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Is this Large Market Cap Stock target price reasonable for Marsh & McLennan Companies, Inc. (NYSE:MMC)?

The company in question is, Marsh & McLennan Companies, Inc. (NYSE:MMC) currently with a stock price of 66.27 (0.55% today). The market cap for Marsh & McLennan Companies, Inc. is 34598.9, and is in the sector Financial, and Insurance Brokers industry. The target price for Marsh & McLennan Companies, Inc. is 69.63. Currently Marsh & McLennan Companies, Inc. is trading with a P/E of 21.18, and a forward P/E of 17.66. Average volume for Marsh & McLennan Companies, Inc. is 2160.76 and so far today it is 1202000.

Performance in the last year for Marsh & McLennan Companies, Inc. has been 27.62%. For EPS growth, Marsh & McLennan Companies, Inc. has seen a growth of 14.60%, and is looking to grow in the next year to 11.04%. More long term stats show that EPS growth has been 24.50% over the last five years and could be 11.16% for the next five years. Marsh & McLennan Companies, Inc. has seen sales growth quarter over quarter at 4.70%, with EPS growth quarter over quarter at 16.10%. The 20-day simple moving average is -0.96%, with the 200-day simple moving average coming to 8.37%.

Since the IPO date for Marsh & McLennan Companies, Inc. on the 12/30/1987, Marsh & McLennan Companies, Inc. has seen performance year to date to be 21.47%. With Marsh & McLennan Companies, Inc. trading at 66.27, the dividend yield is 2.05%, and the EPS is 3.13.

So could Marsh & McLennan Companies, Inc., be undervalued? Well as said before P/E is 21.18. The PEG is 1.9, P/S is 2.63 and the P/B is at 5.21. The P/cash is 35.52, with P/free cash flow at 31.68.

Marsh & McLennan Companies, Inc. ability to deal with debt shows that the current ratio is 1.4, and the quick ratio is 1.4. This is with long term debt/equity at 0.68, and total debt/equity at 0.72.

In terms of margins, Marsh & McLennan Companies, Inc. has a gross margin of 43.00%, an operating margin of 19.10% and a profit margin of 12.50%.Payout ratio for Marsh & McLennan Companies, Inc. is 39.20%. Return on assets come to 9.20% with return on investment coming to 16.00%.

Insider ownership for Marsh & McLennan Companies, Inc., is at 0.20% and institutional ownership comes to 87.50%. Outstanding shares are at 522.09. While shares float is 517.18. The float short is currently 0.79%, and short ratio is 1.89.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Peter Clarke

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