| Company name | Towers Watson & Co |
| Stock ticker | TW |
| Live stock price | [stckqut]TW[/stckqut] |
| P/E compared to competitors | Good |
MANAGEMENT EXECUTION
| Employee productivity | Poor |
| Sales growth | Poor |
| EPS growth | Poor |
| P/E growth | Good |
| EBIT growth | Good |
ANALYSIS
| Confident Investor Rating | Fair |
| Target stock price (TWCA growth scenario) | $116.2 |
| Target stock price (averages with growth) | $97.68 |
| Target stock price (averages with no growth) | $53.2 |
| Target stock price (manual assumptions) | $107.9 |
The following company description is from Google Finance: http://www.google.com/finance?q=tw
Towers Watson & Co. (Towers Watson) is a global professional services company. The Company offers solutions in the areas of benefits, talent management, rewards, and risks and capital management. The Company offers its clients comprehensive services across four business segments: Benefits, Risk and Financial Services, Talent and Rewards, and exchanges Solutions. The Company delivers consulting services and solutions, which help organizations, anticipate, identify and capitalize on emerging opportunities in benefit and human capital management. The Company advises the insurance industry on a range of strategic and risks management issues, and the Company helps its clients in all industries mitigate risk through insurance, reinsurance and capital markets transactions. In November 2013, Towers Watson and Co announced the completion of its sale of the Company’s reinsurance brokerage business to Jardine Lloyd Thompson Group plc. In November 2013, the Company acquired Liazon Corporation.
Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Towers Watson & Co as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.
How was this analysis of Towers Watson & Co calculated?
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
- Stock price at the time of the calculation: $112.97
- Growth: 0.12
- Current EPS (TTM): $4.93
- P/E: 20
- Future EPS Calc: $8.68
- Future Stock Price Calc: $173.76
- Target stock price: $107.89
I hope that this makes you a better investor. [/s2If]