Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Willis Towers Watson Public Limited Company (0Y4Q.L)

Company Dividend Discount ModelIndustry: Insurance - BrokersSector: Financial Services

Valuation Snapshot

Stable Growth$365.10 - $744.96$511.14
Multi-Stage$399.07 - $437.59$417.97
Blended Fair Value$464.55
Current Price$344.22
Upside34.96%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS1.48%5.36%3.513.493.663.713.433.273.042.751.982.75
YoY Growth--0.57%-4.61%-1.34%8.09%5.17%7.52%10.47%39.20%-28.16%31.90%
Dividend Yield--1.04%1.29%1.58%1.58%1.49%2.12%1.72%1.82%1.29%1.79%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)2,116.00
(-) Cash Dividends Paid (M)358.00
(=) Cash Retained (M)1,758.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)423.20264.50158.70
Cash Retained (M)1,758.001,758.001,758.00
(-) Cash Required (M)-423.20-264.50-158.70
(=) Excess Retained (M)1,334.801,493.501,599.30
(/) Shares Outstanding (M)100.75100.75100.75
(=) Excess Retained per Share13.2514.8215.87
LTM Dividend per Share3.553.553.55
(+) Excess Retained per Share13.2514.8215.87
(=) Adjusted Dividend16.8018.3819.43
WACC / Discount Rate7.64%7.64%7.64%
Growth Rate2.90%3.90%4.90%
Fair Value$365.10$511.14$744.96
Upside / Downside6.06%48.49%116.42%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)2,116.002,198.602,284.432,373.612,466.272,562.552,639.42
Payout Ratio16.92%31.53%46.15%60.77%75.38%90.00%92.50%
Projected Dividends (M)358.00693.331,054.291,442.381,859.172,306.292,441.47

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.64%7.64%7.64%
Growth Rate2.90%3.90%4.90%
Year 1 PV (M)637.92644.12650.32
Year 2 PV (M)892.52909.95927.55
Year 3 PV (M)1,123.481,156.551,190.27
Year 4 PV (M)1,332.391,384.941,439.03
Year 5 PV (M)1,520.751,596.091,674.39
PV of Terminal Value (M)34,699.5836,418.6938,205.27
Equity Value (M)40,206.6442,110.3544,086.83
Shares Outstanding (M)100.75100.75100.75
Fair Value$399.07$417.97$437.59
Upside / Downside15.94%21.42%27.12%

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