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Willis Towers Watson (Willis Towers Watson) Intrinsic Value: Projected FCF : $201.51 (As of Apr. 24, 2024)


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What is Willis Towers Watson Intrinsic Value: Projected FCF?

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2024-04-24), Willis Towers Watson's Intrinsic Value: Projected FCF is $201.51. The stock price of Willis Towers Watson is $264.48. Therefore, Willis Towers Watson's Price-to-Intrinsic-Value-Projected-FCF of today is 1.3.

The historical rank and industry rank for Willis Towers Watson's Intrinsic Value: Projected FCF or its related term are showing as below:

WTW' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 1.2   Med: 1.55   Max: 1.9
Current: 1.31

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Willis Towers Watson was 1.90. The lowest was 1.20. And the median was 1.55.

WTW's Price-to-Projected-FCF is ranked worse than
78.83% of 392 companies
in the Insurance industry
Industry Median: 0.66 vs WTW: 1.31

Willis Towers Watson Intrinsic Value: Projected FCF Historical Data

The historical data trend for Willis Towers Watson's Intrinsic Value: Projected FCF 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 Intrinsic Value: Projected FCF Chart

Willis Towers Watson Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 106.39 132.06 194.32 189.72 201.51

Willis Towers Watson Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Intrinsic Value: Projected FCF 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 189.72 185.45 190.44 187.92 201.51

Competitive Comparison of Willis Towers Watson's Intrinsic Value: Projected FCF

For the Insurance Brokers subindustry, Willis Towers Watson's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF 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 Price-to-Projected-FCF Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Willis Towers Watson's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Willis Towers Watson's Price-to-Projected-FCF falls into.



Willis Towers Watson Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get Willis Towers Watson's Free Cash Flow(6 year avg) = $1,123.68.

Willis Towers Watson's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Dec23)*0.8)/Shares Outstanding (Diluted Average)
=(11.693231243548*1123.68+9520*0.8)/103.000
=201.51

* 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  (NAS:WTW) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

Willis Towers Watson's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=264.48/201.50922411408
=1.31

* 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 Intrinsic Value: Projected FCF Related Terms

Thank you for viewing the detailed overview of Willis Towers Watson's Intrinsic Value: Projected FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Willis Towers Watson (Willis Towers Watson) 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.
Executives
Pamela Thomson-hall officer: Head of International 51 LIME STREET, LONDON X0 EC3M 7DQ
Anne Pullum officer: Head of Strategy and CAO C/O WILLIS TOWERS WATSON, 200 LIBERTY ST, 7TH FLOOR, NEW YORK NY 10281
Julie Jarecke Gebauer officer: Head of Human Capital&Benefits JUPITER SATURN HOLDING CO, 875 THIRD AVENUE, NEW YORK NY 10022
Fredric J Tomczyk director TORONTO DOMINION CENTRE, PO BOX 1, TORONTO A6 M5K IA2
Stephen M. Chipman director 3101 DREXEL DRIVE, DALLAS TX 75205
Jacqueline Hunt director 53 SOUTH GREEN, MATTISHALL, NORFOLK X0 N220 3JY
Anne Donovan Bodnar officer: Head of Human Resources 901 N. GLEBE ROAD, ARLINGTON VA 22203
Gene H Wickes officer: Head of Exchange Solutions 901 N GLEBE ROAD, ARLINGTON VA 22203
Brendan R Oneill director C/O IMPERIAL CHEMICAL INDUSTRIES PLC, 20 MANCHESTER SQUARE, LONDON X0 W1U 3AN
Paul C Reilly director 880 CARILLON PARKWAY, ST. PETERSBURG FL 33716
Alexis Faber officer: Chief Operating Officer 3340 PLAYERS CLUB PARKWAY, SUITE 200, MEMPHIS TN 38125
Andrew Jay Krasner officer: Chief Financial Officer 1450 BRICKELL AVENUE, SUITE 1600, MIAMI FL 33131
Fumbi F. Chima director 44 THORNBURY CT., 36-38 CHEPSTOW VILLAS, LONDON X0 WII 2RE
Michelle R Swanback director 7001 EAST BELLEVIEW AVENUE, DENVER CO 80237
Inga K Beale director C/O CRAWFORD & COMPANY, 5335 TRIANGLE PARKWAY, PEACHTREE CORNERS GA 30092

Willis Towers Watson (Willis Towers Watson) Headlines