Willis Towers Watson

Methodology

Willis Towers Watson's fair value calculation works reasonably well given the company's consistent earnings growth from insurance broking, reinsurance, and consulting services that provide steady fee-based revenue. The method captures WTW's position as a diversified risk advisor and benefits consultant with predictable cash flows from long-term client relationships. Fair value estimates are reliable because the business model emphasizes recurring revenue, though investors should normalize for acquisition impacts and regulatory changes affecting pension consulting.

Methodology

WTW typically commands moderate PEG ratios reflecting its position as a leading insurance broker and human capital consultant with steady growth from organic expansion and occasional acquisitions. The PEG framework works well for WTW because growth rates are relatively predictable and supported by insurance market activity and corporate benefits spending, though investors should watch for regulatory headwinds. Comparing WTW's PEG to other insurance brokers like Marsh McLennan and Aon provides context for relative valuation.

Methodology

WTW pays a modest dividend, as management balances returning cash to shareholders with reinvesting in technology platforms and strategic acquisitions to expand service capabilities. PEGY adds some incremental value by incorporating the dividend alongside modest growth expectations. For total-return investors, PEGY captures both WTW's steady growth in risk advisory and human capital services plus its commitment to regular dividend payments.