WTW Valuation

Willis Towers Watson PLC

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339.385

+0.535(0.158%)1D

Overview
Forecast
Valuation
Earnings

WTW Relative Valuation

WTW's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, WTW is overvalued; if below, it's undervalued.

Historical Valuation

Willis Towers Watson PLC (WTW) is now in the Undervalued zone, suggesting that its current forward PE ratio of 18.91 is considered Undervalued compared with the five-year average of 16.62. The fair price of Willis Towers Watson PLC (WTW) is between 423.85 to 469.42 according to relative valuation methord. Compared to the current price of 338.85 USD , Willis Towers Watson PLC is Undervalued By 20.05%.

Relative Value

Fair Zone

423.85-469.42

Current Price：338.85

20.05%

Undervalued

18.91

Trailing

Forward

13.55

EV/EBITDA

Willis Towers Watson PLC. (WTW) has a current EV/EBITDA of 13.55. The 5-year average EV/EBITDA is 12.35. The thresholds are as follows: Strongly Undervalued below 10.29, Undervalued between 10.29 and 11.32, Fairly Valued between 13.38 and 11.32, Overvalued between 13.38 and 14.41, and Strongly Overvalued above 14.41. The current Forward EV/EBITDA of 13.55 falls within the Overvalued range.

14.94

EV/EBIT

Willis Towers Watson PLC. (WTW) has a current EV/EBIT of 14.94. The 5-year average EV/EBIT is 14.94. The thresholds are as follows: Strongly Undervalued below 11.62, Undervalued between 11.62 and 13.28, Fairly Valued between 16.60 and 13.28, Overvalued between 16.60 and 18.27, and Strongly Overvalued above 18.27. The current Forward EV/EBIT of 14.94 falls within the Historic Trend Line -Fairly Valued range.

3.32

Willis Towers Watson PLC. (WTW) has a current PS of 3.32. The 5-year average PS is 2.86. The thresholds are as follows: Strongly Undervalued below 2.23, Undervalued between 2.23 and 2.55, Fairly Valued between 3.17 and 2.55, Overvalued between 3.17 and 3.48, and Strongly Overvalued above 3.48. The current Forward PS of 3.32 falls within the Overvalued range.

15.10

P/OCF

Willis Towers Watson PLC. (WTW) has a current P/OCF of 15.10. The 5-year average P/OCF is 15.77. The thresholds are as follows: Strongly Undervalued below 5.78, Undervalued between 5.78 and 10.77, Fairly Valued between 20.76 and 10.77, Overvalued between 20.76 and 25.76, and Strongly Overvalued above 25.76. The current Forward P/OCF of 15.10 falls within the Historic Trend Line -Fairly Valued range.

16.50

P/FCF

Willis Towers Watson PLC. (WTW) has a current P/FCF of 16.50. The 5-year average P/FCF is 18.60. The thresholds are as follows: Strongly Undervalued below 8.99, Undervalued between 8.99 and 13.80, Fairly Valued between 23.41 and 13.80, Overvalued between 23.41 and 28.22, and Strongly Overvalued above 28.22. The current Forward P/FCF of 16.50 falls within the Historic Trend Line -Fairly Valued range.

Willis Towers Watson PLC (WTW) has a current Price-to-Book (P/B) ratio of 4.09. Compared to its 3-year average P/B ratio of 3.05 , the current P/B ratio is approximately 34.17% higher. Relative to its 5-year average P/B ratio of 2.80, the current P/B ratio is about 46.10% higher. Willis Towers Watson PLC (WTW) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.77%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 4.82% , the current FCF yield is about -100.00% lower.

4.09

P/B

Median3y

3.05

Median5y

2.80

3.92

FCF Yield

Median3y

3.77

Median5y

4.82

Competitors Valuation Multiple

The average P/S ratio for WTW's competitors is , providing a benchmark for relative valuation. Willis Towers Watson PLC Corp (WTW) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of -0.18%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

WTW.O

Willis Towers Watson PLC

Ryan Specialty Holdings Inc

Goosehead Insurance Inc

Performance Decomposition

Market capitalization of WTW increased by 15.39% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 6.27 to 14.68.

The secondary factor is the Revenue Growth, contributed -0.18%to the performance.

Overall, the performance of WTW in the past 1 year is driven by Margin Expansion. Which is more sustainable.

-0.18%

2.27B → 2.26B

Revenue Growth

134.13%

6.27 → 14.68

Margin Expansion

-118.56%

-1.38K → 255.51

P/E Change

15.39%