One-glance verdict
Undervalued
$417.07 our estimate vs market $315.49
Wall Street consensus: $370.63 (-11.1% lower than our fair-value estimate)
24% below our estimate, below the bear case
Fundamentals snapshot
Willis Towers Watson Public Limited Company
WTW · NMS · Financial Services · Insurance Brokers
Current price
$315.49
52-week range
$240.61 - $351.51
Market cap
$29.30B
Balance sheet
Watch
8.68x Adequate
Net debt $5.44B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 4.1% last year.
- Reward Returns 19.8% on equity, ahead of 33% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Insider ownership is only 0.3% (peer median: 1.0%).
What this company does
Willis Towers Watson Public Limited Company
Willis Towers Watson acts as an expert advisor for other companies, helping them manage financial risks and employee programs. It primarily makes money by finding the right insurance policies for its clients, a service called broking, and by giving advice on things like retirement plans and healthcare benefits. This is an important service because most large companies need outside experts to handle the complex worlds of corporate insurance and employee compensation.
How the company got here
Willis Towers Watson, or WTW, was formed in 2016 through the merger of two large companies with long histories: Willis Group and Towers Watson. Willis Group's roots trace back to 1828 as a marine insurance broker at Lloyd's of London. Towers Watson was itself the result of a 2010 merger between Towers Perrin, a firm started in 1934 that specialized in pensions and employee benefits, and Watson Wyatt, an actuarial (a business that deals with the measurement and management of risk and uncertainty) firm founded in 1878. This combination brought together expertise in insurance brokerage with deep knowledge in managing employee benefits and financial risks. In 2022, the company rebranded to WTW to reflect its unified identity.
What it actually does
WTW is a global company that provides advice and solutions to other businesses in the areas of people, risk, and capital. Think of them as expert advisors that other companies hire to solve complex problems. For example, they help companies design employee benefit plans, like health insurance and retirement accounts, manage big, complicated risks, like cyberattacks or natural disasters, and make smart financial decisions. They don't sell a physical product you could buy in a store; instead, they sell their expertise and services to large corporations, insurance companies, and other institutions.
Health, Wealth & Career
This is the larger of WTW's two main business segments and focuses on the 'people' side of a business. It helps companies with everything related to their employees' well-being and financial security. This includes designing health insurance and retirement plans, advising on how much to pay employees, and managing pension funds (a type of retirement plan that provides a monthly income). Companies pay WTW for this advice and for help administering these complex programs, aiming to attract and retain talented employees while managing costs.
Risk & Broking
This segment helps companies deal with major risks and find insurance for them. As an insurance broker, WTW doesn't provide the insurance itself but acts as a middleman, connecting large corporate clients with insurance companies to get the right coverage for everything from property damage to cyber threats. They also provide consulting services to help clients identify and manage their risks before they become a problem. This part of the business earns money through fees and commissions (a percentage of the insurance premium) paid by the companies they help.
What management is betting on now
WTW's leadership is focused on growing by becoming more specialized in key industries and using technology to improve its services. They are making strategic acquisitions to expand their capabilities, such as buying a company that specializes in the fast-growing U.S. middle market and another that enhances their technology in the retirement savings space. The company is also investing in data and analytics to provide clients with better insights for managing risk and making decisions. By focusing on high-growth areas and integrating new technologies, WTW aims to provide more valuable solutions to its clients and strengthen its competitive position.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$419.00M
FY2024 Q4
$543.00M
FY2025 Q1
$-86.00M
FY2025 Q2
$303.00M
FY2025 Q3
$621.00M
FY2025 Q4
$708.00M
FY2026 Q1
$-65.00M
FY2026 Q2
$425.00M
Revenue
$2.47B
Net income
$229.00M
Diluted EPS
2.43
Operating cash flow
$484.00M
Free cash flow
$425.00M
Fetching…
Sources
Revenue
$2.41B
Net income
$297.00M
Diluted EPS
3.10
Operating cash flow
$-10.00M
Free cash flow
$-65.00M
Fetching…
Sources
Revenue
$2.94B
Net income
$735.00M
Diluted EPS
7.50
Operating cash flow
$771.00M
Free cash flow
$708.00M
Fetching…
Sources
Revenue
$2.29B
Net income
$304.00M
Diluted EPS
3.11
Operating cash flow
$678.00M
Free cash flow
$621.00M
Fetching…
Sources
Revenue
$2.26B
Net income
$331.00M
Diluted EPS
3.32
Operating cash flow
$361.00M
Free cash flow
$303.00M
Fetching…
Sources
Revenue
$2.22B
Net income
$235.00M
Diluted EPS
2.33
Operating cash flow
$-35.00M
Free cash flow
$-86.00M
Fetching…
Sources
Revenue
$3.04B
Net income
$1.25B
Diluted EPS
12.29
Operating cash flow
$599.00M
Free cash flow
$543.00M
Fetching…
Sources
Revenue
$2.29B
Net income
$-1.68B
Diluted EPS
-16.44
Operating cash flow
$482.00M
Free cash flow
$419.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $417.07 vs current price $315.49
Wall Street consensus is the average analyst price target: $370.63 (-11.1% lower than our fair-value estimate).
Our most-likely fair value is $417.07 a share — about 32.2% above today's price of $315.49, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $5.4B. Interest coverage 8.7x.
Net debt
$5.44B
Interest coverage
8.68x
Willis Towers Watson Public Limited Company's profit covers its interest bill about 8.7 times over. which is stronger than every peer shown here.
Watch
Worse cushion
Baseline
Better cushion
WTW
BASELINE
Willis Towers Watson Public Limited Company
Total debt $7.10B Interest coverage 8.68x This is the baseline the peer rows are being compared against.
Total debt $15.87B Interest coverage 5.78x -33% vs WTW Carries about 1.5x less debt cushion than WTW.
Total debt $22.33B Interest coverage 6.48x -25% vs WTW Carries about 1.3x less debt cushion than WTW.
Total debt $14.11B Interest coverage 4.00x -54% vs WTW Carries about 2.2x less debt cushion than WTW.
Total debt $8.07B Interest coverage 4.91x -43% vs WTW Carries about 1.8x less debt cushion than WTW.
Total debt $3.81B Interest coverage 2.32x -73% vs WTW Carries about 3.7x less debt cushion than WTW.
What you should know
The case for and against WTW
3 Rewards
1 Risk
Rewards
-
Revenue grew 4.1% last year.
-
Returns 19.8% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Insider ownership is only 0.3% (peer median: 1.0%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
19.52x
Forward P/E
13.76x
P/B
3.82x
P/S
2.90x
EV/EBITDA
12.37x
PEG ratio
1.27x
Profitability
How much profit each dollar creates
Gross margin
42.5%
Operating margin
17.6%
Net margin
15.5%
ROE
19.8%
ROA
5.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.91x
Current ratio
1.10x
Quick ratio
0.30x
Total debt
$7.10B
Total cash
$1.66B
Growth
How the business has been compounding
Revenue TTM
$10.10B
Revenue 5Y CAGR
2.3%
EPS TTM
16.16
EPS 5Y CAGR
21.9%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.92B
Free CF TTM
$1.55B
FCF margin
15.3%
Dividend
Shareholder payout
Yield
1.2%
Payout ratio
23.3%
Last ex-div date
2026-09-30