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Willis Towers Watson (LTS:0Y4Q) PB Ratio : 4.17 (As of Dec. 12, 2024)


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What is Willis Towers Watson PB Ratio?

The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. As of today (2024-12-12), Willis Towers Watson's share price is $309.6001. Willis Towers Watson's Book Value per Share for the quarter that ended in Sep. 2024 was $74.27. Hence, Willis Towers Watson's PB Ratio of today is 4.17.

Warning Sign:

Willis Towers Watson PLC stock PB Ratio (=4.17) is close to 10-year high of 4.43

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

LTS:0Y4Q' s PB Ratio Range Over the Past 10 Years
Min: 1.41   Med: 2.45   Max: 4.43
Current: 4.17

During the past 13 years, Willis Towers Watson's highest PB Ratio was 4.43. The lowest was 1.41. And the median was 2.45.

LTS:0Y4Q's PB Ratio is ranked worse than
88.13% of 480 companies
in the Insurance industry
Industry Median: 1.29 vs LTS:0Y4Q: 4.17

During the past 12 months, Willis Towers Watson's average Book Value Per Share Growth Rate was -18.40% per year. During the past 3 years, the average Book Value Per Share Growth Rate was 3.40% per year. During the past 5 years, the average Book Value Per Share Growth Rate was 5.10% per year. During the past 10 years, the average Book Value Per Share Growth Rate was 13.30% per year.

During the past 13 years, the highest 3-Year average Book Value Per Share Growth Rate of Willis Towers Watson was 72.60% per year. The lowest was -8.80% per year. And the median was 9.00% per year.

Back to Basics: PB Ratio


Willis Towers Watson PB Ratio Historical Data

The historical data trend for Willis Towers Watson's PB 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 PB Ratio Chart

Willis Towers Watson Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.53 2.50 2.18 2.61 2.59

Willis Towers Watson Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
PB 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 2.33 2.59 2.97 2.86 3.94

Competitive Comparison of Willis Towers Watson's PB Ratio

For the Insurance Brokers subindustry, Willis Towers Watson's PB Ratio, along with its competitors' market caps and PB 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 PB Ratio Distribution in the Insurance Industry

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

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



Willis Towers Watson PB Ratio Calculation

The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. It is a ratio widely used to value stocks.

Willis Towers Watson's PB Ratio for today is calculated as follows:

PB Ratio=Share Price/Book Value per Share (Q: Sep. 2024)
=309.6001/74.273
=4.17

* 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.

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

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


Willis Towers Watson  (LTS:0Y4Q) PB Ratio Explanation

Unlike valuation ratios relative to the earning power such as PE Ratio, PE Ratio without NRI, PS Ratio, Price-to-Operating-Cash-Flow , or Price-to-Free-Cash-Flow, the PB Ratio measures the valuation of the stock relative to the underlying asset of the company.

The PB 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 PB Ratio does not work well for these companies. Some companies even have negative equity, so the PB Ratio cannot be applied to them.


Willis Towers Watson PB Ratio Related Terms

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


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 48,000 employees.

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