Using the PEG framework with analyst consensus forward EPS growth of 17.4% plus 1.3% dividend yield, Willis Towers Watson Public Limited Company has a fair value of $342.13 based on NTM EPS (FY2026) of $19.65. The current PEG ratio is 0.84.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 16.1% |
| Dividend Yield | +1.3% |
| Adjusted Growth (clamped 8–25%) | 17.4% |
| Fair P/E | 17.4x |
| NTM EPS (FY2026) | $19.65 |
| Fair Value | $342.13 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $16.26 | — | — |
| FY2026E | $19.65 | +20.9% | 11 |
| FY2027E | $22.35 | +13.7% | 11 |
| FY2028E | $25.45 | +13.9% | 6 |
3Y Forward EPS CAGR: 16.1%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $4.2B | $14.90 | — |
| FY2022 | $1.0B | $8.98 | -39.7% |
| FY2023 | $1.1B | $9.95 | +10.8% |
| FY2024 | $-98.0M | $-0.96 | -109.6% |
| FY2025 | $1.6B | $16.26 | — |
4Y Historical EPS CAGR: 2.2%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.