Is Marsh & McLennan Cos., Inc. overvalued or undervalued?

As of 27 March 2025, the valuation grade for Marsh & McLennan Cos., Inc. has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company appears to be overvalued based on its current metrics. Key ratios include a P/E ratio of 29, a Price to Book Value of 8.96, and an EV to EBITDA of 17.47, all of which are elevated compared to industry norms.
In comparison to its peers, Marsh & McLennan's P/E ratio of 29 is notably higher than Arthur J. Gallagher & Co. at 50.47 and Aon Plc at 27.77, while its EV to EBITDA ratio is also higher than Aon Plc's 14.74. This suggests that investors are paying a premium for Marsh & McLennan relative to its competitors. Despite a recent stock return of 1.14% over the past week, which outperformed the S&P 500's -0.13%, the overall valuation metrics indicate that the stock is not justified at its current price level.