OTIS Valuation

Otis Worldwide Corp

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87.300

-0.6(-0.683%)1D

Overview
Forecast
Valuation
Earnings

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 21.38 is considered Undervalued compared with the five-year average of 24.24. The fair price of Otis Worldwide Corp (OTIS) is between 100.03 to 113.03 according to relative valuation methord. Compared to the current price of 87.30 USD , Otis Worldwide Corp is Undervalued By 12.73%.

Relative Value

Fair Zone

100.03-113.03

Current Price：87.30

12.73%

Undervalued

21.38

Trailing

Forward

15.45

EV/EBITDA

Otis Worldwide Corp. (OTIS) has a current EV/EBITDA of 15.45. The 5-year average EV/EBITDA is 16.42. The thresholds are as follows: Strongly Undervalued below 14.32, Undervalued between 14.32 and 15.37, Fairly Valued between 17.47 and 15.37, Overvalued between 17.47 and 18.52, and Strongly Overvalued above 18.52. The current Forward EV/EBITDA of 15.45 falls within the Historic Trend Line -Fairly Valued range.

16.63

EV/EBIT

Otis Worldwide Corp. (OTIS) has a current EV/EBIT of 16.63. The 5-year average EV/EBIT is 17.76. The thresholds are as follows: Strongly Undervalued below 15.67, Undervalued between 15.67 and 16.71, Fairly Valued between 18.81 and 16.71, Overvalued between 18.81 and 19.86, and Strongly Overvalued above 19.86. The current Forward EV/EBIT of 16.63 falls within the Undervalued range.

2.33

Otis Worldwide Corp. (OTIS) has a current PS of 2.33. The 5-year average PS is 2.42. The thresholds are as follows: Strongly Undervalued below 1.97, Undervalued between 1.97 and 2.19, Fairly Valued between 2.65 and 2.19, Overvalued between 2.65 and 2.88, and Strongly Overvalued above 2.88. The current Forward PS of 2.33 falls within the Historic Trend Line -Fairly Valued range.

19.53

P/OCF

Otis Worldwide Corp. (OTIS) has a current P/OCF of 19.53. The 5-year average P/OCF is 19.73. The thresholds are as follows: Strongly Undervalued below 15.39, Undervalued between 15.39 and 17.56, Fairly Valued between 21.90 and 17.56, Overvalued between 21.90 and 24.07, and Strongly Overvalued above 24.07. The current Forward P/OCF of 19.53 falls within the Historic Trend Line -Fairly Valued range.

21.60

P/FCF

Otis Worldwide Corp. (OTIS) has a current P/FCF of 21.60. The 5-year average P/FCF is 22.25. The thresholds are as follows: Strongly Undervalued below 15.08, Undervalued between 15.08 and 18.66, Fairly Valued between 25.83 and 18.66, Overvalued between 25.83 and 29.41, and Strongly Overvalued above 29.41. The current Forward P/FCF of 21.60 falls within the Historic Trend Line -Fairly Valued range.

Otis Worldwide Corp (OTIS) has a current Price-to-Book (P/B) ratio of -6.40. Compared to its 3-year average P/B ratio of -7.33 , the current P/B ratio is approximately -12.65% higher. Relative to its 5-year average P/B ratio of -7.58, the current P/B ratio is about -15.52% higher. Otis Worldwide Corp (OTIS) has a Forward Free Cash Flow (FCF) yield of approximately 3.91%. Compared to its 3-year average FCF yield of 3.77%, the current FCF yield is approximately 3.73% lower. Relative to its 5-year average FCF yield of 4.19% , the current FCF yield is about -6.74% lower.

-6.40

P/B

Median3y

-7.33

Median5y

-7.58

3.91

FCF Yield

Median3y

3.77

Median5y

4.19

Competitors Valuation Multiple

The average P/S ratio for OTIS's competitors is 2.55, providing a benchmark for relative valuation. Otis Worldwide Corp Corp (OTIS) exhibits a P/S ratio of 2.33, which is -8.77% above the industry average. Given its robust revenue growth of -0.17%, 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 7.23% over the past 1 year. The primary factor behind the change was an decrease in Revenue Growth from 3.60B to 3.60B.

The secondary factor is the P/E Change, contributed -1.22%to the performance.

Overall, the performance of OTIS in the past 1 year is driven by Revenue Growth. Which is more sustainable.

-0.17%

3.60B → 3.60B

Revenue Growth

-5.84%

12.50 → 11.77

Margin Expansion

-1.22%

23.42 → 23.14

P/E Change

-7.23%