Willis Towers Watson Stock Market Value
| WTW Stock | USD 320.65 1.47 0.46% |
| Symbol | Willis |
Is Multi-line Insurance space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Willis Towers. If investors know Willis will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Willis Towers listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Willis Towers Watson is measured differently than its book value, which is the value of Willis that is recorded on the company's balance sheet. Investors also form their own opinion of Willis Towers' value that differs from its market value or its book value, called intrinsic value, which is Willis Towers' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Willis Towers' market value can be influenced by many factors that don't directly affect Willis Towers' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Willis Towers' value and its price as these two are different measures arrived at by different means. Investors typically determine if Willis Towers is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Willis Towers' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Willis Towers 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Willis Towers' stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Willis Towers.
| 12/19/2024 |
| 01/18/2025 |
If you would invest 0.00 in Willis Towers on December 19, 2024 and sell it all today you would earn a total of 0.00 from holding Willis Towers Watson or generate 0.0% return on investment in Willis Towers over 30 days. Willis Towers is related to or competes with Marsh McLennan, Arthur J, Brown Brown, Erie Indemnity, Aon PLC, and CorVel Corp. Willis Towers Watson Public Limited Company operates as an advisory, broking, and solutions company worldwide More
Willis Towers Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Willis Towers' stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Willis Towers Watson upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.1 | |||
| Information Ratio | 0.1205 | |||
| Maximum Drawdown | 6.26 | |||
| Value At Risk | (1.46) | |||
| Potential Upside | 2.67 |
Willis Towers Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Willis Towers' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Willis Towers' standard deviation. In reality, there are many statistical measures that can use Willis Towers historical prices to predict the future Willis Towers' volatility.| Risk Adjusted Performance | 0.1245 | |||
| Jensen Alpha | 0.1553 | |||
| Total Risk Alpha | 0.1355 | |||
| Sortino Ratio | 0.1308 | |||
| Treynor Ratio | 0.3873 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Willis Towers' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Willis Towers Watson Backtested Returns
At this stage we consider Willis Stock to be very steady. Willis Towers Watson shows Sharpe Ratio of 0.15, which attests that the company had a 0.15% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Willis Towers Watson, which you can use to evaluate the volatility of the company. Please check out Willis Towers' Market Risk Adjusted Performance of 0.3973, downside deviation of 1.1, and Mean Deviation of 0.8948 to validate if the risk estimate we provide is consistent with the expected return of 0.17%. Willis Towers has a performance score of 11 on a scale of 0 to 100. The firm maintains a market beta of 0.42, which attests to possible diversification benefits within a given portfolio. As returns on the market increase, Willis Towers' returns are expected to increase less than the market. However, during the bear market, the loss of holding Willis Towers is expected to be smaller as well. Willis Towers Watson right now maintains a risk of 1.19%. Please check out Willis Towers Watson semi variance, rate of daily change, and the relationship between the value at risk and kurtosis , to decide if Willis Towers Watson will be following its historical returns.
Auto-correlation | -0.62 |
Very good reverse predictability
Willis Towers Watson has very good reverse predictability. Overlapping area represents the amount of predictability between Willis Towers time series from 19th of December 2024 to 3rd of January 2025 and 3rd of January 2025 to 18th of January 2025. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Willis Towers Watson price movement. The serial correlation of -0.62 indicates that roughly 62.0% of current Willis Towers price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.62 | |
| Spearman Rank Test | -0.37 | |
| Residual Average | 0.0 | |
| Price Variance | 21.82 |
Willis Towers Watson lagged returns against current returns
Autocorrelation, which is Willis Towers stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Willis Towers' stock expected returns. We can calculate the autocorrelation of Willis Towers returns to help us make a trade decision. For example, suppose you find that Willis Towers has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Willis Towers regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Willis Towers stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Willis Towers stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Willis Towers stock over time.
Current vs Lagged Prices |
| Timeline |
Willis Towers Lagged Returns
When evaluating Willis Towers' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Willis Towers stock have on its future price. Willis Towers autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Willis Towers autocorrelation shows the relationship between Willis Towers stock current value and its past values and can show if there is a momentum factor associated with investing in Willis Towers Watson.
Regressed Prices |
| Timeline |
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Additional Tools for Willis Stock Analysis
When running Willis Towers' price analysis, check to measure Willis Towers' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Willis Towers is operating at the current time. Most of Willis Towers' value examination focuses on studying past and present price action to predict the probability of Willis Towers' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Willis Towers' price. Additionally, you may evaluate how the addition of Willis Towers to your portfolios can decrease your overall portfolio volatility.