Otis Worldwide Corporation

NYSE:OTIS Stock Report

Market Cap: US$34.5b

Otis Worldwide Valuation

Is OTIS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Future Cash Flow Value

What is the Fair Price of OTIS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: OTIS ($87.16) is trading below our estimate of future cash flow value ($100.49)

Significantly Below Future Cash Flow Value: OTIS is trading below future cash flow value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for OTIS?

Key metric: As OTIS is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for OTIS. This is calculated by dividing OTIS's market cap by their current earnings.
What is OTIS's PE Ratio?
PE Ratio24.5x
EarningsUS$1.38b
Market CapUS$34.53b

Price to Earnings Ratio vs Peers

How does OTIS's PE Ratio compare to its peers?

The above table shows the PE ratio for OTIS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average36x
IR Ingersoll Rand
64.4x25.64%US$33.7b
DOV Dover
25.3x9.02%US$28.3b
XYL Xylem
35.4x14.28%US$33.0b
SNA Snap-on
18.8x6.42%US$19.2b
OTIS Otis Worldwide
24.5x11.20%US$34.5b

Price-To-Earnings vs Peers: OTIS is good value based on its Price-To-Earnings Ratio (24.5x) compared to the peer average (36x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

How does OTIS's PE Ratio compare vs other companies in the US Machinery Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
WNC Wabash National
1.5x-118.35%US$397.87m
RAIL FreightCar America
2.7x-12.49%US$220.17m
FATH Fathom Digital Manufacturing
2.6xn/aUS$35.24m
GTEC Greenland Technologies Holding
1.2x-16.11%US$17.01m
No more companies available in this PE range
OTIS 24.5xIndustry Avg. 27.2xNo. of Companies15PE01632486480+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: OTIS is good value based on its Price-To-Earnings Ratio (24.5x) compared to the US Machinery industry average (27.2x).

Price to Earnings Ratio vs Fair Ratio

What is OTIS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

OTIS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.5x
Fair PE Ratio26.6x

Price-To-Earnings vs Fair Ratio: OTIS is good value based on its Price-To-Earnings Ratio (24.5x) compared to the estimated Fair Price-To-Earnings Ratio (26.6x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst OTIS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$87.16
US$104.39
+19.77%
9.13%US$120.46US$90.00n/a14
Jan ’27US$87.35
US$103.96
+19.02%
7.58%US$120.46US$92.00n/a14
Dec ’26US$88.15
US$103.25
+17.13%
7.95%US$120.46US$92.00n/a14
Nov ’26US$92.76
US$101.86
+9.81%
6.96%US$112.00US$92.00n/a14
Oct ’26US$92.36
US$99.85
+8.11%
6.73%US$112.00US$90.00n/a13
Sep ’26US$86.38
US$99.62
+15.32%
6.61%US$112.00US$90.00n/a13
Aug ’26US$84.93
US$99.69
+17.38%
6.75%US$113.00US$90.00n/a13
Jul ’26US$100.43
US$102.21
+1.78%
10.03%US$134.00US$90.00n/a14
Jun ’26US$95.35
US$101.86
+6.82%
10.22%US$134.00US$90.00n/a14
May ’26US$96.39
US$100.57
+4.34%
10.92%US$134.00US$88.00n/a14
Apr ’26US$104.06
US$101.75
-2.22%
7.20%US$117.00US$90.00n/a14
Mar ’26US$99.78
US$100.17
+0.39%
9.12%US$117.00US$79.00n/a15
Feb ’26US$95.42
US$99.47
+4.25%
9.25%US$117.00US$79.00n/a15
Jan ’26US$92.61
US$101.57
+9.67%
9.38%US$116.00US$79.00US$87.3516
Dec ’25US$102.98
US$101.27
-1.66%
9.83%US$116.00US$79.00US$88.1515
Nov ’25US$99.44
US$99.81
+0.37%
10.10%US$120.00US$79.00US$92.7615
Oct ’25US$103.77
US$99.99
-3.64%
10.01%US$120.00US$79.00US$92.3615
Sep ’25US$94.69
US$100.14
+5.75%
10.53%US$120.00US$79.00US$86.3814
Aug ’25US$94.30
US$100.56
+6.64%
10.18%US$120.00US$79.00US$84.9314
Jul ’25US$94.95
US$99.33
+4.61%
10.52%US$120.00US$79.00US$100.4315
Jun ’25US$99.20
US$99.33
+0.13%
10.52%US$120.00US$79.00US$95.3515
May ’25US$91.43
US$98.65
+7.90%
9.95%US$119.00US$79.00US$96.3916
Apr ’25US$98.57
US$94.96
-3.66%
7.96%US$105.00US$79.00US$104.0614
Mar ’25US$95.68
US$94.96
-0.75%
7.96%US$105.00US$79.00US$99.7814
Feb ’25US$89.58
US$92.71
+3.50%
7.80%US$105.00US$79.00US$95.4214
Jan ’25US$89.47
US$90.36
+0.99%
8.50%US$100.00US$77.00US$92.6114
US$104.39
Fair Value
16.5% undervalued intrinsic discount
14
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/01/29 22:42
End of Day Share Price 2026/01/29 00:00
Earnings2025/12/31
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Otis Worldwide Corporation is covered by 19 analysts. 12 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
null nullArgus Research Company
Julian MitchellBarclays
Joel SpunginBerenberg