Intrinsic value of Willis Towers Watson - WLTW

Previous Close

$147.13

  Intrinsic Value

$176.01

stock screener

  Rating & Target

hold

+20%

Previous close

$147.13

 
Intrinsic value

$176.01

 
Up/down potential

+20%

 
Rating

hold

We calculate the intrinsic value of WLTW stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2017), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 19.4

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  4.00
  4.10
  4.19
  4.27
  4.34
  4.41
  4.47
  4.52
  4.57
  4.61
  4.65
  4.69
  4.72
  4.75
  4.77
  4.79
  4.81
  4.83
  4.85
  4.86
  4.88
  4.89
  4.90
  4.91
  4.92
  4.93
  4.94
  4.94
  4.95
  4.95
Revenue, $m
  8,530
  8,880
  9,252
  9,647
  10,066
  10,510
  10,980
  11,476
  12,000
  12,554
  13,138
  13,754
  14,402
  15,086
  15,806
  16,563
  17,361
  18,200
  19,083
  20,011
  20,987
  22,014
  23,093
  24,227
  25,419
  26,672
  27,988
  29,371
  30,824
  32,351
Variable operating expenses, $m
  3,414
  3,495
  3,581
  3,673
  3,770
  3,872
  3,981
  4,096
  4,217
  4,345
  3,040
  3,183
  3,333
  3,491
  3,658
  3,833
  4,018
  4,212
  4,416
  4,631
  4,857
  5,094
  5,344
  5,607
  5,882
  6,172
  6,477
  6,797
  7,133
  7,487
Fixed operating expenses, $m
  4,312
  4,407
  4,504
  4,603
  4,704
  4,807
  4,913
  5,021
  5,132
  5,245
  5,360
  5,478
  5,598
  5,722
  5,848
  5,976
  6,108
  6,242
  6,379
  6,520
  6,663
  6,810
  6,960
  7,113
  7,269
  7,429
  7,592
  7,760
  7,930
  8,105
Total operating expenses, $m
  7,726
  7,902
  8,085
  8,276
  8,474
  8,679
  8,894
  9,117
  9,349
  9,590
  8,400
  8,661
  8,931
  9,213
  9,506
  9,809
  10,126
  10,454
  10,795
  11,151
  11,520
  11,904
  12,304
  12,720
  13,151
  13,601
  14,069
  14,557
  15,063
  15,592
Operating income, $m
  804
  978
  1,167
  1,372
  1,593
  1,830
  2,085
  2,359
  2,651
  2,964
  4,737
  5,093
  5,471
  5,873
  6,300
  6,754
  7,236
  7,746
  8,287
  8,860
  9,467
  10,110
  10,789
  11,508
  12,267
  13,070
  13,918
  14,814
  15,761
  16,760
EBITDA, $m
  3,856
  4,096
  4,356
  4,635
  4,935
  5,257
  5,601
  5,968
  6,360
  6,777
  7,221
  7,692
  8,193
  8,724
  9,288
  9,885
  10,517
  11,186
  11,894
  12,642
  13,434
  14,270
  15,154
  16,087
  17,071
  18,111
  19,208
  20,366
  21,586
  22,874
Interest expense (income), $m
  143
  245
  292
  343
  398
  456
  517
  582
  651
  724
  801
  882
  968
  1,059
  1,154
  1,254
  1,360
  1,471
  1,588
  1,712
  1,841
  1,978
  2,121
  2,272
  2,430
  2,597
  2,772
  2,956
  3,149
  3,352
  3,565
Earnings before tax, $m
  559
  686
  824
  974
  1,137
  1,313
  1,503
  1,708
  1,927
  2,163
  3,855
  4,125
  4,412
  4,719
  5,046
  5,394
  5,764
  6,158
  6,576
  7,019
  7,490
  7,989
  8,517
  9,078
  9,671
  10,299
  10,963
  11,666
  12,409
  13,194
Tax expense, $m
  151
  185
  223
  263
  307
  355
  406
  461
  520
  584
  1,041
  1,114
  1,191
  1,274
  1,362
  1,456
  1,556
  1,663
  1,775
  1,895
  2,022
  2,157
  2,300
  2,451
  2,611
  2,781
  2,960
  3,150
  3,350
  3,562
Net income, $m
  408
  501
  602
  711
  830
  959
  1,097
  1,247
  1,407
  1,579
  2,814
  3,011
  3,221
  3,445
  3,684
  3,938
  4,208
  4,495
  4,800
  5,124
  5,468
  5,832
  6,218
  6,627
  7,060
  7,518
  8,003
  8,516
  9,058
  9,632

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  33,716
  35,098
  36,569
  38,131
  39,787
  41,541
  43,398
  45,360
  47,433
  49,621
  51,929
  54,362
  56,927
  59,628
  62,473
  65,468
  68,620
  71,937
  75,426
  79,095
  82,954
  87,011
  91,276
  95,758
  100,470
  105,421
  110,624
  116,091
  121,835
  127,869
Adjusted assets (=assets-cash), $m
  33,716
  35,098
  36,569
  38,131
  39,787
  41,541
  43,398
  45,360
  47,433
  49,621
  51,929
  54,362
  56,927
  59,628
  62,473
  65,468
  68,620
  71,937
  75,426
  79,095
  82,954
  87,011
  91,276
  95,758
  100,470
  105,421
  110,624
  116,091
  121,835
  127,869
Revenue / Adjusted assets
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
Average production assets, $m
  16,122
  16,783
  17,486
  18,233
  19,025
  19,864
  20,751
  21,690
  22,681
  23,727
  24,831
  25,994
  27,221
  28,512
  29,873
  31,305
  32,812
  34,398
  36,066
  37,821
  39,666
  41,606
  43,645
  45,789
  48,042
  50,409
  52,897
  55,511
  58,258
  61,143
Working capital, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total debt, $m
  5,399
  6,350
  7,362
  8,437
  9,576
  10,783
  12,061
  13,411
  14,837
  16,342
  17,930
  19,604
  21,368
  23,227
  25,185
  27,245
  29,414
  31,696
  34,096
  36,620
  39,275
  42,066
  45,001
  48,085
  51,326
  54,733
  58,312
  62,074
  66,025
  70,177
Total liabilities, $m
  23,196
  24,147
  25,159
  26,234
  27,373
  28,580
  29,858
  31,208
  32,634
  34,139
  35,727
  37,401
  39,165
  41,024
  42,982
  45,042
  47,211
  49,493
  51,893
  54,417
  57,072
  59,863
  62,798
  65,882
  69,123
  72,530
  76,109
  79,871
  83,822
  87,974
Total equity, $m
  10,519
  10,951
  11,409
  11,897
  12,414
  12,961
  13,540
  14,152
  14,799
  15,482
  16,202
  16,961
  17,761
  18,604
  19,492
  20,426
  21,410
  22,444
  23,533
  24,678
  25,882
  27,147
  28,478
  29,877
  31,347
  32,891
  34,515
  36,220
  38,012
  39,895
Total liabilities and equity, $m
  33,715
  35,098
  36,568
  38,131
  39,787
  41,541
  43,398
  45,360
  47,433
  49,621
  51,929
  54,362
  56,926
  59,628
  62,474
  65,468
  68,621
  71,937
  75,426
  79,095
  82,954
  87,010
  91,276
  95,759
  100,470
  105,421
  110,624
  116,091
  121,834
  127,869
Debt-to-equity ratio
  0.510
  0.580
  0.650
  0.710
  0.770
  0.830
  0.890
  0.950
  1.000
  1.060
  1.110
  1.160
  1.200
  1.250
  1.290
  1.330
  1.370
  1.410
  1.450
  1.480
  1.520
  1.550
  1.580
  1.610
  1.640
  1.660
  1.690
  1.710
  1.740
  1.760
Adjusted equity ratio
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  408
  501
  602
  711
  830
  959
  1,097
  1,247
  1,407
  1,579
  2,814
  3,011
  3,221
  3,445
  3,684
  3,938
  4,208
  4,495
  4,800
  5,124
  5,468
  5,832
  6,218
  6,627
  7,060
  7,518
  8,003
  8,516
  9,058
  9,632
Depreciation, amort., depletion, $m
  3,052
  3,118
  3,189
  3,263
  3,343
  3,426
  3,515
  3,609
  3,708
  3,813
  2,483
  2,599
  2,722
  2,851
  2,987
  3,130
  3,281
  3,440
  3,607
  3,782
  3,967
  4,161
  4,365
  4,579
  4,804
  5,041
  5,290
  5,551
  5,826
  6,114
Funds from operations, $m
  3,461
  3,620
  3,790
  3,975
  4,173
  4,385
  4,612
  4,856
  5,115
  5,392
  5,297
  5,610
  5,943
  6,296
  6,671
  7,068
  7,489
  7,935
  8,407
  8,906
  9,434
  9,992
  10,582
  11,206
  11,864
  12,559
  13,293
  14,067
  14,884
  15,746
Change in working capital, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from operations, $m
  3,461
  3,620
  3,790
  3,975
  4,173
  4,385
  4,612
  4,856
  5,115
  5,392
  5,297
  5,610
  5,943
  6,296
  6,671
  7,068
  7,489
  7,935
  8,407
  8,906
  9,434
  9,992
  10,582
  11,206
  11,864
  12,559
  13,293
  14,067
  14,884
  15,746
Maintenance CAPEX, $m
  -1,550
  -1,612
  -1,678
  -1,749
  -1,823
  -1,902
  -1,986
  -2,075
  -2,169
  -2,268
  -2,373
  -2,483
  -2,599
  -2,722
  -2,851
  -2,987
  -3,130
  -3,281
  -3,440
  -3,607
  -3,782
  -3,967
  -4,161
  -4,365
  -4,579
  -4,804
  -5,041
  -5,290
  -5,551
  -5,826
New CAPEX, $m
  -619
  -661
  -703
  -747
  -792
  -839
  -888
  -938
  -991
  -1,046
  -1,104
  -1,164
  -1,226
  -1,292
  -1,360
  -1,432
  -1,507
  -1,586
  -1,668
  -1,755
  -1,845
  -1,940
  -2,039
  -2,144
  -2,253
  -2,368
  -2,488
  -2,614
  -2,747
  -2,885
Cash from investing activities, $m
  -2,169
  -2,273
  -2,381
  -2,496
  -2,615
  -2,741
  -2,874
  -3,013
  -3,160
  -3,314
  -3,477
  -3,647
  -3,825
  -4,014
  -4,211
  -4,419
  -4,637
  -4,867
  -5,108
  -5,362
  -5,627
  -5,907
  -6,200
  -6,509
  -6,832
  -7,172
  -7,529
  -7,904
  -8,298
  -8,711
Free cash flow, $m
  1,291
  1,346
  1,409
  1,479
  1,557
  1,644
  1,738
  1,842
  1,955
  2,077
  1,821
  1,964
  2,117
  2,282
  2,459
  2,649
  2,851
  3,068
  3,299
  3,545
  3,807
  4,086
  4,382
  4,697
  5,032
  5,387
  5,764
  6,163
  6,586
  7,035
Issuance/(repayment) of debt, $m
  864
  951
  1,012
  1,075
  1,140
  1,207
  1,277
  1,350
  1,426
  1,505
  1,588
  1,674
  1,764
  1,859
  1,957
  2,061
  2,169
  2,282
  2,400
  2,525
  2,655
  2,791
  2,934
  3,084
  3,242
  3,407
  3,580
  3,761
  3,952
  4,152
Issuance/(repurchase) of shares, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  864
  951
  1,012
  1,075
  1,140
  1,207
  1,277
  1,350
  1,426
  1,505
  1,588
  1,674
  1,764
  1,859
  1,957
  2,061
  2,169
  2,282
  2,400
  2,525
  2,655
  2,791
  2,934
  3,084
  3,242
  3,407
  3,580
  3,761
  3,952
  4,152
Total cash flow (excl. dividends), $m
  2,156
  2,297
  2,421
  2,554
  2,697
  2,851
  3,016
  3,192
  3,381
  3,583
  3,409
  3,638
  3,882
  4,141
  4,417
  4,709
  5,020
  5,350
  5,699
  6,069
  6,462
  6,877
  7,317
  7,782
  8,274
  8,794
  9,343
  9,924
  10,538
  11,186
Retained Cash Flow (-), $m
  -393
  -431
  -459
  -487
  -517
  -547
  -579
  -612
  -647
  -683
  -720
  -759
  -800
  -843
  -888
  -934
  -983
  -1,035
  -1,089
  -1,145
  -1,204
  -1,266
  -1,331
  -1,399
  -1,470
  -1,545
  -1,623
  -1,706
  -1,792
  -1,883
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  66
  68
  71
  74
  77
  81
  84
  88
  92
  96
  100
  105
  110
  115
  121
  126
  133
  139
  146
  153
  160
  168
  176
  185
  194
  203
  213
  224
  235
  247
Cash available for distribution, $m
  1,762
  1,866
  1,962
  2,066
  2,180
  2,303
  2,436
  2,580
  2,734
  2,900
  2,689
  2,879
  3,082
  3,298
  3,529
  3,775
  4,037
  4,315
  4,611
  4,925
  5,258
  5,611
  5,986
  6,383
  6,804
  7,249
  7,720
  8,219
  8,746
  9,304
Discount rate, %
  5.60
  5.88
  6.17
  6.48
  6.81
  7.15
  7.50
  7.88
  8.27
  8.69
  9.12
  9.58
  10.06
  10.56
  11.09
  11.64
  12.22
  12.84
  13.48
  14.15
  14.86
  15.60
  16.38
  17.20
  18.06
  18.96
  19.91
  20.91
  21.95
  23.05
PV of cash for distribution, $m
  1,669
  1,665
  1,639
  1,607
  1,568
  1,522
  1,468
  1,406
  1,337
  1,261
  1,029
  961
  887
  809
  729
  648
  568
  491
  417
  349
  287
  231
  183
  141
  107
  79
  57
  40
  28
  18
Current shareholders' claim on cash, %
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Willis Towers Watson Public Limited Company (Willis Towers Watson) is a holding company. The Company operates as a global advisory, broking and solutions company. It is engaged in offering risk management, insurance broking, consulting, technology and solutions, and private exchanges. The Company operates through eight segments: Willis International; Willis North America; Willis Capital, Wholesale & Reinsurance (CWR); Willis GB; Towers Watson Benefits; Towers Watson Exchange Solutions; Towers Watson Risk and Financial Services; and Towers Watson Talent and Rewards. The Willis GB segment comprises four business units: Property and Casualty, Transport, Financial Lines and Retail Networks. The Willis Capital Wholesale and Reinsurance segment includes Willis Re; Willis Capital Markets & Advisory; Willis' wholesale business, and Willis Portfolio Underwriting Services. The Willis North America segment provides risk management, insurance brokerage and related risk services.

FINANCIAL RATIOS  of  Willis Towers Watson (WLTW)

Valuation Ratios
P/E Ratio 47.7
Price to Sales 2.5
Price to Book 2
Price to Tangible Book
Price to Cash Flow 21.8
Price to Free Cash Flow 32.5
Growth Rates
Sales Growth Rate 106%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 91.8%
Cap. Spend. - 3 Yr. Gr. Rate 20.6%
Financial Strength
Quick Ratio 2
Current Ratio 0.8
LT Debt to Equity 33.4%
Total Debt to Equity 38.4%
Interest Coverage 3
Management Effectiveness
Return On Assets 2.5%
Ret/ On Assets - 3 Yr. Avg. 2.8%
Return On Total Capital 4.3%
Ret/ On T. Cap. - 3 Yr. Avg. 6.7%
Return On Equity 6.8%
Return On Equity - 3 Yr. Avg. 13.9%
Asset Turnover 0.3
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 15.9%
EBITDA Margin - 3 Yr. Avg. 17.7%
Operating Margin 7%
Oper. Margin - 3 Yr. Avg. 11.7%
Pre-Tax Margin 4.3%
Pre-Tax Margin - 3 Yr. Avg. 8.9%
Net Profit Margin 5.3%
Net Profit Margin - 3 Yr. Avg. 8.2%
Effective Tax Rate -28.2%
Eff/ Tax Rate - 3 Yr. Avg. -2.4%
Payout Ratio 47.4%

WLTW stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the WLTW stock intrinsic value calculation we used $8202 million for the last fiscal year's total revenue generated by Willis Towers Watson. The default revenue input number comes from 2017 income statement of Willis Towers Watson. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our WLTW stock valuation model: a) initial revenue growth rate of 4% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 5.6%, whose default value for WLTW is calculated based on our internal credit rating of Willis Towers Watson, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Willis Towers Watson.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of WLTW stock the variable cost ratio is equal to 40.7%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $4219 million in the base year in the intrinsic value calculation for WLTW stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for Willis Towers Watson.

Corporate tax rate of 27% is the nominal tax rate for Willis Towers Watson. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the WLTW stock is equal to 0.8%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for WLTW are equal to 189%.

Life of production assets of 10 years is the average useful life of capital assets used in Willis Towers Watson operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for WLTW is equal to 0%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $10126 million for Willis Towers Watson - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 132 million for Willis Towers Watson is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Willis Towers Watson at the current share price and the inputted number of shares is $19.4 billion.

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COMPANY NEWS

▶ Dont Expect a Big Raise Next Year   [Aug-15-18 05:00AM  Bloomberg]
▶ Willis Towers Watson: 2Q Earnings Snapshot   [08:02AM  Associated Press]
▶ MOVES- MUFG, KBW, Ernst & Young, Willis Towers   [Jul-16-18 10:46AM  Reuters]
▶ New normal prompts reinsurer action: Willis Re 1st View   [Jul-02-18 05:11AM  GlobeNewswire]
▶ [$$] Big three fire first shot as CMA finalises report   [Jun-30-18 05:00AM  Financial Times]
▶ [$$] Willis Towers Watson chief prepared to do more deals   [Jun-24-18 05:37AM  Financial Times]
▶ Willis Towers Watson Announces Regular Quarterly Dividend   [May-24-18 04:15PM  GlobeNewswire]
▶ Company News For May 8, 2018   [May-08-18 09:53AM  Zacks]
▶ Edited Transcript of WLTW presentation 6-Mar-17 2:15pm GMT   [Apr-10-18 01:36PM  Thomson Reuters StreetEvents]
▶ Subdued markets lively M&A: Willis Re 1st View   [Apr-03-18 04:19AM  GlobeNewswire]
▶ Willis Towers Watson Announces Analyst Day   [Mar-07-18 04:15PM  GlobeNewswire]
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