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Willis Towers Watson (STU:WTY) Cyclically Adjusted PS Ratio : 3.13 (As of May. 23, 2024)


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What is Willis Towers Watson Cyclically Adjusted PS Ratio?

As of today (2024-05-23), Willis Towers Watson's current share price is €232.00. Willis Towers Watson's Cyclically Adjusted Revenue per Share for the quarter that ended in Mar. 2024 was €74.08. Willis Towers Watson's Cyclically Adjusted PS Ratio for today is 3.13.

The historical rank and industry rank for Willis Towers Watson's Cyclically Adjusted PS Ratio or its related term are showing as below:

STU:WTY' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 1.93   Med: 2.67   Max: 4.28
Current: 3.2

During the past years, Willis Towers Watson's highest Cyclically Adjusted PS Ratio was 4.28. The lowest was 1.93. And the median was 2.67.

STU:WTY's Cyclically Adjusted PS Ratio is ranked worse than
87.56% of 394 companies
in the Insurance industry
Industry Median: 1.04 vs STU:WTY: 3.20

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.

Willis Towers Watson's adjusted revenue per share data for the three months ended in Mar. 2024 was €20.709. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is €74.08 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Willis Towers Watson Cyclically Adjusted PS Ratio Historical Data

The historical data trend for Willis Towers Watson's Cyclically Adjusted PS Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Willis Towers Watson Cyclically Adjusted PS Ratio Chart

Willis Towers Watson Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.27 3.34 3.55 3.29 3.04

Willis Towers Watson Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted PS Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.09 3.05 2.68 3.04 3.43

Competitive Comparison of Willis Towers Watson's Cyclically Adjusted PS Ratio

For the Insurance Brokers subindustry, Willis Towers Watson's Cyclically Adjusted PS Ratio, along with its competitors' market caps and Cyclically Adjusted PS Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Willis Towers Watson's Cyclically Adjusted PS Ratio Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Willis Towers Watson's Cyclically Adjusted PS Ratio distribution charts can be found below:

* The bar in red indicates where Willis Towers Watson's Cyclically Adjusted PS Ratio falls into.



Willis Towers Watson Cyclically Adjusted PS Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PS Ratio takes the Revenue per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/S calculation. Because it considers this 10-year average, it's often referred to as the CAPS Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio.

Willis Towers Watson's Cyclically Adjusted PS Ratio for today is calculated as

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=232.00/74.08
=3.13

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Willis Towers Watson's Cyclically Adjusted Revenue per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, Willis Towers Watson's adjusted Revenue per Share data for the three months ended in Mar. 2024 was:

Adj_RevenuePerShare=Revenue per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=20.709/131.6000*131.6000
=20.709

Current CPI (Mar. 2024) = 131.6000.

Willis Towers Watson Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201406 10.016 99.800 13.207
201409 9.377 100.000 12.340
201412 11.793 99.900 15.535
201503 14.556 99.600 19.233
201506 11.906 100.100 15.653
201509 10.924 100.200 14.347
201512 12.958 100.400 16.985
201603 14.751 100.400 19.335
201606 12.390 101.000 16.144
201609 11.473 101.500 14.875
201612 13.334 102.200 17.170
201703 15.712 102.700 20.133
201706 12.687 103.500 16.131
201709 11.596 104.300 14.631
201712 13.202 105.000 16.547
201803 13.976 105.100 17.500
201806 12.808 105.900 15.916
201809 12.069 106.600 14.899
201812 15.795 107.100 19.408
201903 15.739 107.000 19.357
201906 13.942 107.900 17.004
201909 13.892 108.400 16.865
201912 13.992 108.500 16.971
202003 17.167 108.600 20.803
202006 14.433 108.800 17.458
202009 12.389 109.200 14.930
202012 16.876 109.400 20.301
202103 14.396 109.700 17.270
202106 13.350 111.400 15.771
202109 13.000 112.400 15.221
202112 19.006 114.700 21.806
202203 16.621 116.500 18.775
202206 17.155 120.500 18.735
202209 17.771 122.300 19.122
202212 23.574 125.300 24.759
202303 19.406 126.800 20.141
202306 18.624 129.400 18.941
202309 19.329 130.100 19.552
202312 25.943 130.500 26.162
202403 20.709 131.600 20.709

Add all the adjusted revenue per share together and divide 10 will get our Cyclically Adjusted Revenue per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Willis Towers Watson  (STU:WTY) Cyclically Adjusted PS Ratio Explanation

Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PS Ratio should give similar results to regular PS Ratio.


Willis Towers Watson Cyclically Adjusted PS Ratio Related Terms

Thank you for viewing the detailed overview of Willis Towers Watson's Cyclically Adjusted PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Willis Towers Watson (STU:WTY) Business Description

Traded in Other Exchanges
Address
C/o Willis Group Ltd, 51 Lime Street, London, GBR, EC3M 7DQ
In January 2016, Towers Watson and Willis Group merged to form Willis Towers Watson, a global advisory, insurance brokerage, and solutions company. The company operates in two business segments: health, wealth, and career (its consulting operations) and risk and brokering (its brokerage operations). It has about 47,000 employees.

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