul-13-17 10:00AM  Business Wire]
▶ Mercer Hosts Job Fairs in Greater Des Moines Area   [Jul-12-17 10:14AM  Business Wire]
Financial statements of MMC
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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