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Willis Group Holdings PLC (NYSE:WSH)
P/B Ratio
3.06 (As of Today)

As of today, Willis Group Holdings PLC's share price is $41.87. Willis Group Holdings PLC's Book Value per Share for the quarter that ended in 201406 was $13.67. Hence, Willis Group Holdings PLC's P/B Ratio of today is 3.06.

Good Sign:

Willis Group Holdings PLC stock P/B Ratio (=3.06) is close to 1-year low of 2.97

WSH' s 10-Year P/B Ratio Range
Min: 1.6   Max: 5.55
Current: 3.06

1.6
5.55

During the past 13 years, Willis Group Holdings PLC's highest P/B Ratio was 5.55. The lowest was 1.60. And the median was 3.54.

WSH's P/B Ratiois ranked lower than
55% of the 439 Companies
in the Global Insurance Brokers industry.

( Industry Median: 1.56 vs. WSH: 3.06 )

During the past 12 months, Willis Group Holdings PLC's average Book Value Per Share Growth Rate was 21.20% per year. During the past 3 years, the average Book Value Per Share Growth Rate was -6.20% per year. During the past 5 years, the average Book Value Per Share Growth Rate was -4.90% per year. During the past 10 years, the average Book Value Per Share Growth Rate was 5.00% per year.

During the past 13 years, the highest 3-Year average Book Value Per Share Growth Rate of Willis Group Holdings PLC was 63.60% per year. The lowest was -8.80% per year. And the median was 11.80% per year.


Definition

Willis Group Holdings PLC's P/B ratio for today is calculated as follows:

P/B Ratio=Share Price/Book Value per Share (Q: 201406)
=41.87/13.67
=3.06

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

It can also be calculated from the numbers for the whole company:

A closely related ratio is called Price-to-Tangible-Book Ratio. The difference between Price-to-Tangible-Book Ratio and Price-to-Book Ratio is that book value other than intangibles are used in the calculation.


Explanation

Unlike valuation ratios relative to the earning power such as P/E ratio, P/S ratio or Price-to-Free-Cash-Flow ratio, the Price-to-Book Ratio measures the valuation of the stock relative to the underlying asset of the company.

The Price-to-Book Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.


Be Aware

Some businesses have very light assets, such as software companies or insurance agencies. The Price-to-Book Ratio does not work well for these companies. Some companies even have negative equity, so the Price-to-Book Ratio cannot be applied to them.


Related Terms

Book Value per Share, Market Cap, Total Equity, Preferred Stock, P/E ratio, P/S ratio, Price-to-Free-Cash-Flow ratio, Price-to-Tangible-Book Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Willis Group Holdings PLC Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
pb 4.514.664.294.042.242.042.302.713.423.60

Willis Group Holdings PLC Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
pb 2.272.352.383.423.683.623.793.603.243.16
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