OTIS Valuation

Otis Worldwide Corp

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91.020

-0.13(-0.143%)1D

OTIS Relative Valuation

OTIS's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, OTIS is overvalued; if below, it's undervalued.

Historical Valuation

Otis Worldwide Corp (OTIS) is now in the Undervalued zone, suggesting that its current forward PE ratio of 21.23 is considered Undervalued compared with the five-year average of 24.05. The fair price of Otis Worldwide Corp (OTIS) is between 107.69 to 121.92 according to relative valuation methord. Compared to the current price of 91.02 USD , Otis Worldwide Corp is Undervalued By 15.48%.

Relative Value

Fair Zone

107.69-121.92

Current Price：91.02

15.48%

Undervalued

21.23

Trailing

Forward

16.26

EV/EBITDA

Otis Worldwide Corp. (OTIS) has a current EV/EBITDA of 16.26. The 5-year average EV/EBITDA is 16.47. The thresholds are as follows: Strongly Undervalued below 14.45, Undervalued between 14.45 and 15.46, Fairly Valued between 17.48 and 15.46, Overvalued between 17.48 and 18.49, and Strongly Overvalued above 18.49. The current Forward EV/EBITDA of 16.26 falls within the Historic Trend Line -Fairly Valued range.

16.62

EV/EBIT

Otis Worldwide Corp. (OTIS) has a current EV/EBIT of 16.62. The 5-year average EV/EBIT is 17.78. The thresholds are as follows: Strongly Undervalued below 15.71, Undervalued between 15.71 and 16.75, Fairly Valued between 18.82 and 16.75, Overvalued between 18.82 and 19.86, and Strongly Overvalued above 19.86. The current Forward EV/EBIT of 16.62 falls within the Undervalued range.

91.02

Otis Worldwide Corp. (OTIS) has a current PS of 91.02. The 5-year average PS is 3.02. The thresholds are as follows: Strongly Undervalued below -11.29, Undervalued between -11.29 and -4.13, Fairly Valued between 10.17 and -4.13, Overvalued between 10.17 and 17.32, and Strongly Overvalued above 17.32. The current Forward PS of 91.02 falls within the Strongly Overvalued range.

18.28

P/OCF

Otis Worldwide Corp. (OTIS) has a current P/OCF of 18.28. The 5-year average P/OCF is 19.75. The thresholds are as follows: Strongly Undervalued below 15.39, Undervalued between 15.39 and 17.57, Fairly Valued between 21.93 and 17.57, Overvalued between 21.93 and 24.11, and Strongly Overvalued above 24.11. The current Forward P/OCF of 18.28 falls within the Historic Trend Line -Fairly Valued range.

20.86

P/FCF

Otis Worldwide Corp. (OTIS) has a current P/FCF of 20.86. The 5-year average P/FCF is 21.69. The thresholds are as follows: Strongly Undervalued below 16.19, Undervalued between 16.19 and 18.94, Fairly Valued between 24.44 and 18.94, Overvalued between 24.44 and 27.20, and Strongly Overvalued above 27.20. The current Forward P/FCF of 20.86 falls within the Historic Trend Line -Fairly Valued range.

Otis Worldwide Corp (OTIS) has a current Price-to-Book (P/B) ratio of -6.54. Compared to its 3-year average P/B ratio of -7.37 , the current P/B ratio is approximately -11.29% higher. Relative to its 5-year average P/B ratio of -7.57, the current P/B ratio is about -13.63% higher. Otis Worldwide Corp (OTIS) has a Forward Free Cash Flow (FCF) yield of approximately 3.73%. Compared to its 3-year average FCF yield of 3.71%, the current FCF yield is approximately 0.50% lower. Relative to its 5-year average FCF yield of 4.10% , the current FCF yield is about -9.00% lower.

-6.54

P/B

Median3y

-7.37

Median5y

-7.57

3.73

FCF Yield

Median3y

3.71

Median5y

4.10

Competitors Valuation Multiple

The average P/S ratio for OTIS's competitors is 338.80, providing a benchmark for relative valuation. Otis Worldwide Corp Corp (OTIS) exhibits a P/S ratio of 91.02, which is -73.13% above the industry average. Given its robust revenue growth of 4.00%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Comfort Systems USA Inc

Performance Decomposition

Market capitalization of OTIS decreased by 11.61% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 23.01 to 26.86.

The secondary factor is the Revenue Growth, contributed 4.00%to the performance.

Overall, the performance of OTIS in the past 1 year is driven by P/E Change. Which is more unsustainable.

4.00%

3.55B → 3.69B

Revenue Growth

-32.36%

15.70 → 10.62

Margin Expansion

16.75%

23.01 → 26.86

P/E Change

-11.61%