Willis Towers Watson Public may be overvalued with poor growth indicators, but the 15 analysts following the company give it an average rating of buy. The analysts have set target prices ranging from $230.0 to $302.0 per share, for an average of $268.33. At today's price of $223.98, Willis Towers Watson Public is trading -16.53% away from its average target price, suggesting there is an analyst consensus of some upside potential.
Willis Towers Watson Public Limited Company operates as an advisory, broking, and solutions company worldwide. Based in London, United Kingdom, the large-cap Finance company has 46,600 full time employees. Willis Towers Watson Public has offered a 1.4% dividend yield over the last 12 months.
Willis Towers Watson Public has a trailing twelve month P/E ratio of 24.0, compared to an average of 14.34 for the Finance sector. Based on its EPS guidance of 17.23, the company has a forward P/E ratio of 13.0. Based on the average compound growth rate of Willis Towers Watson Public's historical and projected earnings per share, which is 16.5%, the company's PEG ratio is 1.52. This suggests that these shares are overvalued.
Furthermore, Willis Towers Watson Public is likely overvalued compared to its book value, since its P/B ratio of 2.4 is higher than the sector average of 1.57. The company's shares are currently trading 28.2% above their Graham number, implying that they are overvalued in terms of earnings and book value.
If analysts are giving the the company a decent rating despite its hefty price point, it could be related to its strong cash flows. You can see for yourself in the financial summary table below:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $9,039 | $9,352 | $8,998 | $8,866 |
| Revenue Growth | n/a | 3.46% | -3.79% | -1.47% |
| Operating Margins | 14.7% | 12.6% | 24.5% | 13.3% |
| Operating Margins Growth | n/a | -14.29% | 94.44% | -45.71% |
| Earnings Per Share | $8.02 | $7.65 | $32.78 | $9.34 |
| EPS Growth | n/a | -4.61% | 328.5% | -71.51% |
| Diluted Shares (MM) | 130 | 130 | 129 | 106 |
| Free Cash Flow (MM) | $776 | $1,488 | $1,860 | $608 |
| FCF Growth | n/a | 91.75% | 25.0% | -67.31% |
| Capital Expenditures (MM) | -$305 | -$286 | -$201 | -$204 |
| Net Debt / EBITDA | 2.17 | 1.59 | 0.01 | 1.81 |
