Willis Towers Watson Public Limited Company

NasdaqGS:WTW Stock Report

Market Cap: US$31.7b

Willis Towers Watson Valuation

Is WTW undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of WTW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WTW ($314.63) is trading above our estimate of fair value ($176.29)

Significantly Below Fair Value: WTW is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for WTW?

Key metric: As WTW is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for WTW. This is calculated by dividing WTW's market cap by their current revenue.
What is WTW's PS Ratio?
PS Ratio3.2x
SalesUS$9.81b
Market CapUS$31.67b

Price to Sales Ratio vs Peers

How does WTW's PS Ratio compare to its peers?

The above table shows the PS ratio for WTW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average5.7x
BRO Brown & Brown
7x7.7%US$32.0b
RYAN Ryan Specialty Holdings
4x18.0%US$9.2b
AJG Arthur J. Gallagher
6.3x10.3%US$66.8b
AON Aon
5.6x8.1%US$83.5b
WTW Willis Towers Watson
3.2x1.0%US$31.7b

Price-To-Sales vs Peers: WTW is good value based on its Price-To-Sales Ratio (3.2x) compared to the peer average (5.7x).

Price to Sales Ratio vs Industry

How does WTW's PS Ratio compare vs other companies in the US Insurance Industry?

10 CompaniesPrice / SalesEstimated GrowthMarket Cap
GOCO GoHealth
0.2x7.5%US$120.55m
CCG Cheche Group
0.1x5.6%US$67.42m
AAME Atlantic American
0.2xn/aUS$33.45m
HUIZ Huize Holding
0.2x9.1%US$31.74m
WTW 3.2xIndustry Avg. 1.1xNo. of Companies19PS00.81.62.43.24+
10 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: WTW is expensive based on its Price-To-Sales Ratio (3.2x) compared to the US Insurance industry average (1.1x).

Price to Sales Ratio vs Fair Ratio

What is WTW's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

WTW PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio3.2x
Fair PS Ratio2.1x

Price-To-Sales vs Fair Ratio: WTW is expensive based on its Price-To-Sales Ratio (3.2x) compared to the estimated Fair Price-To-Sales Ratio (2.1x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst WTW forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$314.63
US$333.63
+6.0%
8.3%US$369.00US$262.00n/a19
Nov ’25US$299.30
US$324.79
+8.5%
8.0%US$369.00US$262.00n/a19
Oct ’25US$300.58
US$308.96
+2.8%
7.6%US$365.00US$253.00n/a19
Sep ’25US$292.11
US$309.07
+5.8%
6.3%US$335.00US$253.00n/a19
Aug ’25US$284.36
US$308.59
+8.5%
6.4%US$335.00US$253.00n/a19
Jul ’25US$259.42
US$299.17
+15.3%
6.2%US$329.00US$253.00n/a19
Jun ’25US$255.29
US$298.72
+17.0%
6.2%US$329.00US$253.00n/a19
May ’25US$254.70
US$297.35
+16.7%
6.6%US$329.00US$253.00n/a19
Apr ’25US$273.44
US$292.09
+6.8%
9.2%US$329.00US$236.00n/a19
Mar ’25US$271.18
US$290.35
+7.1%
8.8%US$320.00US$236.00n/a19
Feb ’25US$247.28
US$259.89
+5.1%
10.1%US$316.00US$215.00n/a18
Jan ’25US$241.20
US$248.65
+3.1%
8.0%US$284.00US$210.00n/a17
Dec ’24US$245.41
US$248.65
+1.3%
8.0%US$284.00US$210.00n/a17
Nov ’24US$235.42
US$248.65
+5.6%
8.0%US$284.00US$210.00US$299.3017
Oct ’24US$208.96
US$238.94
+14.3%
7.2%US$265.00US$205.00US$300.5817
Sep ’24US$207.87
US$239.24
+15.1%
7.5%US$270.00US$205.00US$292.1117
Aug ’24US$212.60
US$244.53
+15.0%
7.5%US$285.00US$218.00US$284.3617
Jul ’24US$235.50
US$257.82
+9.5%
6.9%US$285.00US$230.00US$259.4217
Jun ’24US$220.22
US$258.25
+17.3%
7.1%US$285.00US$230.00US$255.2916
May ’24US$233.24
US$262.18
+12.4%
7.5%US$302.00US$230.00US$254.7017
Apr ’24US$232.38
US$266.41
+14.6%
7.7%US$303.00US$231.00US$273.4417
Mar ’24US$232.39
US$265.65
+14.3%
8.1%US$303.00US$231.00US$271.1817
Feb ’24US$253.23
US$259.88
+2.6%
8.8%US$303.00US$228.00US$247.2817
Jan ’24US$244.58
US$242.25
-1.0%
10.3%US$302.00US$210.00US$241.2016
Dec ’23US$246.61
US$238.75
-3.2%
8.5%US$288.00US$210.00US$245.4116
Nov ’23US$221.20
US$237.94
+7.6%
7.9%US$288.00US$210.00US$235.4216

Analyst Forecast: Target price is less than 20% higher than the current share price.

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