WTW Willis Towers Watson
$313.47
▲ 1.0%Updated Oct 16, 2:25 PM ET
Report Card
WTW at a glance — five pillars scored 0–100 from real filed financials.
How the 0–100 rating is calculatedOverall: Favorable · 61/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
Price — Past Year
▼ Down 14.2% in the year to Jul 6, 2026
Key Metrics
Market Cap
$24.52B
P/E
16.56x
Forward P/E (est.)
13.62x
ROE
21.0%
Revenue Growth
0.9%
EPS Growth
21.6%
Profit Margin
16.8%
FCF Yield
5.6%
Debt / Equity
0.79x
ROIC
10.0%
Interest Coverage
8.59x
Current Ratio
1.1x
Dividend Yield
1.3%
Implied Growth (rev. DCF)
2.5%
Rating Score
61/100
Business Overview
Willis Towers Watson (WTW) is a large-cap company in the Insurance Brokers industry, part of the Financials sector of the S&P 500, with a market value around $24.52B.
In its latest reported year it generated about $9.71B in revenue and $1.60B in net profit.
Our model rates WTW Favorable (61/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Economic Moat
Evidence of durable competitive advantage in the filed financials (10 years of history).
Profit margins and economic moats, explainedThe numbers don't show a durable competitive advantage — margins, growth, or returns on capital have been unstable or thin. Great returns are still possible; they just aren't protected.
14.6% average over the last 3 years
±6.4 pts around 12.4% across 10 years
grew in 6 of the last 9 year-over-year periods
positive in 10 of 10 years
10.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical Analysis (Educational)
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what WTW's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. WTW trades near $313.47, above its 50-day average ($261.59) and 200-day average ($302.69). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 70 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. WTW's is $7.42 (~2.4% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. In the month to Jul 6, 2026, WTW found buyers near $250.24 (support) and sellers near $286.94 (resistance); its 52-week range then was $240.61–$352.79. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.8× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. The indicators were last computed on Jul 6, 2026; the price is current.
Revenue Growth
4Y CAGR
1.9%
Revenue moved from $7.89B in 2016 to $9.71B in 2025, a 2.3% compound annual growth rate. The most recent year was roughly flat (0.9%) year over year. Slower, mature growth is common for established businesses.
Profitability
Gross Margin
—
Operating Margin
23.0%
Net Margin
16.5%
ROE
21.0%
Willis Towers Watson keeps about 16.8% of each sales dollar as net profit. Return on equity is 21.0% and return on invested capital about 10.0%. Margins this wide usually signal pricing power or a cost advantage.
Debt Analysis
Total Debt
$9.69B
Net Debt
$8.06B
Net Debt / EBITDA
3.61x
Debt / Equity
0.79x
Leverage: debt-to-equity is 0.8x, and operating profit covers interest about 8.6x, with a current ratio of 1.1x. That is a moderate, manageable debt load for most businesses. It carries roughly $9.69B of total debt against $1.63B of cash.
Cash Flow Analysis
Operating CF
$1.77B
Free Cash Flow
$1.55B
FCF Margin
15.9%
In the latest year Willis Towers Watson produced about $1.77B of operating cash flow and $1.55B of free cash flow after capital spending. That is a free-cash-flow yield of about 5.6% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
Dividend Safety
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
What to look for in a dividend stockThe payout is comfortably covered by cash the business actually generates, with a raise habit behind it.
Dividend yield
1.3%
Per share (latest FY)
$3.68
Total paid (latest FY)
$358.00M
History on record
10 years
dividend uses 23% of free cash flow
22% of net income paid out
total dividends increased 2 years in a row
no cuts in the last 10 years on record
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
Valuation Analysis
P/E
16.56x
P/S
2.53x
P/B
4.44x
EV / EBITDA
—
WTW trades at 16.6x trailing earnings (about 13.6x on estimated forward earnings), 2.5x sales, and 4.4x book value. Reverse-engineering today's price implies the market expects roughly 2.5% long-term free-cash-flow growth. That is a fairly typical valuation for a profitable company.
DCF Fair Value (Educational)
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
How this DCF estimate is calculatedDCF fair value / share
$239.24
Current price
$313.47
Starting FCF (latest 10-K)
$1.55B
Growth, years 1–5
0.9%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Metrics vs. Sector Range
Where WTW sits versus the Financials companies we cover.
Bands show the middle half (25th–75th percentile) of the 141 Financials companies in our coverage that have fundamentals data — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
Sector Peer Comparison
How WTW stacks up against its Financials peers — valuation, profitability, and growth versus the sector median.
Among the 141 rated Financials companies we cover, WTW ranks #85 by our overall rating. It trades at roughly in line versus the sector on earnings (16.6x P/E vs. 14.9x median) with a higher return on equity (21.0% vs. 13.6%) and slower revenue growth (0.9% vs. 15.9%).
P/E vs sector
16.6x
median 14.9x
ROE vs sector
21.0%
median 13.6%
Growth vs sector
0.9%
median 15.9%
Sector rank
#85
of 141 rated
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Financials companies by sub-industry and size, preferring ones with full data. Sector medians and rank use the 141 rated companies among the 289 Financials stocks we cover. Educational, not a recommendation.
5-Year Projection Model
Project revenue → earnings → price. Edit the assumptions to build your own case.
What drives this projection, and its limits2030 scenario price range (Base Case)
$244.56 – $415.75
vs. $313.47 today · implied CAGR -5% – 6%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $10.00B | $10.30B | $10.61B | $10.93B | $11.25B |
| Net income | $1.70B | $1.75B | $1.80B | $1.86B | $1.91B |
| EPS | $21.73 | $22.38 | $23.05 | $23.74 | $24.46 |
| Share price (low) | $217.29 | $223.80 | $230.52 | $237.43 | $244.56 |
| Share price (high) | $369.39 | $380.47 | $391.88 | $403.64 | $415.75 |
| CAGR (low–high) | -31% / 18% | -16% / 10% | -10% / 8% | -7% / 7% | -5% / 6% |
Educational scenario model, not a forecast or investment advice. It starts from the latest annual revenue in SEC filings. By default, growth is trailing revenue growth (held between 3% and 45% a year), the net margin is the latest one (held between 3% and 50%, so a loss-making company is modeled with a small profit), and the Base case P/E runs from 60% to 100% of today's. Carrying recent growth forward five years can miss badly in either direction. Outputs are only as good as the assumptions.
Bull Case
The case for WTW:
- High net margins (16.8%) point to pricing power or efficiency.
- Strong return on equity (21.0%) shows capital is put to work well.
- Healthy free-cash-flow yield (~5.6%) funds buybacks and dividends.
- Our model's overall read is Favorable (61/100).
Bear Case
The case against WTW:
- Revenue growth is slow (0.9%), limiting the upside engine.
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Key Risks
Growth risk — sluggish revenue (0.9%) leaves little margin for execution missteps.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
Investment Thesis
On balance, the fundamentals screen favourably: Willis Towers Watson is a large-cap financials business growing at a mature pace, with solid profitability, and a heavier debt load to watch. It trades at 16.6x earnings, which our model scores Favorable (61/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 28 Wall Street analysts covering WTW recommend (September 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Analysts have turned more cautious over the last three months (-4 pts of buy ratings).
Latest SEC Filings
WTW's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen. How to read a 10-K
In the Idea Lab
WTW — frequently asked questions
Is WTW a good stock to buy?
We don't give buy or sell advice. Our model rates Willis Towers Watson Favorable (61/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is WTW's rating on The Stocks School?
Willis Towers Watson currently scores 61/100 (Favorable) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does WTW's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Willis Towers Watson's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for WTW calculated?
It's a scenario model. It starts from the latest annual revenue and net margin in SEC filings, grows revenue at an assumed rate (trailing revenue growth by default), and applies a P/E range built around today's multiple to show the resulting share-price range. When a stock has no growth or P/E data, the starting values are placeholders. It's a tool for thinking, not a prediction.
Is this WTW analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell WTW. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.