Marsh & McLennan Companies, Inc. (MRSH) is a publicly traded company in the Financial Services — Insurance - Brokers industry listed on NYSE. This overview shows the latest price, key valuation ratios, profitability metrics and financial-health indicators used by fundamental investors.
Marsh & McLennan Companies, Inc. (MRSH) functions as a leading professional services organization, delivering expert guidance and innovative solutions to clients across the vital domains of risk management, strategic planning, and human capital. Based in New York City, the firm maintains a substantial global workforce, employing approximately 65,000 full-time professionals. This entity serves as the parent company for several prominent advisory and consulting brands.
Is Marsh & McLennan Companies, Inc. stock overvalued or undervalued in 2026?
Marsh & McLennan Companies, Inc. (MRSH) trades at 24.0× earnings (P/E), against a median of 12.9× across the 321 financial services companies above $2bn in Kaplio's universe. At Kaplio's cap P/B for its ROE 27.2 % (2.0×) $62 (-69 %); at its peers' median (3.9×) $120 (-40 %).
Kaplio overview: Marsh & McLennan Companies, Inc.
Market cap $96B · 52 weeks $157 – $201 (0 % below the high) · P/E 24.0× · 2027 est. P/E 17.5× · Dividend 1.9 % · ≥ 11 years rising · Next earnings January 28, 2027 · expected EPS $2.20 · Closing price, Oct 30 · accounts published Oct 15.
- Valuation: P/B 6.5× (expensive).
- Business: 5-year op. margin 22.5 % (excellent).
- Balance sheet: Debt/Equity 1.52 (fragile).
- Earnings: 8 of 8 (on track).
What would it be worth at its usual multiples?
At Kaplio's cap P/B for its ROE 27.2 % (2.0×) $62 (-69 %); at its peers' median (3.9×) $120 (-40 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.
What matters in insurance: 3 of 5 pass
- Debt / Equity 1.52, fails.
- P/B (Price / Book) 6.5×, fails.
- Op Margin 5y (Combined Ratio proxy) 22.5 %, passes.
- Book Value / Share growth 11.5 %, passes.
- Dividend growth streak 11 years, passes, near the threshold.
Against its peers (reference peers) — Marsh & McLennan Companies, Inc.: P/E 24.0×; P/B 6.5×; ROE 27.1 %; $95.7B. Arthur J. Gallagher & Co. (P/E 42.2×; P/B 3.0×; ROE 7.2 %; $70.8B), Aon plc (P/E 17.6×; P/B 6.8×; ROE 40.4 %; $68.2B), Willis Towers Watson Public Limited Company (P/E 19.8×; P/B 3.9×; ROE 19.9 %; $29.9B).
Expensive or cheap against its last ten fiscal years?
P/B at each close: today 6.5× · median 7.2× · minimum 5.1× · maximum 9.5× · cheap below 6.5× · expensive above 8.4×. It has been cheaper than today only 29% of the time over its last ten fiscal years.
Dividend
solid · Yield 1.9 % ($3.49 per share in 2025) · Years raising it ≥ 11 · 5-year growth +13 % a year · Free cash flow coverage payout 41 % · With $1,000 invested today you'd collect $18.80 a year ($1.57 a month).
Kaplio's reading: Marsh & McLennan Companies, Inc.
Updated on October 16, 2026 · accounts published on October 15, 2026
Reading of October 15, 2026: A highly profitable business with steady growth and a leveraged balance sheet
Marsh & McLennan Companies trades at a P/E of 22.8× over the last 12 months, 20 % below its ten-year median of 28.3× but 71 % above its sector.
- Is Marsh & McLennan Companies expensive or cheap? Its P/E of 22.8× is 20 % below its ten-year median, yet 71 % above the sector median of 13.4×.
- How is the business doing? Revenue grew 10 % over the last 12 months, and the operating margin of 22 % is above its 2014-2025 average of 20 %.
- Does it underwrite with discipline and build book value? Book value per share grew 12 % a year from 2020 to 2025, above the 8 % the sector treats as healthy.
- How strong is the balance sheet? Debt to equity is 1.47 over the last 12 months, far above the 0.3 the sector considers prudent.
- What to expect from the next earnings? Analysts expect EPS of $2.21 in the report due February 4, 2027, after 8 beats in the last 8 quarters.
Is Marsh & McLennan Companies expensive or cheap?
Marsh & McLennan Companies trades at 5.7× book value over the last 12 months. Its ROE of 26.5 % is high for an insurer. Even so, the insurance yardstick justifies only 2.0× book at that level of return, and 2.5× at most, so the stock sits far above that range. The P/E tells a gentler story. At 22.8× over the last 12 months, it is 20 % below its ten-year median of 28.3×, and the stock has traded at a lower P/E only 14 % of the time in the last decade. Against the sector median of 13.4×, though, it carries a 71 % premium. The shares are 8 % below their 52-week high of $203.85.
How is the business doing?
Revenue rose 10 % over the last 12 months, but EPS grew only 3 %, so less of the extra sales reached the bottom line. Margins remain strong. The operating margin is 22 % over the last 12 months, above the 2014-2025 average of 20 % but slightly below the 23 % of fiscal 2025. The net margin is 14 % and ROE is 26.5 % over the same period. Profitability has improved over the decade, and the business is now growing sales faster than earnings. If that gap persists, it will start to weigh on returns, so it is worth checking in the coming reports.
Does it underwrite with discipline and build book value?
Insurers make money in two ways: by underwriting well and by investing the float, the model Buffett used to build Berkshire. That is why the sector is judged on sustained margins and on growth in book value rather than on sales alone. Marsh & McLennan Companies clears both bars. Its average operating margin over five fiscal years (2021-2025) is 23 %, against a healthy threshold of 10 %. Book value per share grew 12 % a year from fiscal 2020 to 2025, above the 8 % benchmark. It has also raised its dividend for 11 straight years, just past the 10-year mark the sector uses to define aristocrats.
How strong is the balance sheet?
Debt to equity stands at 1.47 over the last 12 months, almost five times the 0.3 ceiling the insurance yardstick treats as prudent. It is the one sector test the company clearly fails. Shareholder returns look more measured. The dividend yields 2.1 % over the last 12 months, the payout was 41 % of fiscal 2025 earnings, and the dividend per share has risen for 11 consecutive fiscal years through 2025. Paying out less than half of earnings leaves room for further increases, but the leverage means the balance sheet has less slack than the sector norm.
What to expect from the next earnings?
On October 15, 2026, Marsh & McLennan Companies reported EPS of $2.03 against $1.97 expected, a 3 % beat and its eighth in the last eight quarters. The next report is due on February 4, 2027, and analysts are looking for EPS of $2.21. The 2026 EPS consensus of $10.45 has not moved in the last 30 days, and neither has the revenue estimate, so expectations are holding steady rather than rising. Of the 34 analysts covering the company, 22 rate it hold, 10 buy and 1 sell. That is a cautious stance for a company with such a consistent record of beats.
How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.
Investor methods verdict
Would Buffett approve Marsh & McLennan today?
The Buffett Method would wait for a better price for Marsh & McLennan: it yields 5.2% before tax; it asks for 10%. Business quality: 100 out of 100 (price not included). Kaplio assessment with data from the week of November 2, 2026; not investment advice.
Would Peter Lynch approve Marsh & McLennan today?
The Lynch Method would wait for a better price for Marsh & McLennan: P/E 24.0 with 16% growth; it asks that the P/E not exceed growth. Business quality: 89 out of 100 (price not included). Lynch classifies it as a stalwart. Kaplio assessment with data from the week of November 2, 2026; not investment advice.
Profitability
| Return on Equity | 27.15% |
| Return on Invested Capital | 11.78% |
| Return on Assets | 6.76% |
| Gross Margin | 42.77% |
| Operating Margin | 21.39% |
| Net Margin | 14.20% |
Financial Health
| Debt / Equity | 1.52 |
| Current Ratio | 1.09 |
| Piotroski F-Score | 7 |
| Altman Z-Score | 2.76 |
Price Performance
| 1 month | +17.97% |
| 3 months | +4.79% |
| Year-to-date | +8.14% |
| 1 year | +12.61% |
| 3 years | +3.45% |
| 5 years | +23.37% |
| 10 years | +213.96% |
Dividend History
Paid in the last 12 months: $3.78 per share in 4 payments.
| Date | Amount |
|---|---|
| October 1, 2026 | $0.99 |
| July 23, 2026 | $0.99 |
| April 9, 2026 | $0.90 |
| January 29, 2026 | $0.90 |
| October 2, 2025 | $0.90 |
| July 24, 2025 | $0.90 |
| April 3, 2025 | $0.815 |
| January 30, 2025 | $0.815 |
| October 4, 2024 | $0.815 |
| July 25, 2024 | $0.815 |
Amounts adjusted for stock splits.
Related companies: WTW · AON · AJG · BRO · RYAN
Explore sector: Financial Services · Insurance - Brokers
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