ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Willis Towers Watson's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 6.26%.
As of today (2026-06-24), Willis Towers Watson's WACC % is 5.41%. Willis Towers Watson's ROC % is 7.67% (calculated using TTM income statement data).
Willis Towers Watson generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Willis Towers Watson (STU:WTY) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Willis Towers Watson's WACC % is 5.41%. Willis Towers Watson's ROC % is 7.67% (calculated using TTM income statement data).
Willis Towers Watson generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
* 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.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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 (STU:WTY) has a ROC % of 6.26% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Willis Towers Watson and its competitors.
Is Willis Towers Watson's ROC % too high?
Willis Towers Watson's current ROC % is 6.26%. The Insurance industry median ROC % is 3.37. Willis Towers Watson's value of 6.26% is 86% above this industry median. Overall, Willis Towers Watson has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Willis Towers Watson's ROC % compare to BRO and ERIE?
Willis Towers Watson's ROC % of 6.26% can be compared against companies in the Insurance industry. The industry median ROC % is 3.37. Willis Towers Watson's value of 6.26% is 86% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for an Insurance company?
The median ROC % among Insurance companies is 3.37, based on 370 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Willis Towers Watson's current ROC % of 6.26% is 86% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Willis Towers Watson and its competitors. For the Insurance industry, the median ROC % is 3.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Willis Towers Watson's current ROC % is 6.26%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Willis Towers Watson stock overvalued right now?
Based on GuruFocus' analysis, Willis Towers Watson (STU:WTY) is currently considered Modestly Undervalued. The stock's GF Value™ is €281.73, compared to a current price of €226.30 — trading 19.7% below its estimated fair value. The current ROC % is 6.26% and 86% above the Insurance industry median of 3.37. Willis Towers Watson's overall GF Score™ is 83/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Willis Towers Watson (STU:WTY), the current ROC % is 6.26% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Willis Towers Watson (STU:WTY) Overvalued in 2026?
Based on GuruFocus' analysis, Willis Towers Watson stock appears to be undervalued.
The current stock price of €226.30 is trading 19.7% below its estimated GF Value™ of €281.73.
GuruFocus considers Willis Towers Watson to be Modestly Undervalued.
Key valuation signals for STU:WTY:
ROC %: 6.26%
GF Value™: €281.73 vs. price of €226.30 (19.7% below fair value)
No single metric tells the full story. See the STU:WTY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Willis Towers Watson PLC is an advisory, broking, and solutions company that provides data-driven, insight-led solutions in the areas of people, risk, and capital. The company's segments include Health, Wealth & Career (HWC) and Risk & Broking (R&B). The HWC segment provides an array of advice, broking, solutions and technology for employee benefit plans, institutional investors, compensation and career programs, and employee experience overall. It focuses on four key areas: Health, Wealth, Career and Benefits Delivery & Outsourcing. The R&B segment provides risk advice, insurance brokerage and consulting services to clients ranging from small businesses to multinational corporations. Its R&B segment includes two businesses: Corporate Risk & Broking and Insurance Consulting and Technology.
83GF Score
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