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WTW Valuation

Willis Towers Watson PLC
$
313.110
+4.38(1.419%)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 18.23 is considered Undervalued compared with the five-year average of 16.61. The fair price of Willis Towers Watson PLC (WTW) is between 395.62 to 438.85 according to relative valuation methord. Compared to the current price of 313.11 USD , Willis Towers Watson PLC is Undervalued By 20.86%.
Relative Value
Fair Zone
395.62-438.85
Current Price:313.11
20.86%
Undervalued
18.23
PE
1Y
3Y
5Y
Trailing
Forward
13.17
EV/EBITDA
Willis Towers Watson PLC. (WTW) has a current EV/EBITDA of 13.17. The 5-year average EV/EBITDA is 12.35. The thresholds are as follows: Strongly Undervalued below 10.30, Undervalued between 10.30 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 13.17 falls within the Historic Trend Line -Fairly Valued range.
14.61
EV/EBIT
Willis Towers Watson PLC. (WTW) has a current EV/EBIT of 14.61. The 5-year average EV/EBIT is 15.03. The thresholds are as follows: Strongly Undervalued below 11.60, Undervalued between 11.60 and 13.32, Fairly Valued between 16.75 and 13.32, Overvalued between 16.75 and 18.47, and Strongly Overvalued above 18.47. The current Forward EV/EBIT of 14.61 falls within the Historic Trend Line -Fairly Valued range.
3.15
PS
Willis Towers Watson PLC. (WTW) has a current PS of 3.15. The 5-year average PS is 2.84. The thresholds are as follows: Strongly Undervalued below 2.23, Undervalued between 2.23 and 2.54, Fairly Valued between 3.15 and 2.54, Overvalued between 3.15 and 3.46, and Strongly Overvalued above 3.46. The current Forward PS of 3.15 falls within the Historic Trend Line -Fairly Valued range.
15.50
P/OCF
Willis Towers Watson PLC. (WTW) has a current P/OCF of 15.50. The 5-year average P/OCF is 13.68. The thresholds are as follows: Strongly Undervalued below -11.80, Undervalued between -11.80 and 0.94, Fairly Valued between 26.43 and 0.94, Overvalued between 26.43 and 39.17, and Strongly Overvalued above 39.17. The current Forward P/OCF of 15.50 falls within the Historic Trend Line -Fairly Valued range.
17.29
P/FCF
Willis Towers Watson PLC. (WTW) has a current P/FCF of 17.29. The 5-year average P/FCF is 16.98. The thresholds are as follows: Strongly Undervalued below -4.16, Undervalued between -4.16 and 6.41, Fairly Valued between 27.55 and 6.41, Overvalued between 27.55 and 38.12, and Strongly Overvalued above 38.12. The current Forward P/FCF of 17.29 falls within the Historic Trend Line -Fairly Valued range.
Willis Towers Watson PLC (WTW) has a current Price-to-Book (P/B) ratio of 3.82. Compared to its 3-year average P/B ratio of 2.96 , the current P/B ratio is approximately 29.14% higher. Relative to its 5-year average P/B ratio of 2.76, the current P/B ratio is about 38.57% higher. Willis Towers Watson PLC (WTW) has a Forward Free Cash Flow (FCF) yield of approximately 4.33%. Compared to its 3-year average FCF yield of 3.99%, the current FCF yield is approximately 8.59% lower. Relative to its 5-year average FCF yield of 4.83% , the current FCF yield is about -10.38% lower.
3.82
P/B
Median3y
2.96
Median5y
2.76
4.33
FCF Yield
Median3y
3.99
Median5y
4.83

Competitors Valuation Multiple

The average P/S ratio for WTW's competitors is 4.39, providing a benchmark for relative valuation. Willis Towers Watson PLC Corp (WTW) exhibits a P/S ratio of 3.15, which is -28.26% above the industry average. Given its robust revenue growth of -5.04%, this premium appears unsustainable.

Performance Decomposition

1Y
3Y
5Y
Market capitalization of WTW increased by 10.92% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 8.29 to 10.75.
The secondary factor is the Revenue Growth, contributed -5.04%to the performance.
Overall, the performance of WTW in the past 1 year is driven by Margin Expansion. Which is more sustainable.
-5.04%
2.34B → 2.22B
Revenue Growth
+
29.67%
8.29 → 10.75
Margin Expansion
+
-13.71%
-693.20 → -598.16
P/E Change
=
10.92%
282.28 → 313.11
Mkt Cap Growth

FAQ

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Is Willis Towers Watson PLC (WTW) currently overvalued or undervalued?

Willis Towers Watson PLC (WTW) is now in the Undervalued zone, suggesting that its current forward PE ratio of 18.23 is considered Undervalued compared with the five-year average of 16.61. The fair price of Willis Towers Watson PLC (WTW) is between 395.62 to 438.85 according to relative valuation methord. Compared to the current price of 313.11 USD , Willis Towers Watson PLC is Undervalued By 20.86% .
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What is Willis Towers Watson PLC (WTW) fair value?

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How does WTW's valuation metrics compare to the industry average?

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What is the current P/B ratio for Willis Towers Watson PLC (WTW) as of Jul 28 2025?

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What is the current FCF Yield for Willis Towers Watson PLC (WTW) as of Jul 28 2025?

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What is the current Forward P/E ratio for Willis Towers Watson PLC (WTW) as of Jul 28 2025?

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What is the current Forward P/S ratio for Willis Towers Watson PLC (WTW) as of Jul 28 2025?