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Marsh & McLennan DCF Stock Analysis

Here’s my assumptions:

Risk Free Rate (10 Years Interest Rate Swap): 3.99%

Risk Premium (Taken from the Aswath Damodaran equity premium spreadsheet): 4.33%

Interest Rate Spread on The Risk free rate ( For the cost of debt calculation): 3.5%

Historical Data

Revenue growth in the last 10 years (CAGR): 7.37%

Earnings growth in the last 10 years (CAGR): 10.91%

Unlevered Free Cash Flow growth in the last 10 years (CAGR): 11.44%

Future Assumptions

End of Year FCF growth: 3%

Growth until end of 2026: 8%

Growth until end of 2034: 4%

Perpetual growth: 2.5%

Net Debt: 19.933B

Outstanding Stock Options Present Value Assumption: $0.405B

Restricted Stock Units + Performance Stock Units Present Value Assumption: $0.789B

Stock Valuation based on these assumptions: $470

Last update 05/16/2025

All the content in this newsletter should be taken as informational content only. THIS IS NOT FINANCIAL ADVICE! Do your own Due Diligence before investing or contact a professional financial advisor.

I don’t have a position in Marsh & McLennan (MMC) and I don’t plan to add a position in the coming days.