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 17.19 is considered Undervalued compared with the five-year average of 16.65. The fair price of Willis Towers Watson PLC (WTW) is between 395.49 to 442.63 according to relative valuation methord. Compared to the current price of 316.53 USD , Willis Towers Watson PLC is Undervalued By 19.97%.
Relative Value
Fair Zone
395.49-442.63
Current Price：316.53
19.97%
Undervalued
17.38
PE
1Y
3Y
5Y
Trailing
Forward
12.41
EV/EBITDA
Willis Towers Watson PLC. (WTW) has a current EV/EBITDA of 12.41. The 5-year average EV/EBITDA is 12.37. The thresholds are as follows: Strongly Undervalued below 10.30, Undervalued between 10.30 and 11.33, Fairly Valued between 13.40 and 11.33, Overvalued between 13.40 and 14.43, and Strongly Overvalued above 14.43. The current Forward EV/EBITDA of 12.41 falls within the Historic Trend Line -Fairly Valued range.
13.58
EV/EBIT
Willis Towers Watson PLC. (WTW) has a current EV/EBIT of 13.58. The 5-year average EV/EBIT is 14.84. The thresholds are as follows: Strongly Undervalued below 11.59, Undervalued between 11.59 and 13.22, Fairly Valued between 16.47 and 13.22, Overvalued between 16.47 and 18.09, and Strongly Overvalued above 18.09. The current Forward EV/EBIT of 13.58 falls within the Historic Trend Line -Fairly Valued range.
3.02
PS
Willis Towers Watson PLC. (WTW) has a current PS of 3.02. The 5-year average PS is 2.87. The thresholds are as follows: Strongly Undervalued below 2.24, Undervalued between 2.24 and 2.56, Fairly Valued between 3.19 and 2.56, Overvalued between 3.19 and 3.51, and Strongly Overvalued above 3.51. The current Forward PS of 3.02 falls within the Historic Trend Line -Fairly Valued range.
13.92
P/OCF
Willis Towers Watson PLC. (WTW) has a current P/OCF of 13.92. The 5-year average P/OCF is 16.01. The thresholds are as follows: Strongly Undervalued below 10.62, Undervalued between 10.62 and 13.31, Fairly Valued between 18.71 and 13.31, Overvalued between 18.71 and 21.41, and Strongly Overvalued above 21.41. The current Forward P/OCF of 13.92 falls within the Historic Trend Line -Fairly Valued range.
16.04
P/FCF
Willis Towers Watson PLC. (WTW) has a current P/FCF of 16.04. The 5-year average P/FCF is 18.78. The thresholds are as follows: Strongly Undervalued below 11.92, Undervalued between 11.92 and 15.35, Fairly Valued between 22.21 and 15.35, Overvalued between 22.21 and 25.64, and Strongly Overvalued above 25.64. The current Forward P/FCF of 16.04 falls within the Historic Trend Line -Fairly Valued range.
Willis Towers Watson PLC (WTW) has a current Price-to-Book (P/B) ratio of 3.93. Compared to its 3-year average P/B ratio of 3.16 , the current P/B ratio is approximately 24.30% higher. Relative to its 5-year average P/B ratio of 2.87, the current P/B ratio is about 37.16% 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 3.91%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 4.79% , the current FCF yield is about -100.00% lower.
3.97
P/B
Median3y
3.16
Median5y
2.87
4.92
FCF Yield
Median3y
3.91
Median5y
4.79
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 -0.04%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of WTW increased by 2.16% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 6.81 to 15.01.
The secondary factor is the Revenue Growth, contributed -0.04%to the performance.
Overall, the performance of WTW in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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