Is Willis Towers Watson Plc overvalued or undervalued?

As of 31 July 2025, the valuation grade for Willis Towers Watson Plc has moved from risky to very expensive. The company appears overvalued based on its current metrics, with a P/E ratio of 24, a Price to Book Value of 3.77, and an EV to EBITDA of 11.34. In comparison, peer Brown & Brown, Inc. has a higher P/E of 33.19 but a lower EV to EBITDA of 13.72, indicating that while Willis Towers Watson is priced lower on a P/E basis, it still reflects a premium in the context of its EV to EBITDA ratio.
In terms of returns, Willis Towers Watson has underperformed against the S&P 500 across multiple periods, with a 1-year return of 13.40% compared to the S&P 500's 17.14%, and a 5-year return of 61.56% versus 96.61% for the index. This underperformance reinforces the notion that the stock may be overvalued given its current price levels and the competitive landscape.