Using the PEG framework with analyst consensus forward EPS growth of 15.5% plus 2.0% dividend yield, Marsh & McLennan Companies, Inc. has a fair value of $160.49 based on NTM EPS (FY2026) of $10.39. The current PEG ratio is 1.09.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 13.5% |
| Dividend Yield | +2.0% |
| Adjusted Growth (clamped 8–25%) | 15.5% |
| Fair P/E | 15.5x |
| NTM EPS (FY2026) | $10.39 |
| Fair Value | $160.49 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $8.43 | — | — |
| FY2026E | $10.39 | +23.2% | 13 |
| FY2027E | $11.34 | +9.2% | 13 |
| FY2028E | $12.31 | +8.6% | 6 |
3Y Forward EPS CAGR: 13.5%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $3.1B | $6.13 | — |
| FY2022 | $3.0B | $6.04 | -1.5% |
| FY2023 | $3.8B | $7.53 | +24.7% |
| FY2024 | $4.1B | $8.18 | +8.6% |
| FY2025 | $4.2B | $8.43 | +3.1% |
4Y Historical EPS CAGR: 8.3%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.