Skip to content

Willis Towers Watson Public Limited Company Ordinary Shares (WTW) — WACC Analysis

WACC Breakdown

Willis Towers Watson Public Limited Company Ordinary Shares (WTW) has a weighted average cost of capital (WACC) of 6.9%. The cost of equity is 7.5%, derived from a beta of 0.50 and a risk-free rate of 4.7%. The after-tax cost of debt is 3.5%. The capital structure is 83.0% equity and 17.0% debt.

Interpretation

A WACC of 6.9% suggests that the market views Willis Towers Watson Public Limited Company Ordinary Shares as relatively low-risk, with a lower cost of financing.

Investors can compare WTW's WACC of 6.9% against industry peers to gauge its relative financing costs. A beta of 0.50 reflects the stock's volatility relative to the broader market.

DeepViews
VALUATION

WTW WACC: 6.86% for Willis Towers Watson Public Limited Company Ordinary Shares

Current inputs imply a 7.55% cost of equity and a 4.38% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
Loading market data...
[02]
WACC Calculation Process
1
Market Data Loaded
2
Company Data Fetched
3
Beta Calculated (5Y)
4
Inputs Auto-Populated
5
WACC Calculated
[03]
Step 2: Enter Ticker Symbol
Quick search:
Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Willis Towers Watson Public Limited Company Ordinary Shares Common Stock (WTW) WACC Results
Weighted Average Cost of Capital
6.86%
Cost of Equity
7.55%
Risk-Free Rate4.73%
Beta0.50
Market Risk Premium4.23%
Cost of Debt
3.46%
Pre-Tax Cost of Debt4.38%
Tax Rate21.00%
Tax Shield0.92%
Capital Structure
Equity: 83.02%($31.92B)
Debt: 16.98%($6530.00M)
Equity Component
6.27%
83.02% × 7.55%
Debt Component
0.59%
16.98% × 3.46%

Willis Towers Watson Public Limited Company Ordinary Shares (WTW) WACC in context

Willis Towers Watson Public Limited Company Ordinary Shares (WTW) currently screens with an estimated WACC of 6.86%. That blends a 7.55% cost of equity, a 4.38% pre-tax cost of debt, and a 83.02% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What WTW WACC implies

A 6.86% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates WTW

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.50 and equity accounts for 83.02% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.