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Otis Worldwide Corporation (OTIS) Fair Value & Analysis

Industrials · US · Market cap $28.2B

OW Otis Worldwide Corporation logo Otis Worldwide Corporation OTIS · US
Price$73.83
Fair Value$46.40
Upside-37.2%
Quality65/100
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Healthy Growth
Solidly profitable · 10.1% net margin
Negative equity (buybacks among others) · generates free cash flow
2.30% dividend yield
Ranks above peers (12/14)
Moderate moat 61/100
Evidence: High Range $27.37 – $67.30 Share as image

Fair value as of: Jul 14, 2026

From 21 valuation models · updated 24 days ago

Fair value updated Jul 14, 2026, revised from $46.35 to $46.40 (+0.1%) since Jun 24, 2026. Share price +0.5% over the past month.

A solid business, but screening 37% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case ($67.30). The favourable scenario is already priced in.
  • Solid but not exceptional quality (65/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range ($27.37 to $67.30) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

$102.64 $59.87 Fair Value $46.40 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 14, 2026.

How to read this chart

60‑month range $59.87 – $102.64 · fair‑value band $27.37 – $67.30 · the $73.83 price screens above the $46.40 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 14, 2026.

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Analysis

Otis Worldwide Corporation (OTIS) currently trades at $73.83, while our model-based Fair Value estimate is $46.40, implying the stock looks roughly 37.2% overvalued today. We read business quality at 65/100 (solid quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Otis Worldwide Corporation generated revenue of $14.6B at a net margin of 10.1%. Revenue grew 6.4% year over year. Net debt stands at $7.7B. The stock trades on a trailing P/E of 18.6. Fundamentals as of Jul 14, 2026

Our scenario range runs from $27.37 (bear case) to $67.30 (bull case); at $73.83, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 26% below its 52-week high and 7% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -48% fair-value upside, at -37%, OTIS screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF $24.28 $37.26 $60.92 80
Rev-Margin DCF $28.30 $50.15 $77.73 74
ROIC Compounder $26.00 $32.93 $39.14 72
All 21 models by family
DCF Models
FCF DCF $22.77 $36.02 $62.40 38
Owner Earnings $21.80 $34.71 $60.41 31
5Y Revenue Exit $28.30 $49.46 $81.05 39
5Y EBITDA Exit $30.70 $53.52 $84.52 41
5Y P/E Exit $28.25 $49.37 $75.22 38
10Y Revenue Exit $24.47 $42.63 $63.50 36
10Y EBITDA Exit $27.31 $45.31 $65.76 37
10Y P/E Exit $25.81 $42.58 $59.71 35
Earnings-Based
Graham-Dodd $24.53 $40.63 $49.30 54
EPV $25.93 $32.77 $38.76 59
Dividend Discount
Gordon GGM $15.48 $19.04 $22.81 70
DDM Multi-Stage $15.48 $20.72 $27.20 61
Multiples
P/E Multiple $54.10 $72.14 $90.17 63
P/S Multiple $45.99 $61.32 $76.65 58
EV/EBIT $59.92 $84.93 $109.95 53
EV/EBITDA $43.52 $63.07 $82.62 54
EV/Revenue $35.46 $57.14 $78.82 43
Growth DCF
Growth DCF $24.28 $37.26 $60.92 80
Rev-Margin DCF $28.30 $50.15 $77.73 74
Economic Profit
ROIC Compounder $26.00 $32.93 $39.14 72
Growth Earnings
Growth-Adj P/E $38.28 $54.68 $71.08 68

Widest divergence: Multiples ($63.07) versus Dividend Discount ($19.04). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) $14.6B
Revenue growth (YoY) +6.4%
Net margin 10.1%
Free cash flow $1.4B FY2025
P/E ratio 19.5
Operating margin 15.4%
More key figures
EPS (TTM) $3.77
Dividend yield 2.3%
EPS growth (YoY) +42.6%
Net debt $7.7B FY2025

Figures from reported company fundamentals · as of Jul 14, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 65/100

Of which business quality 74 · Market factors (momentum, volatility) 41

Profitability 75
Margins and returns on capital today
Quality Growth 52
Are margins and returns improving?
Cashflow 58
Earnings quality: real cash, not paper profit
Fin. Strength 74
Balance sheet, leverage, solvency risk
Investment 93
Disciplined investing over empire-building
Low Volatility 78
Calm price path (market factor)
Momentum 30
Price trend over the last 3–12 months (market factor)
52W Momentum 18
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Otis Worldwide Corporation engages in manufacturing, installation, and servicing of elevators and escalators in the United States, China, and internationally. The company operates in two segments, New Equipment and Service.

Full company description

Otis Worldwide Corporation engages in manufacturing, installation, and servicing of elevators and escalators in the United States, China, and internationally. The company operates in two segments, New Equipment and Service. The New Equipment segment designs, manufactures, sells, and installs a range of passenger and freight elevators, as well as escalators and moving walkways for residential and commercial buildings, and infrastructure projects. This segment serves real-estate and building developers, and general contractors. It sells its products directly to customers, as well as through agents and distributors. The Service segment performs maintenance and repair services, as well as modernization services to upgrade elevators and escalators. Otis Worldwide Corporation was founded in 1853 and is headquartered in Farmington, Connecticut.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Otis Worldwide Corporation reported revenue of $14.4B in FY2025 versus $14.3B in FY2021, a compound +0.2%/yr. Reported net income was $1.4B in FY2025, compounding +2.7%/yr from FY2021.

Growth Quality 68/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
$14.4B
Latest YoY
+1.2%
Avg. growth/yr (3Y)
+1.8%
Avg. growth/yr (5Y)
+2.5%
Avg. growth/yr (8Y)
+2.0%
Revenue +0.2%/yr
FY21 $14.3B
FY22 $13.7B
FY23 $14.2B
FY24 $14.3B
FY25 $14.4B
Net income +2.7%/yr
FY21 $1.2B
FY22 $1.3B
FY23 $1.4B
FY24 $1.6B
FY25 $1.4B

OTIS screens 37% overvalued. Compare with GE Vernova Inc →

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Cite: Fair Value Calculator (2026). "Otis Worldwide Corporation Fair Value". https://www.fairvalue-calculator.com/stock/OTIS

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Specialty Industrial Machinery · 807 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 65 · Top 25%
Fair Value upside −37% · Above median
Return on assets 13% · Top 25%
Net margin (TTM) 10% · Above median
Operating margin (TTM) 15% · Top 25%
Revenue growth 6% · Above median
Dividend yield (TTM) 2.3% · Above median

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/E (TTM) 19.5× · Cheaper than median
P/S (TTM) 1.92× · Cheaper than median
P/FCF 19.5× · Pricier than 75% of peers
EV/EBITDA 13.6× · Cheaper than median
PEG 1.39× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 0
FUTURE 32 · sector 23
PAST 0 · sector 28
HEALTH 100 · sector 96
DIVIDEND 46 · sector 24

VALUE 0: the price sits above our fair-value range.

PAST 0: with negative equity (buybacks among others) return on equity is not meaningfully computable.

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Specialty Industrial Machinery stocks, each showing price versus our Fair Value estimate (as of Jul 14, 2026).

Stock Price Fair Value vs Fair Value
GE Vernova Inc 1GEV €967.60 €212.97 -78%
1SIE 1SIE €284.30 €122.46 -57%
SMNS SMNS C$31.76 C$22.68 -29%
Eaton Corporation ETN $407.28 $171.92 -58%
Atlas Copco AB ATCOA kr 195.15 kr 112.59 -42%
Sandvik AB SAND kr 384.10 kr 193.01 -50%
Doosan Enerbility Co 034020 76,400 KRW 7,938 KRW -90%
Zhejiang Sanhua Intelligent Controls Co 002050 ¥43.20 ¥22.68 -48%
Vestas Wind Systems A/S VWS kr 178.10 kr 124.54 -30%
NARI Technology Co 600406 ¥22.19 ¥18.71 -16%

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Frequently asked questions

Is Otis Worldwide Corporation (OTIS) overvalued or undervalued?
As of Jul 14, 2026, our model estimates a fair value of $46.40 versus a price of $73.83, about −37% (overvalued).
What is the fair value of OTIS?
Our model-based fair value for Otis Worldwide Corporation is $46.40 (as of Jul 14, 2026), built from audited fundamentals. The current price is $73.83.
What is the quality score of OTIS?
Otis Worldwide Corporation has a Quality Score of 65/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Otis Worldwide Corporation (OTIS)?
Otis Worldwide Corporation reported trailing-twelve-month revenue of about $14.6B (latest available figure, as of Jul 14, 2026).
What is the net profit margin of OTIS?
The net profit margin of Otis Worldwide Corporation is about 10.1%, meaning it keeps roughly 10.1% of revenue as net income. Based on the latest reported figures.
Does Otis Worldwide Corporation pay a dividend?
Otis Worldwide Corporation currently shows a dividend yield of about 2.40% relative to its recent price (as of Jul 14, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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