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

As of 27 June 2025, the valuation grade for Marsh & McLennan Cos., Inc. has moved from very expensive to expensive, indicating a slight improvement in its valuation outlook. The company is currently considered overvalued, with a P/E ratio of 29, a Price to Book Value of 8.96, and an EV to EBITDA of 17.47. In comparison, peers such as Aon Plc and Arthur J. Gallagher & Co. have P/E ratios of 27.77 and 50.47, respectively, suggesting that Marsh & McLennan's valuation is higher than some of its competitors.
Despite a strong ROCE of 50.87% and ROE of 30.99%, the elevated PEG ratio of 7.14 raises concerns about future growth relative to its price. Additionally, the company's recent stock performance has lagged behind the S&P 500, with a 1-year return of 2.86% compared to the index's 12.59%. This further supports the conclusion that Marsh & McLennan is currently overvalued in the market.