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 20.25 is considered Undervalued compared with the five-year average of 23.95. The fair price of Otis Worldwide Corp (OTIS) is between 107.64 to 122.14 according to relative valuation methord. Compared to the current price of 86.79 USD , Otis Worldwide Corp is Undervalued By 19.37%.
Relative Value
Fair Zone
107.64-122.14
Current Price：86.79
19.37%
Undervalued
20.24
PE
1Y
3Y
5Y
Trailing
Forward
15.67
EV/EBITDA
Otis Worldwide Corp. (OTIS) has a current EV/EBITDA of 15.67. The 5-year average EV/EBITDA is 16.47. The thresholds are as follows: Strongly Undervalued below 14.47, Undervalued between 14.47 and 15.47, Fairly Valued between 17.47 and 15.47, Overvalued between 17.47 and 18.47, and Strongly Overvalued above 18.47. The current Forward EV/EBITDA of 15.67 falls within the Historic Trend Line -Fairly Valued range.
16.02
EV/EBIT
Otis Worldwide Corp. (OTIS) has a current EV/EBIT of 16.02. The 5-year average EV/EBIT is 17.75. The thresholds are as follows: Strongly Undervalued below 15.64, Undervalued between 15.64 and 16.70, Fairly Valued between 18.81 and 16.70, Overvalued between 18.81 and 19.86, and Strongly Overvalued above 19.86. The current Forward EV/EBIT of 16.02 falls within the Undervalued range.
2.24
PS
Otis Worldwide Corp. (OTIS) has a current PS of 2.24. The 5-year average PS is 2.44. The thresholds are as follows: Strongly Undervalued below 2.01, Undervalued between 2.01 and 2.23, Fairly Valued between 2.65 and 2.23, Overvalued between 2.65 and 2.86, and Strongly Overvalued above 2.86. The current Forward PS of 2.24 falls within the Historic Trend Line -Fairly Valued range.
17.25
P/OCF
Otis Worldwide Corp. (OTIS) has a current P/OCF of 17.25. The 5-year average P/OCF is 19.69. The thresholds are as follows: Strongly Undervalued below 15.31, Undervalued between 15.31 and 17.50, Fairly Valued between 21.88 and 17.50, Overvalued between 21.88 and 24.06, and Strongly Overvalued above 24.06. The current Forward P/OCF of 17.25 falls within the Undervalued range.
21.86
P/FCF
Otis Worldwide Corp. (OTIS) has a current P/FCF of 21.86. The 5-year average P/FCF is 21.63. The thresholds are as follows: Strongly Undervalued below 16.41, Undervalued between 16.41 and 19.02, Fairly Valued between 24.25 and 19.02, Overvalued between 24.25 and 26.86, and Strongly Overvalued above 26.86. The current Forward P/FCF of 21.86 falls within the Historic Trend Line -Fairly Valued range.
Otis Worldwide Corp (OTIS) has a current Price-to-Book (P/B) ratio of -6.25. Compared to its 3-year average P/B ratio of -7.36 , the current P/B ratio is approximately -15.14% higher. Relative to its 5-year average P/B ratio of -7.56, the current P/B ratio is about -17.36% higher. Otis Worldwide Corp (OTIS) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.71%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 4.08% , the current FCF yield is about -100.00% lower.
-6.25
P/B
Median3y
-7.36
Median5y
-7.56
3.90
FCF Yield
Median3y
3.71
Median5y
4.08
Competitors Valuation Multiple
The average P/S ratio for OTIS's competitors is 4.24, providing a benchmark for relative valuation. Otis Worldwide Corp Corp (OTIS) exhibits a P/S ratio of , which is -100.00% 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
Performance Decomposition
1Y
3Y
5Y
Market capitalization of OTIS decreased by 6.15% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 20.99 to 25.65.
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.
People Also Watch
FAQ
Is Otis Worldwide Corp (OTIS) currently overvalued or undervalued?
What is Otis Worldwide Corp (OTIS) fair value?
How does OTIS's valuation metrics compare to the industry average?
What is the current P/B ratio for Otis Worldwide Corp (OTIS) as of Dec 05 2025?
What is the current FCF Yield for Otis Worldwide Corp (OTIS) as of Dec 05 2025?
What is the current Forward P/E ratio for Otis Worldwide Corp (OTIS) as of Dec 05 2025?