Willis Towers Valuation
| WTW Stock | USD 252.49 2.21 0.87% |
At this time, the company appears to be fairly valued. Willis Towers Watson maintains a prevalent Real Value of $248.45 per share. The last-minute price of the company is $252.49. Our model calculates the value of Willis Towers Watson from examining the company fundamentals such as Current Valuation of 30.88 B, profit margin of 0.11 %, and Return On Asset of 0.0402 as well as analyzing its technical indicators and probability of bankruptcy. In general, most investors encourage buying undervalued securities and disposing overvalued securities since, at some point, asset prices and their ongoing real values will grow together. Key fundamental drivers impacting Willis Towers' valuation include:
Price Book 2.7974 | Enterprise Value 30.9 B | Enterprise Value Ebitda 15.4274 | Price Sales 2.807 | Forward PE 16.0256 |
Fairly Valued
Today
Please note that Willis Towers' price fluctuation is very steady at this time. Calculation of the real value of Willis Towers Watson is based on 3 months time horizon. Increasing Willis Towers' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Willis Towers Watson is useful when determining the fair value of the Willis stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Willis Towers. Since Willis Towers is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Willis Stock. However, Willis Towers' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 252.49 | Real 248.45 | Target 238.75 | Hype 252.48 | Naive 252.98 |
The real value of Willis Stock, also known as its intrinsic value, is the underlying worth of Willis Towers Watson Company, which is reflected in its stock price. It is based on Willis Towers' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Willis Towers' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Willis Towers' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Willis Towers Watson helps investors to forecast how Willis stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Willis Towers more accurately as focusing exclusively on Willis Towers' fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Willis Towers' intrinsic value based on its ongoing forecasts of Willis Towers' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Willis Towers' closest peers. When choosing an evaluation method for Willis Towers Watson, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Willis Towers Investments |
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Willis Valuation Trend
Knowing Willis Towers' actual value is paramount for traders to make sound investment determinations. Willis Towers' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Willis Towers' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Willis Towers' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Willis Market Cap
Willis Towers Watson is rated fifth in market capitalization category among related companies. Market capitalization of Financials industry is at this time estimated at about 286.21 Billion. Willis Towers holds roughly 26.04 Billion in market capitalization claiming about 9% of equities under Financials industry.Willis Towers Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Willis Towers's current stock value. Our valuation model uses many indicators to compare Willis Towers value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Willis Towers competition to find correlations between indicators driving Willis Towers's intrinsic value. More Info.Willis Towers Watson is rated below average in price to earning category among related companies. It is rated below average in price to book category among related companies fabricating about 0.18 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Willis Towers Watson is roughly 5.47 . Price To Book Ratio is likely to climb to 3.76 in 2024. Comparative valuation analysis is a catch-all model that can be used if you cannot value Willis Towers by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Willis Towers' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Willis Towers' earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Willis Towers' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Willis Towers and how it compares across the competition.
About Willis Towers Valuation
The stock valuation mechanism determines the current worth of Willis Towers Watson on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Willis Towers Watson. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Willis Towers Watson based exclusively on its fundamental and basic technical indicators. By analyzing Willis Towers's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Willis Towers's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Willis Towers. We calculate exposure to Willis Towers's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Willis Towers's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 7.7 B | 8.1 B | |
| Pretax Profit Margin | 0.13 | 0.15 | |
| Operating Profit Margin | 0.19 | 0.19 | |
| Net Profit Margin | 0.11 | 0.08 | |
| Gross Profit Margin | 0.76 | 0.51 |
8 Steps to conduct Willis Towers' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Willis Towers' potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Willis Towers' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Willis Towers' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Willis Towers' revenue streams: Identify Willis Towers' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Willis Towers' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Willis Towers' growth potential: Evaluate Willis Towers' management, business model, and growth potential.
- Determine Willis Towers' financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Willis Towers' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of Willis Towers represents a small ownership stake in the entity. As a stockholder of Willis, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Willis Towers Dividends Analysis For Valuation
Dividend Yield is likely to climb to 0.02 in 2024, despite the fact that Dividends Paid is likely to grow to (334.4 M). . At this time, Willis Towers' Retained Earnings are fairly stable compared to the past year. Retained Earnings Total Equity is likely to climb to about 2.6 B in 2024, whereas Price Earnings Ratio is likely to drop 22.81 in 2024.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -352 M | -334.4 M | |
| Dividend Yield | 0.01 | 0.02 | |
| Dividend Payout Ratio | 0.33 | 0.31 | |
| Dividend Paid And Capex Coverage Ratio | 12.23 | 7.00 |
There are various types of dividends Willis Towers can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Willis shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Willis Towers Watson directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Willis pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Willis Towers by the value of the dividends paid out.
Willis Towers Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Willis Towers does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 106 M | |
| Quarterly Earnings Growth Y O Y | -0.027 | |
| Forward Price Earnings | 16.0256 |
Willis Towers Current Valuation Indicators
Valuation refers to the process of determining the present value of Willis Towers Watson and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Willis we look at many different elements of the entity such as Willis's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Willis Towers' valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Willis Towers' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Willis Towers, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Willis Towers' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Willis Towers' worth.When determining whether Willis Towers Watson is a strong investment it is important to analyze Willis Towers' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Willis Towers' future performance. For an informed investment choice regarding Willis Stock, refer to the following important reports: Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Willis Towers Watson. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in estimate. You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Complementary Tools for Willis Stock analysis
When running Willis Towers' price analysis, check to measure Willis Towers' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Willis Towers is operating at the current time. Most of Willis Towers' value examination focuses on studying past and present price action to predict the probability of Willis Towers' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Willis Towers' price. Additionally, you may evaluate how the addition of Willis Towers to your portfolios can decrease your overall portfolio volatility.
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Is Willis Towers' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Willis Towers. If investors know Willis will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Willis Towers listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.03) | Dividend Share 2.56 | Earnings Share 9.91 | Revenue Per Share 92.115 | Quarterly Revenue Growth 0.043 |
The market value of Willis Towers Watson is measured differently than its book value, which is the value of Willis that is recorded on the company's balance sheet. Investors also form their own opinion of Willis Towers' value that differs from its market value or its book value, called intrinsic value, which is Willis Towers' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Willis Towers' market value can be influenced by many factors that don't directly affect Willis Towers' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Willis Towers' value and its price as these two are different measures arrived at by different means. Investors typically determine if Willis Towers is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Willis Towers' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.