Using the industry peer median P/E multiple (trailing + forward), Marsh & McLennan Companies, Inc. (MRSH) has a fair value of $152.82 based on 8 comparable companies in the Insurance - Brokers industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Marsh & McLennan Companies, Inc.MRSH | 85,601 | 20.7x | 20.1x |
| Chubb LimitedCB | 126,579 | 12.6x | 14.7x |
| The Progressive CorporationPGR | 119,537 | 10.6x | 15.1x |
| Aon plcAON | 69,600 | 19.0x | 21.0x |
| Arthur J. Gallagher & Co.AJG | 54,336 | 36.8x | 21.1x |
| Willis Towers Watson Public Limited CompanyWTW | 27,487 | 17.7x | 17.2x |
| Northern Trust CorporationNTRS | 25,646 | 15.8x | 15.9x |
| Brown & Brown, Inc.BRO | 22,237 | 20.6x | 17.3x |
| Erie Indemnity CompanyERIE | 11,286 | 23.0x | 39.9x |
| Industry Median | 18.3x | 17.3x | |
| (*) Profit after tax | 4,160 | 4,259 | |
| Equity Value | 76,296 | 73,470 | |
| (/) Outstanding shares | 490 | 490 | |
| Fair Price | $156 | $150 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.