Marsh McLennan (MRSH) stock analysis
Marsh McLennan (MRSH) clears 5 of this site's 8 mechanical value filters, 6 of 8 Buffett-style checks and 2 of 5 Lynch-style checks. A free-cash-flow DCF does not fit insurance companies, so no margin of safety is shown. It returns +3.5% to shareholders net of dilution. Figures are as of October 23, 2026, from SEC filings and market data refreshed weekly; this is educational analysis, not investment advice.
Data as of October 23, 2026. Refreshed weekly from SEC filings and market data.
What does Marsh McLennan do?
Marsh McLennan is an insurance broker and professional-services firm. It helps companies buy insurance and reinsurance, manage risk, and plan employee benefits, retirement and strategy.
Brands and businesses it owns
- Marsh
- Guy Carpenter
- Mercer
- Oliver Wyman
What stands out about Marsh McLennan?
- Misses 1 of the 8 value filters. It fails PEG Ratio < 1.5 (2.85); the other 5 pass and 2 were not evaluated. See every filter.
- Strongest against peers: return on equity. At 27% (peer median 20%) it ranks 4th of 23 among insurance stocks this site tracks. See the ranking.
- Weakest against peers: P/E ratio. At 23.2× (peer median 13.2×) it ranks 22nd of 23 among insurance stocks this site tracks. See the ranking.
- Priced at 23.2 times earnings. Price-to-book is 6.4 and return on equity 27.2%. See the value diligence check.
How has Marsh McLennan's share price moved?
The interactive price chart needs JavaScript.
Is Marsh McLennan undervalued? The value diligence check
Every value-investing signal this site computes for this stock, gathered in one place: the same real numbers from the tools below, not a new score.
- Margin of safety (DCF) n/a (Insurance)
- P/E vs. its own history 23.2x · near the cheap end Real range: 22.0x–28.4x over 5 years (net income per diluted share from each fiscal year's 10-K, paired with the real closing price at that fiscal year-end).
- Wall St. analyst rating Hold · 3.45/5 31 analysts this month: 3 strong buy, 9 buy, 18 hold, 1 sell, 0 strong sell (Finnhub).
- Altman Z″-Score (bankruptcy risk) n/a (Insurance)
- Earnings quality (is the profit real?) n/a (bank, insurer or REIT)
- Shareholder yield (cash back to owners) +3.5% net Latest fiscal year (2025): dividends 1.8% + buybacks 2.1% − stock comp 0.4%, as a share of today's market cap. Over 14 years its split-adjusted share count fell 10%. See Shareholder Yield Leaders.
- Capital needed to grow (See's test) n/a (bank, insurer, lender or REIT)
- PEG (growth at a reasonable price) 2.85 · Well above fair P/E 23.2× ÷ 8.1% a year of growth behind it. 329th lowest of 447 stocks with a usable PEG. Lynch's fair value is a PEG of 1; a very high PEG usually means almost no growth, a very low one a profit spike. See PEG Ratio Ranking.
- Compounder lenses (4) 1 of 4 · misses capital-light (n/a), real profit (n/a), price Capital-light growth: cannot be measured (bank, insurer, lender or REIT); Profit is real: cannot be measured (bank, insurer or REIT); Cash to owners: cleared; Fair price (PEG): not cleared (PEG 2.85, over 1.5). See Compounders at a Fair Price, which also lets you move the PEG bar.
- Munger's Inversion Check 0 flags
- Standing vs. sector peers 2 of 4 measures above the median Compared with the 22 other insurance stocks this site tracks: 1 in the top third, 1 in the bottom third.
- Dividend payout sustainability 0/6 · clean
How does Marsh McLennan compare with its peers?
2 of 4 measures sit above the median of the 22 other insurance stocks tracked here, 1 in the top third and 1 in the bottom third.
- P/E ratiolower is cheaper · peer median 13.2× 23.2× ✕22nd of 23
- Return on equityhigher is better · peer median 20% 27% ✓4th of 23
- Net marginhigher is better · peer median 14.2% 14.2% –12th of 23
- Dividend yieldamong dividend payers · peer median 1.75% 1.92% –10th of 23
Peers are the stocks this site tracks in the same sector group, not every listed competitor. The bar runs from the weakest peer (left) to the strongest (right); the tick is the middle. Measures that don't apply to a sector (cash-flow yield for banks, debt for financials) are left out.
What would Buffett & Lynch say?
Buffett's checklist is built around durable, profitable businesses bought at sensible prices, and MRSH doesn't clear enough of it yet. In its favor: MRSH is currently earning a strong return on shareholders' equity, and has kept that profitability up over five years, not just this year, converts sales into profit at healthy margins, has grown earnings per share at a solid clip over five years, earns many times its interest expense, so debt service isn't a worry, and trades at a reasonable multiple of owner earnings, his own term for the real cash a business could pay out. Where it comes up short: MRSH carries more debt relative to equity than he typically tolerates, and is trading above what a conservative discounted-cash-flow estimate says it's worth right now.
- ROE (TTM) > 11% ✓
- ROE (5yr avg) > 11% ✓
- Debt/Equity < 0.5 ✕
- Pretax margin > 15% ✓
- EPS growth (5yr) > 7% ✓
- Interest coverage > 5x ✓
- Trading below intrinsic value (DCF) ✕
- Price vs. owner earnings < 25x ✓
- Bonus: returning capital via buybacks FY2025
Lynch looked for growth stories that weren't overpriced for that growth, and MRSH falls short of his bar. In its favor: MRSH is growing at the modest, GDP-ish pace typical of a slow grower, and converts earnings into real cash at a reasonable price. Where it comes up short: MRSH doesn't pay much of a dividend, which is the main reason to own a slow grower in the first place, carries more debt than he liked to see, even allowing for the extra room a large, stable business gets, and is priced too rich for how little growth is actually left in the business.
- Dividend yield > 2.5% ✕
- EPS growth 0%-10% ✓
- Debt/Equity < 0.6 ✕
- P/E < 20 ✕
- Price/FCF < 25 ✓
Quantitative approximations of each investor's documented approach, not endorsed by either investor or their estates - commentary, not this site's actual ranking criteria. Buffett never published a numeric checklist: only 2 of his 8 checks here trace to his own documented concepts ("owner earnings," from his 1986 shareholder letter, and "price is what you pay, value is what you get," his case against fixed P/E/P/B ceilings) - the other 6 (ROE, debt, margins, growth, interest coverage) use commonly-cited thresholds that are not numbers he himself published. The 8 hard filters below (plus the Munger check and Graham margin of safety) are this site's real, mechanical screen and are computed completely independently of the checklists above.
Berkshire Hathaway's own filing
Which of the 8 value filters does Marsh McLennan pass?
- Market Cap > $25B $93.7B
- Trailing P/E < 25 23.19
- PEG Ratio < 1.5 2.85
- Price/Book < 8 6.39
- Price/Sales < 7 3.29
- EPS Growth YoY > -5% +11.6%
- vs 50-day MA (±12%) Not evaluated †
- vs 200-day MA (±12%) Not evaluated †
What is Marsh McLennan's margin of safety?
A standard free-cash-flow DCF doesn't fit how insurance companies report cash flow.
Where is Marsh McLennan in its 52-week range?
What is the short interest in Marsh McLennan?
6,348,883 shares short as of 2026-09-30 (FINRA settlement date). Reported twice a month, so this only changes roughly every two weeks, not daily.
What could go wrong with Marsh McLennan? Munger's inversion check
"Invert, always invert." Instead of reasons to buy, these are reasons to hesitate, not a verdict, and not everything worth knowing about a business.
- Margin of safety, even in the bull case n/a (Insurance)
- Short interest under 5% of float 1.3%
- Passes most of the 6 fundamental filters 5/6 passed
Doesn't cover circle of competence, management quality, or accounting concerns: those need judgment, not data.
How much have Marsh McLennan shareholders gained per year?
Earnings growth per share plus dividend.
An earnings-based proxy, not a stock-price total return - it doesn't capture multiple expansion/contraction or reinvested dividends. EPS from MRSH's own 10-K filings; dividend yield is the current trailing yield on today's price, from the same weekly fetch as the rest of this site.
What do Marsh McLennan's 10-year financials show?
From MRSH's own 10-K filings (SEC EDGAR): up to the last 10 fiscal years. Press any year's bars for the exact figures.
Frequently asked questions about Marsh McLennan
What kind of company is Marsh McLennan?
Marsh McLennan is an insurance broker and professional-services firm. It helps companies buy insurance and reinsurance, manage risk, and plan employee benefits, retirement and strategy. Brands and businesses it owns include Marsh, Guy Carpenter, Mercer and Oliver Wyman. This site groups it with Insurance stocks.
Why does Marsh McLennan have no margin of safety on this site?
This site's DCF values a company from its free cash flow, and that does not fit insurers, whose operating cash flow swings with premiums, claims and investment float rather than with what is left over for owners. So MRSH gets no margin of safety; judge it on the other checks on this page, such as its filters, shareholder yield and ranking against its peers. The method is in the Intrinsic Value Calculator.
How many of this site's 8 value filters does Marsh McLennan pass?
MRSH passes 5 of 8. It passes Market Cap > $25B ($93.7B), Trailing P/E < 25 (23.19), Price/Book < 8 (6.39), Price/Sales < 7 (3.29) and EPS Growth YoY > -5% (+11.6%). It misses PEG Ratio < 1.5 (2.85). vs 50-day MA (±12%) and vs 200-day MA (±12%) were not evaluated, because the moving-average checks only run on stocks that clear the fundamentals first. The 8-filter list shows every stock that passes all of them.
Does Marsh McLennan pass the Buffett-style and Lynch-style checklists?
On this site's Buffett-style checklist MRSH clears 6 of 8 checks and leans no; it misses Debt/Equity < 0.5 and Trading below intrinsic value (DCF). On the Lynch-style checklist it clears 2 of 5 and leans no, with Slow Grower / Cyclical as its Lynch category; it misses Dividend yield > 2.5%, Debt/Equity < 0.6 and P/E < 20. These are this site's own rules written in the style of each investor, not their personal views; the rules are in the Editorial Standards.
How much cash does Marsh McLennan return to shareholders?
MRSH's net shareholder yield is +3.5%: the cash it returns through dividends and buybacks, minus stock-based compensation, as a share of its market value. Latest fiscal year (2025): dividends 1.8% + buybacks 2.1% − stock comp 0.4%, as a share of today's market cap. Over 14 years its split-adjusted share count fell 10%. Its trailing dividend yield is 1.92%, paid out of 36% of its free cash flow; the dividend-sustainability check raises 0 of 6 flags. See Shareholder Yield Leaders and the Sustainable Dividend Screener.
How fast has Marsh McLennan grown its revenue and profit?
From fiscal 2016 to fiscal 2025, MRSH's revenue grew from $13.2 billion to $27.0 billion, 8.3% a year. Net income went from $1.8 billion to $4.2 billion, and its net profit margin from 13.4% to 15.4%. Earnings per share went from $3.37 to $8.42 on today's share count, 10.7% a year. All figures are from MRSH's own 10-K filings (SEC EDGAR) and are shown year by year in the 10-Year Financials section of the card above.
Where do these numbers come from?
- Financial statements: Marsh McLennan's 10-K annual report for the year ended Dec 31, 2025, filed Feb 9, 2026 (filing index). Every earlier year in the 10-year financials comes from the company's older 10-K filings, all listed on SEC EDGAR.
- Prices and market data: quotes, P/E and analyst ratings from Finnhub; daily price history and the 52-week range from Twelve Data, both refreshed weekly. Short interest comes from FINRA, reported twice a month.
- How to check a figure: click any number in the card above to see its exact source, and read the Editorial Standards for every rule behind the checks.
About this Marsh McLennan analysis
This page shows every value-investing check the site runs on Marsh McLennan (MRSH) in one place: the 8 mechanical filters, the Buffett and Lynch checklists, a margin of safety from a disclosed DCF, earnings quality, shareholder yield and how it ranks against its sector peers. The numbers come from SEC filings and public market data, refreshed weekly, and the same rules apply to every stock on the stock list. See Editorial Standards for the sources and the rules, or run your own filters in the stock screener.