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Marsh & McLennan (Marsh & McLennan) Cyclically Adjusted PS Ratio : 5.42 (As of May. 20, 2024)


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What is Marsh & McLennan Cyclically Adjusted PS Ratio?

As of today (2024-05-20), Marsh & McLennan's current share price is $209.16. Marsh & McLennan's Cyclically Adjusted Revenue per Share for the quarter that ended in Mar. 2024 was $38.60. Marsh & McLennan's Cyclically Adjusted PS Ratio for today is 5.42.

The historical rank and industry rank for Marsh & McLennan's Cyclically Adjusted PS Ratio or its related term are showing as below:

MMC' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 1.72   Med: 3.52   Max: 5.66
Current: 5.44

During the past years, Marsh & McLennan's highest Cyclically Adjusted PS Ratio was 5.66. The lowest was 1.72. And the median was 3.52.

MMC's Cyclically Adjusted PS Ratio is ranked worse than
93.6% of 406 companies
in the Insurance industry
Industry Median: 1.02 vs MMC: 5.44

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 PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.

Marsh & McLennan's adjusted revenue per share data for the three months ended in Mar. 2024 was $13.024. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is $38.60 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Marsh & McLennan Cyclically Adjusted PS Ratio Historical Data

The historical data trend for Marsh & McLennan's Cyclically Adjusted PS Ratio 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 PS Ratio Chart

Marsh & McLennan Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.22 4.20 5.57 4.79 5.07

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 PS Ratio 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 4.68 5.16 5.12 5.07 5.34

Competitive Comparison of Marsh & McLennan's Cyclically Adjusted PS Ratio

For the Insurance Brokers subindustry, Marsh & McLennan's Cyclically Adjusted PS Ratio, along with its competitors' market caps and Cyclically Adjusted PS Ratio 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 PS Ratio Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Marsh & McLennan's Cyclically Adjusted PS Ratio distribution charts can be found below:

* The bar in red indicates where Marsh & McLennan's Cyclically Adjusted PS Ratio falls into.



Marsh & McLennan Cyclically Adjusted PS Ratio Calculation

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

Marsh & McLennan's Cyclically Adjusted PS Ratio for today is calculated as

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=209.16/38.6
=5.42

* 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 Revenue per Share for the quarter that ended in Mar. 2024 is calculated as:

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

Adj_RevenuePerShare=Revenue per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=13.024/131.7762*131.7762
=13.024

Current CPI (Mar. 2024) = 131.7762.

Marsh & McLennan Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201406 5.935 100.560 7.777
201409 5.701 100.428 7.481
201412 5.902 99.070 7.850
201503 5.899 99.621 7.803
201506 5.961 100.684 7.802
201509 5.844 100.392 7.671
201512 6.370 99.792 8.412
201603 6.342 100.470 8.318
201606 6.430 101.688 8.333
201609 5.994 101.861 7.754
201612 6.457 101.863 8.353
201703 6.711 102.862 8.597
201706 6.721 103.349 8.570
201709 6.437 104.136 8.146
201712 7.141 104.011 9.047
201803 7.782 105.290 9.740
201806 7.293 106.317 9.039
201809 6.871 106.507 8.501
201812 7.307 105.998 9.084
201903 7.967 107.251 9.789
201906 8.494 108.070 10.357
201909 7.765 108.329 9.446
201912 8.344 108.420 10.141
202003 9.120 108.902 11.036
202006 8.198 108.767 9.932
202009 7.750 109.815 9.300
202012 8.575 109.897 10.282
202103 9.889 111.754 11.661
202106 9.780 114.631 11.243
202109 8.934 115.734 10.172
202112 10.014 117.630 11.218
202203 10.902 121.301 11.843
202206 10.630 125.017 11.205
202209 9.483 125.227 9.979
202212 10.004 125.222 10.528
202303 11.848 127.348 12.260
202306 11.776 128.729 12.055
202309 10.786 129.860 10.945
202312 11.130 129.419 11.333
202403 13.024 131.776 13.024

Add all the adjusted revenue per share together and divide 10 will get our Cyclically Adjusted Revenue 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 PS Ratio Explanation

Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue 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 PS Ratio should give similar results to regular PS Ratio.


Marsh & McLennan Cyclically Adjusted PS Ratio Related Terms

Thank you for viewing the detailed overview of Marsh & McLennan's Cyclically Adjusted PS Ratio 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

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