An independent two-stage DCF analysis by a frontier AI model.
The current market price of 170.91 reflects specific expectations about Marsh & McLennan Companies's future growth and cash flow generation capabilities. Our DCF model evaluates the fundamental value of the business based on its ability to generate sustainable free cash flows over the next decade.
With an estimated intrinsic value of 273.02, the stock currently appears undervalued. Investors should weigh this valuation against the company's competitive moat, capital allocation strategy, and macroeconomic sensitivities before making investment decisions.
A 7.0% growth rate is estimated based on the company's historical free cash flow generation and near-term market expectations.
A 8.0% discount rate reflects the estimated weighted average cost of capital, accounting for the risk-free rate and company-specific risk premiums.
A 3.0% terminal growth rate is used, aligning with long-term macroeconomic GDP growth projections.
Intrinsic value per share under varying discount rate and terminal growth rate assumptions.
| WACC ↓ / Terminal → | 2.0% | 2.5% | 3.0% | 3.5% | 4.0% |
|---|---|---|---|---|---|
| 2.0% | $341.28 | $273.02 | $227.52 | $195.01 | $170.64 |
| 2.5% | $390.03 | $303.36 | $248.20 | $210.02 | $182.01 |
| 3.0% | $455.03 | $341.27 | $273.02 | $227.52 | $195.01 |
| 3.5% | $546.04 | $390.03 | $303.36 | $248.20 | $210.02 |
| 4.0% | $682.55 | $455.03 | $341.28 | $273.02 | $227.52 |
■ Undervalued vs current price ■ Overvalued vs current price
The model uses a 7.0% growth rate based on historical free cash flow growth and industry projections over the medium term.
A 8.0% discount rate (WACC) was selected to properly discount future cash flows back to present value, given the risk profile of the business.
No. A DCF model is highly sensitive to its inputs (growth rate, discount rate, terminal rate). It should be used as one tool among many in a comprehensive investment analysis.
Disclaimer: The numbers presented on this page are for educational and entertainment purposes only. They are the result of a deterministic mathematical model fed with assumptions generated by an Artificial Intelligence (Gemini 3.1). This does not constitute investment advice. Always conduct your own due diligence before investing in the stock market.