* Note: Prices are in Million (M) USD.
Description:
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $1,890 M
Debt : $5,931 M
EBITDA : $2,594 M
Net Debt (Debt - Cash): $4,041 M
Since Net Debt is covered by EBITDA within 2 years, 2 points assigned.
This criteria used industry in which company operates:
Sector: Consumer cyclical
Industry: Personal services
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 18.78
Since Forward PE Ratio is between 15 - 20, 3 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $597 M
Average Revenue: $5,760 M
Revenue Converted To Free Cash Flow (%): 10.4%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $9,930 M
Revenue 4 Years Ago (2020-12-31): $9,352 M
Last 5 Years Average Revenue Growth: 1%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $102 M
Share Count 5 Years Ago (2020-12-31): $130 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $18.39
Trailing 12-Month Earnings Per Share (EPS): $16.42
Average Earnings Per Share (EPS): $17.41
Dividend Per Share (DPS): $2
Payout Ratio: 10%
Dividend Yield: 1%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: 12.2%
Since Average ROE is between 10 - 20, 3 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $327
52-Week Low: $276
Threshold Price (15% Above 52-Week Low): $317
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $32,240 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 20 points to above Willis Towers Watson PLC (WTW) stock.
Last 9 Years Avg PE 17.29, Fair Value PE 15, Industry Based PE 12, Growth Based PE 1, RCFC Based PE 20.3, ROE Based PE 19.79, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 14.64. Value-Trades has assined P/E value 14.64. Since an average (Current Year EPS + Next Year EPS) earning per share is $17.405.
The fair value of Willis Towers Watson PLC (WTW) stock should be (14.64 x $17.405) = $254.77.
