Marsh Mclennan Companies Stock Beta
MMC Stock | USD 200.95 0.76 0.38% |
Marsh McLennan Companies fundamentals help investors to digest information that contributes to Marsh McLennan's financial success or failures. It also enables traders to predict the movement of Marsh Stock. The fundamental analysis module provides a way to measure Marsh McLennan's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Marsh McLennan stock.
Marsh | Beta |
Marsh McLennan Companies Company Beta Analysis
Marsh McLennan's Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Current Marsh McLennan Beta | 0.9 |
Most of Marsh McLennan's fundamental indicators, such as Beta, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Marsh McLennan Companies is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Marsh Beta Driver Correlations
Understanding the fundamental principles of building solid financial models for Marsh McLennan is extremely important. It helps to project a fair market value of Marsh Stock properly, considering its historical fundamentals such as Beta. Since Marsh McLennan's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Marsh McLennan's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Marsh McLennan's interrelated accounts and indicators.
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In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
Competition |
In accordance with the recently published financial statements, Marsh McLennan Companies has a Beta of 0.896. This is 9.27% higher than that of the Insurance sector and about the same as Financials (which currently averages 0.9) industry. The beta for all United States stocks is notably lower than that of the firm.
Marsh Beta Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Marsh McLennan's direct or indirect competition against its Beta to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Marsh McLennan could also be used in its relative valuation, which is a method of valuing Marsh McLennan by comparing valuation metrics of similar companies.Marsh McLennan is currently under evaluation in beta category among related companies.
Marsh McLennan ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Marsh McLennan's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Marsh McLennan's managers, analysts, and investors.Environment Score | Governance Score | Social Score |
Marsh McLennan Institutional Holders
Institutional Holdings refers to the ownership stake in Marsh McLennan that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of Marsh McLennan's outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing Marsh McLennan's value.Shares | Goldman Sachs Group Inc | 2023-12-31 | 7.2 M | Mawer Investment Management Ltd | 2023-12-31 | 7.2 M | Bank Of America Corp | 2023-12-31 | 6.6 M | Morgan Stanley - Brokerage Accounts | 2023-12-31 | 6.1 M | Northern Trust Corp | 2023-12-31 | 5.7 M | Norges Bank | 2023-12-31 | 5.5 M | Nuveen Asset Management, Llc | 2023-12-31 | 4.6 M | Legal & General Group Plc | 2023-12-31 | 4.4 M | Parnassus Investments, Llc | 2023-12-31 | 4.3 M | Vanguard Group Inc | 2023-12-31 | 43.8 M | Blackrock Inc | 2023-12-31 | 41 M |
Marsh McLennan returns are very sensitive to returns on the market. As the market goes up or down, Marsh McLennan is expected to follow.
Marsh Fundamentals
Return On Equity | 0.33 | ||||
Return On Asset | 0.0928 | ||||
Profit Margin | 0.17 % | ||||
Operating Margin | 0.31 % | ||||
Current Valuation | 113.51 B | ||||
Shares Outstanding | 492.72 M | ||||
Shares Owned By Insiders | 0.07 % | ||||
Shares Owned By Institutions | 89.97 % | ||||
Number Of Shares Shorted | 3.7 M | ||||
Price To Earning | 38.97 X | ||||
Price To Book | 8.02 X | ||||
Price To Sales | 4.30 X | ||||
Revenue | 22.74 B | ||||
Gross Profit | 8.88 B | ||||
EBITDA | 5.28 B | ||||
Net Income | 3.8 B | ||||
Cash And Equivalents | 1.44 B | ||||
Cash Per Share | 1.62 X | ||||
Total Debt | 15.44 B | ||||
Debt To Equity | 1.36 % | ||||
Current Ratio | 1.04 X | ||||
Book Value Per Share | 25.21 X | ||||
Cash Flow From Operations | 4.26 B | ||||
Short Ratio | 2.42 X | ||||
Earnings Per Share | 7.89 X | ||||
Price To Earnings To Growth | 2.43 X | ||||
Target Price | 211.28 | ||||
Number Of Employees | 85 K | ||||
Beta | 0.9 | ||||
Market Capitalization | 99.39 B | ||||
Total Asset | 48.03 B | ||||
Retained Earnings | 22.76 B | ||||
Working Capital | 1.95 B | ||||
Current Asset | 3.66 B | ||||
Current Liabilities | 3.86 B | ||||
Annual Yield | 0.01 % | ||||
Five Year Return | 1.61 % | ||||
Net Asset | 48.03 B | ||||
Last Dividend Paid | 2.84 |
About Marsh McLennan Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Marsh McLennan Companies's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Marsh McLennan using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Marsh McLennan Companies based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
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When running Marsh McLennan's price analysis, check to measure Marsh McLennan's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Marsh McLennan is operating at the current time. Most of Marsh McLennan's value examination focuses on studying past and present price action to predict the probability of Marsh McLennan's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Marsh McLennan's price. Additionally, you may evaluate how the addition of Marsh McLennan to your portfolios can decrease your overall portfolio volatility.
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Is Marsh McLennan's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Marsh McLennan. If investors know Marsh will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Marsh McLennan listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.142 | Dividend Share 2.84 | Earnings Share 7.89 | Revenue Per Share 47.207 | Quarterly Revenue Growth 0.093 |
The market value of Marsh McLennan Companies is measured differently than its book value, which is the value of Marsh that is recorded on the company's balance sheet. Investors also form their own opinion of Marsh McLennan's value that differs from its market value or its book value, called intrinsic value, which is Marsh McLennan's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Marsh McLennan's market value can be influenced by many factors that don't directly affect Marsh McLennan's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Marsh McLennan's value and its price as these two are different measures arrived at by different means. Investors typically determine if Marsh McLennan is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Marsh McLennan's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.