Using the industry peer median P/E multiple (trailing + forward), Willis Towers Watson Public Limited Company (WTW) has a fair value of $225.95 based on 6 comparable companies in the Insurance - Brokers industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Willis Towers Watson Public Limited CompanyWTW | 28,463 | 17.7x | 17.2x |
| The Hartford Financial Services Group, Inc.HIG | 37,604 | 10.1x | 13.5x |
| State Street CorporationSTT | 35,163 | 13.4x | 12.4x |
| Arch Capital Group Ltd.ACGL | 34,092 | 8.1x | 10.7x |
| Raymond James Financial, Inc.RJF | 28,655 | 14.1x | 14.0x |
| W. R. Berkley CorporationWRB | 24,743 | 14.6x | 16.1x |
| Brown & Brown, Inc.BRO | 22,237 | 20.6x | 17.3x |
| Industry Median | 13.7x | 13.7x | |
| (*) Profit after tax | 1,605 | 1,654 | |
| Equity Value | 22,053 | 22,684 | |
| (/) Outstanding shares | 99 | 99 | |
| Fair Price | $223 | $229 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.