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Willis Towers Watson (BSP:W1LT34) Cyclically Adjusted PS Ratio : 3.47 (As of Apr. 29, 2024)


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What is Willis Towers Watson Cyclically Adjusted PS Ratio?

As of today (2024-04-29), Willis Towers Watson's current share price is R$335.00. Willis Towers Watson's Cyclically Adjusted Revenue per Share for the quarter that ended in Mar. 2024 was R$96.55. Willis Towers Watson's Cyclically Adjusted PS Ratio for today is 3.47.

The historical rank and industry rank for Willis Towers Watson's Cyclically Adjusted PS Ratio or its related term are showing as below:

BSP:W1LT34' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 1.93   Med: 2.65   Max: 4.28
Current: 3.17

During the past years, Willis Towers Watson's highest Cyclically Adjusted PS Ratio was 4.28. The lowest was 1.93. And the median was 2.65.

BSP:W1LT34's Cyclically Adjusted PS Ratio is ranked worse than
87.62% of 404 companies
in the Insurance industry
Industry Median: 0.975 vs BSP:W1LT34: 3.17

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.

Willis Towers Watson's adjusted revenue per share data for the three months ended in Mar. 2024 was R$28.023. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is R$96.55 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Willis Towers Watson Cyclically Adjusted PS Ratio Historical Data

The historical data trend for Willis Towers Watson's Cyclically Adjusted PS Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Willis Towers Watson Cyclically Adjusted PS Ratio Chart

Willis Towers Watson Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.27 3.34 3.55 3.29 3.05

Willis Towers Watson Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted PS Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.09 3.05 2.68 3.05 3.47

Competitive Comparison of Willis Towers Watson's Cyclically Adjusted PS Ratio

For the Insurance Brokers subindustry, Willis Towers Watson's Cyclically Adjusted PS Ratio, along with its competitors' market caps and Cyclically Adjusted PS Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Willis Towers Watson's Cyclically Adjusted PS Ratio Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Willis Towers Watson's Cyclically Adjusted PS Ratio distribution charts can be found below:

* The bar in red indicates where Willis Towers Watson's Cyclically Adjusted PS Ratio falls into.



Willis Towers Watson Cyclically Adjusted PS Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PS Ratio takes the Revenue per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/S calculation. Because it considers this 10-year average, it's often referred to as the CAPS Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio.

Willis Towers Watson's Cyclically Adjusted PS Ratio for today is calculated as

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=335.00/96.55
=3.47

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Willis Towers Watson's Cyclically Adjusted Revenue per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, Willis Towers Watson's adjusted Revenue per Share data for the three months ended in Mar. 2024 was:

Adj_RevenuePerShare=Revenue per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=28.023/130.0000*130.0000
=28.023

Current CPI (Mar. 2024) = 130.0000.

Willis Towers Watson Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201406 7.607 99.800 9.909
201409 7.063 100.000 9.182
201412 9.604 99.900 12.498
201503 12.372 99.600 16.148
201506 10.395 100.100 13.500
201509 11.964 100.200 15.522
201512 13.695 100.400 17.733
201603 15.186 100.400 19.663
201606 11.915 101.000 15.336
201609 10.473 101.500 13.414
201612 11.794 102.200 15.002
201703 13.139 102.700 16.632
201706 11.744 103.500 14.751
201709 10.823 104.300 13.490
201712 12.870 105.000 15.934
201803 14.127 105.100 17.474
201806 14.106 105.900 17.316
201809 14.466 106.600 17.641
201812 17.446 107.100 21.176
201903 17.076 107.000 20.747
201906 15.186 107.900 18.296
201909 15.757 108.400 18.897
201912 15.952 108.500 19.113
202003 23.172 108.600 27.738
202006 21.083 108.800 25.191
202009 19.700 109.200 23.452
202012 26.406 109.400 31.378
202103 24.144 109.700 28.612
202106 20.220 111.400 23.596
202109 20.185 112.400 23.346
202112 30.361 114.700 34.411
202203 22.773 116.500 25.412
202206 22.884 120.500 24.688
202209 23.065 122.300 24.517
202212 32.748 125.300 33.976
202303 27.056 126.800 27.739
202306 24.484 129.400 24.598
202309 25.470 130.100 25.450
202312 34.655 130.000 34.655
202403 28.023 130.000 28.023

Add all the adjusted revenue per share together and divide 10 will get our Cyclically Adjusted Revenue per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Willis Towers Watson  (BSP:W1LT34) Cyclically Adjusted PS Ratio Explanation

Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PS Ratio should give similar results to regular PS Ratio.


Willis Towers Watson Cyclically Adjusted PS Ratio Related Terms

Thank you for viewing the detailed overview of Willis Towers Watson's Cyclically Adjusted PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Willis Towers Watson (BSP:W1LT34) Business Description

Traded in Other Exchanges
Address
C/o Willis Group Ltd, 51 Lime Street, London, GBR, EC3M 7DQ
In January 2016, Towers Watson and Willis Group merged to form Willis Towers Watson, a global advisory, insurance brokerage, and solutions company. The company operates in two business segments: health, wealth, and career (its consulting operations) and risk and brokering (its brokerage operations). It has about 47,000 employees.

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