MRSH · NYQ · Financial Services
Marsh & McLennan Companies, Inc.
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Implied value per share
USD 184.31
Market price
USD 205.38
Implied upside
-10.3%
10-year forecast · Excess returns over book equity · Base case · Price 2026-11-02 · Accounts to 2025-12-31
NoteA financial, valued on excess returns over book equity.
Excess Returns
- Return on equity
- 33.3%
- Payout
- 37%
- Cost of equity
- 7.77%
- Return on equity by the final year
- 20.0%
| Line | FY26 | FY27 | FY28 | FY29 | FY30 | FY31 | FY32 | FY33 | FY34 | FY35 |
|---|---|---|---|---|---|---|---|---|---|---|
| Opening book equity | USD 15.1bn | USD 17.9bn | USD 20.8bn | USD 23.9bn | USD 27.0bn | USD 30.0bn | USD 32.9bn | USD 35.4bn | USD 37.5bn | USD 39.1bn |
| Return on equity | 32.0% | 30.6% | 29.3% | 28.0% | 26.7% | 25.3% | 24.0% | 22.7% | 21.3% | 20.0% |
| Excess return | USD 3.7bn | USD 4.1bn | USD 4.5bn | USD 4.8bn | USD 5.1bn | USD 5.3bn | USD 5.3bn | USD 5.3bn | USD 5.1bn | USD 4.8bn |
| Present value | USD 3.4bn | USD 3.5bn | USD 3.6bn | USD 3.6bn | USD 3.5bn | USD 3.4bn | USD 3.2bn | USD 2.9bn | USD 2.6bn | USD 2.3bn |
| Book equity | USD 15.1bn |
| Present value of excess returns | USD 31.9bn |
| Terminal, growing at 2.50% | USD 44.1bn |
| Equity value | USD 91.0bn |
| Per share | USD 184.31 |
Discount Rate
| Risk-free rate | 4.89% | US 10-year Treasury (^TNX), 2026-11-02 |
| Equity risk premium | 4.23% | Damodaran, January 2026 |
| Beta | 0.679 | Reported 0.521, pulled toward 1.0 (Blume) |
| Cost of equity | 7.77% | Risk-free + beta x equity risk premium |
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Yahoo Finance and RBA data. General information, not advice. Methodology.