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Marsh & McLennan (Marsh & McLennan) Cyclically Adjusted Price-to-FCF : 37.70 (As of Apr. 27, 2024)


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What is Marsh & McLennan Cyclically Adjusted Price-to-FCF?

As of today (2024-04-27), Marsh & McLennan's current share price is $197.95. Marsh & McLennan's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was $5.25. Marsh & McLennan's Cyclically Adjusted Price-to-FCF for today is 37.70.

The historical rank and industry rank for Marsh & McLennan's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

MMC' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 27.35   Med: 38.86   Max: 51.53
Current: 37.74

During the past years, Marsh & McLennan's highest Cyclically Adjusted Price-to-FCF was 51.53. The lowest was 27.35. And the median was 38.86.

MMC's Cyclically Adjusted Price-to-FCF is ranked worse than
89.51% of 324 companies
in the Insurance industry
Industry Median: 11.03 vs MMC: 37.74

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Marsh & McLennan's adjusted free cash flow per share data for the three months ended in Mar. 2024 was $-1.746. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is $5.25 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Marsh & McLennan Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Marsh & McLennan's Cyclically Adjusted Price-to-FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Marsh & McLennan Cyclically Adjusted Price-to-FCF Chart

Marsh & McLennan Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 38.17 33.87 43.56 35.93 35.70

Marsh & McLennan Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted Price-to-FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 35.72 38.28 36.98 35.70 39.27

Competitive Comparison of Marsh & McLennan's Cyclically Adjusted Price-to-FCF

For the Insurance Brokers subindustry, Marsh & McLennan's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Marsh & McLennan's Cyclically Adjusted Price-to-FCF Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Marsh & McLennan's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Marsh & McLennan's Cyclically Adjusted Price-to-FCF falls into.



Marsh & McLennan Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Marsh & McLennan's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=197.95/5.25
=37.70

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Marsh & McLennan's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, Marsh & McLennan's adjusted Free Cash Flow per Share data for the three months ended in Mar. 2024 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=-1.746/129.4194*129.4194
=-1.746

Current CPI (Mar. 2024) = 129.4194.

Marsh & McLennan Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 0.962 100.560 1.238
201409 1.452 100.428 1.871
201412 1.627 99.070 2.125
201503 -1.127 99.621 -1.464
201506 1.017 100.684 1.307
201509 1.508 100.392 1.944
201512 1.571 99.792 2.037
201603 -1.202 100.470 -1.548
201606 1.423 101.688 1.811
201609 1.574 101.861 2.000
201612 1.566 101.863 1.990
201703 -0.883 102.862 -1.111
201706 1.269 103.349 1.589
201709 1.389 104.136 1.726
201712 1.300 104.011 1.618
201803 -0.821 105.290 -1.009
201806 1.367 106.317 1.664
201809 1.606 106.507 1.951
201812 2.002 105.998 2.444
201903 -0.683 107.251 -0.824
201906 0.838 108.070 1.004
201909 1.814 108.329 2.167
201912 1.826 108.420 2.180
202003 -1.482 108.902 -1.761
202006 2.219 108.767 2.640
202009 2.623 109.815 3.091
202012 2.550 109.897 3.003
202103 -0.928 111.754 -1.075
202106 2.097 114.631 2.368
202109 2.353 115.734 2.631
202112 2.542 117.630 2.797
202203 -1.619 121.301 -1.727
202206 2.302 125.017 2.383
202209 2.495 125.227 2.579
202212 2.787 125.222 2.880
202303 -1.806 127.348 -1.835
202306 2.772 128.729 2.787
202309 3.405 129.860 3.393
202312 3.333 129.419 3.333
202403 -1.746 129.419 -1.746

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Marsh & McLennan  (NYSE:MMC) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Marsh & McLennan Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Marsh & McLennan's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Marsh & McLennan (Marsh & McLennan) Business Description

Address
1166 Avenue of the Americas, New York, NY, USA, 10036-2774
Marsh McLennan is a professional services firm that provides advice and solutions in the areas of risk, strategy, and human capital. The company operates through two main segments: risk and insurance services and consulting. In risk and insurance services, the firm offers services via Marsh (an insurance broker) and Guy Carpenter (a risk and reinsurance specialist). The consulting division comprises Mercer (a provider of human resource services) and Oliver Wyman (a management and economic consultancy). About half of its revenue is generated outside the U.S.
Executives
Oscar Fanjul director C/O OMEGA CAPITAL, S.L., PASEO DE LA CASTELLANA, 28, MADRID U3 28046
John Jude Jones officer: Chief Marketing Officer 1166 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Dean Michael Klisura officer: President & CEO, Guy Carpenter 1166 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Steven A Mills director IBM CORPORATION, 294 ROUTE 100, SOMERS NY 10589
Mark C Mcgivney officer: Chief Financial Officer
Judith Hartmann director 1166 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Ray G Young director 77 WEST WACKER DR., SUITE 4600, CHICAGO IL 60601
Stacy Mills officer: Vice President and Controller C/O MARSH & MCLENNAN COMPANIES, INC., 1166 AVENENUE OF THE AMERICAS, NEW YORK NY 11102
Paul Beswick officer: SVP, Chief Information Officer 1166 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Martin South officer: President & CEO, Marsh 1166 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Martine Ferland officer: President and CEO, Mercer C/O MARSH & MCLENNAN COMPANIES, INC., 1166 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Katherine Brennan officer: SVP and General Counsel 1166 AVENUE OF THE AMERICAS, 1166 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Daniel S Glaser officer: Chairman & CEO, Marsh C/O MARSH & MCLENNAN COMPANIES, INC., 1166 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Hafize Gaye Erkan director 727 FIFTH AVENUE, NEW YORK NY 10022
Marc D Oken director C/O FALFURRIAS CAPITAL PARTNERS, 100 N. TRYON STREET, SUITE 5120, CHARLOTTE NC 28202