OTIS PE Ratio & Valuation,Is OTIS Overvalued

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 20.49 is considered Undervalued compared with the five-year average of 23.92. The fair price of Otis Worldwide Corp (OTIS) is between 105.89 to 120.54 according to relative valuation methord. Compared to the current price of 88.15 USD , Otis Worldwide Corp is Undervalued By 16.75%.

Relative Value

Fair Zone

105.89-120.54

Current Price：88.15

16.75%

Undervalued

20.49

15.84

EV/EBITDA

Otis Worldwide Corp. (OTIS) has a current EV/EBITDA of 15.84. The 5-year average EV/EBITDA is 16.47. The thresholds are as follows: Strongly Undervalued below 14.48, Undervalued between 14.48 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 15.84 falls within the Historic Trend Line -Fairly Valued range.

16.19

EV/EBIT

Otis Worldwide Corp. (OTIS) has a current EV/EBIT of 16.19. The 5-year average EV/EBIT is 17.75. The thresholds are as follows: Strongly Undervalued below 15.62, Undervalued between 15.62 and 16.68, Fairly Valued between 18.81 and 16.68, Overvalued between 18.81 and 19.87, and Strongly Overvalued above 19.87. The current Forward EV/EBIT of 16.19 falls within the Undervalued range.

2.27

Otis Worldwide Corp. (OTIS) has a current PS of 2.27. The 5-year average PS is 2.44. The thresholds are as follows: Strongly Undervalued below 2.02, Undervalued between 2.02 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 2.27 falls within the Historic Trend Line -Fairly Valued range.

17.49

P/OCF

Otis Worldwide Corp. (OTIS) has a current P/OCF of 17.49. The 5-year average P/OCF is 19.68. The thresholds are as follows: Strongly Undervalued below 15.29, Undervalued between 15.29 and 17.48, Fairly Valued between 21.87 and 17.48, Overvalued between 21.87 and 24.07, and Strongly Overvalued above 24.07. The current Forward P/OCF of 17.49 falls within the Historic Trend Line -Fairly Valued range.

22.16

P/FCF

Otis Worldwide Corp. (OTIS) has a current P/FCF of 22.16. The 5-year average P/FCF is 21.60. The thresholds are as follows: Strongly Undervalued below 16.46, Undervalued between 16.46 and 19.03, Fairly Valued between 24.17 and 19.03, Overvalued between 24.17 and 26.75, and Strongly Overvalued above 26.75. The current Forward P/FCF of 22.16 falls within the Historic Trend Line -Fairly Valued range.

Otis Worldwide Corp (OTIS) has a current Price-to-Book (P/B) ratio of -6.33. Compared to its 3-year average P/B ratio of -7.36 , the current P/B ratio is approximately -13.96% higher. Relative to its 5-year average P/B ratio of -7.56, the current P/B ratio is about -16.20% higher. Otis Worldwide Corp (OTIS) has a Forward Free Cash Flow (FCF) yield of approximately 3.85%. Compared to its 3-year average FCF yield of 3.71%, the current FCF yield is approximately 3.77% lower. Relative to its 5-year average FCF yield of 4.07% , the current FCF yield is about -5.43% lower.

-6.33

P/B

Median3y

-7.36

Median5y

-7.56

3.85

FCF Yield

Median3y

3.71

Median5y

4.07

Competitors Valuation Multiple

The average P/S ratio for OTIS's competitors is 2.53, providing a benchmark for relative valuation. Otis Worldwide Corp Corp (OTIS) exhibits a P/S ratio of 2.27, which is -10.35% above the industry average. Given its robust revenue growth of 4.00%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of OTIS decreased by 4.36% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 21.08 to 26.14.

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

24.00%

21.08 → 26.14

P/E Change

-4.36%

92.61 → 88.57

Mkt Cap Growth

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Frequently Asked Questions

Is Otis Worldwide Corp (OTIS) currently overvalued or undervalued?

What is Otis Worldwide Corp (OTIS) fair value?

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. The fair price of Otis Worldwide Corp (OTIS) is between 105.89 to 120.54 according to relative valuation methord.

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 16 2025?

As of Dec 16 2025, Otis Worldwide Corp (OTIS) has a P/B ratio of -6.33. This indicates that the market values OTIS at -6.33 times its book value.

What is the current FCF Yield for Otis Worldwide Corp (OTIS) as of Dec 16 2025?

As of Dec 16 2025, Otis Worldwide Corp (OTIS) has a FCF Yield of 3.85%. This means that for every dollar of Otis Worldwide Corp’s market capitalization, the company generates 3.85 cents in free cash flow.

What is the current Forward P/E ratio for Otis Worldwide Corp (OTIS) as of Dec 16 2025?

As of Dec 16 2025, Otis Worldwide Corp (OTIS) has a Forward P/E ratio of 20.49. This means the market is willing to pay $20.49 for every dollar of Otis Worldwide Corp’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Otis Worldwide Corp (OTIS) as of Dec 16 2025?

As of Dec 16 2025, Otis Worldwide Corp (OTIS) has a Forward P/S ratio of 2.27. This means the market is valuing OTIS at $2.27 for every dollar of expected revenue over the next 12 months.

OTIS Valuation