An independent two-stage DCF analysis by a frontier AI model.
8.7% projected annual growth, supported by structural tailwinds in risk complexity and sustained pricing power.
8.0%, a lower discount rate justified by highly visible, recurring revenues and a wide economic moat.
2.5%, a premium rate reflecting the enduring necessity of risk management and MMC's global dominance.
Intrinsic value per share under varying discount rate and terminal growth rate assumptions.
| WACC ↓ / Terminal → | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% |
|---|---|---|---|---|---|
| 1.5% | $333.23 | $272.64 | $230.70 | $199.94 | $176.41 |
| 2.0% | $374.88 | $299.90 | $249.92 | $214.22 | $187.44 |
| 2.5% | $428.43 | $333.23 | $272.64 | $230.70 | $199.94 |
| 3.0% | $499.84 | $374.88 | $299.90 | $249.92 | $214.22 |
| 3.5% | $599.81 | $428.43 | $333.23 | $272.64 | $230.70 |
■ Undervalued vs current price ■ Overvalued vs current price
Marsh McLennan boasts a formidable wide economic moat rooted in high switching costs, global scale, and specialized expertise. As the world's leading insurance broker and risk advisor, it generates highly recurring revenues and robust free cash flow, evidenced by 8.7% revenue growth and ~30% ROE. The essential nature of its risk, strategy, and people consulting services makes it resilient across economic cycles. While valuation multiples are historically high, the fundamental business quality is exceptional.
MMC demonstrates consistent, high-single-digit growth and dominant market share.
A wide moat is underpinned by extreme switching costs and an asset-light structure.
Flawless execution is widely recognized, though high valuations reflect this optimism.
Disclaimer: The numbers presented on this page are for educational and entertainment purposes only. They are the result of a deterministic mathematical model fed with assumptions generated by an Artificial Intelligence (Gemini 3.1). This does not constitute investment advice. Always conduct your own due diligence before investing in the stock market.