Willis Towers Watson (WTW) - 18.60% Below 52-Week High: Buy or Wait?

Stock Details

Willis Towers Watson PLC (WTW), a prominent company in the financial services sector within the insurance brokers industry, is based in USA and primarily trades on the NASDAQ.Currently, the stock is trading at $285.19. Over the past 52 weeks, it has ranged between $238.94 and $350.34. This places the current price at 81.4% of its 52-week high and 19.4% above its 52-week low. Recent trading volume was recorded at 13,822. The International Securities Identification Number (ISIN) for this stock is US96083A1016.

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

17.88

Near market average

Forward P/E

17.42

Earnings expected to grow

PEG Ratio

1.08

Reasonably valued

Price to Book

4.16

EV/EBITDA

37.71

EPS (TTM)

$16.14

Price to Sales

2.65

Beta

0.42

Less volatile than market

Q:How is WTW valued relative to its earnings and growth?

Willis Towers Watson PLC trades at a P/E ratio of 17.88, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 17.42 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.08 indicates reasonable value when growth is considered.

Q:What is WTW's risk profile compared to the market?

With a beta of 0.42, Willis Towers Watson PLC is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 4.16 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

15.50%

Operating Margin

17.60%

EBITDA

$2.82B

Return on Equity

19.80%

Return on Assets

5.08%

Revenue Growth (YoY)

9.10%

Earnings Growth (YoY)

-26.80%

Q:How profitable and efficient is WTW's business model?

Willis Towers Watson PLC achieves a profit margin of 15.50%, meaning it retains $15.50 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 17.60% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 19.80% and ROA at 5.08%, the company generates strong returns on invested capital.

Q:What are WTW's recent growth trends?

Willis Towers Watson PLC's revenue grew by 9.10% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings decreased by 26.80% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against INSURANCE BROKERS industry averages for proper context.

Dividend Information

Dividend Per Share

$1.88

Dividend Yield

0.64%

Ex-Dividend Date

Sep 30, 2026

Dividend Date

Oct 15, 2026

Q:What dividend income can investors expect from WTW?

Willis Towers Watson PLC offers a dividend yield of 0.64%, paying $1.88 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of Sep 30, 2026.

Q:How reliable is WTW's dividend for long-term investors?

The dividend sustainability can be assessed through the payout ratio - Willis Towers Watson PLC pays $1.88 per share in dividends against earnings of $16.14 per share, resulting in a payout ratio of 11.65%. This conservative payout below 30% indicates excellent dividend safety with substantial room for future increases. The company retains most earnings for growth while still rewarding shareholders. The next dividend payment is scheduled for Oct 15, 2026.

Company Size & Market

Market Cap

$26.8B

Revenue (TTM)

$10.10B

Revenue/Share (TTM)

$105.78

Shares Outstanding

92.87M

Book Value/Share

$82.66

Asset Type

Common Stock

Q:What is WTW's market capitalization and position?

Willis Towers Watson PLC has a market capitalization of $26.8B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 92.87M shares outstanding, the company's ownership is relatively concentrated. As a participant in the INSURANCE BROKERS industry, it competes with other firms in this sector.

Q:How does WTW's price compare to its book value?

Willis Towers Watson PLC's book value per share is $82.66, while the current stock price is $285.19, resulting in a price-to-book (P/B) ratio of 3.45. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$375.53

31.68% upside potential

Analyst Recommendations

Strong Buy

Buy

Hold

Sell

Strong Sell

Q:How reliable are analyst predictions for WTW?

21 analysts cover WTW with 67% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $375.53 implies 31.7% upside, but targets are often adjusted to follow price moves rather than predict them.

Q:What is the Wall Street consensus on WTW?

Current analyst recommendations:2 Strong Buy, 12 Buy, 7 Hold, 00The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Oct 4, 2026, 02:40 AM

Willis Towers Watson PLC (WTW) Stock