Otis Worldwide Corp (OTIS) fair value: what the stock is really worth
As of Nov 4, 2026: fair value (intrinsic value) of Otis Worldwide Corp stock $48.55, price $79.79, that is 39.2% below the price, quality 77 out of 100. Rating: strongly overvalued. Calculated from audited financials with 21 of our 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 4, 2026.
How to read this chart
60‑month range $59.51 – $102.02 · fair‑value band $29.64 – $72.80 · the $79.79 price screens above the $48.55 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 4, 2026.
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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.
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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.
Stock analysis
Otis Worldwide Corp (OTIS) currently trades at $79.79, while our model-based Fair Value estimate is $48.55, 39% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of $61.81 per share, and 0 of the 21 models we run sit above the $79.79 price.
Bear case: the Dividend Discount group reads lowest at $19.40, and 21 of the 21 models stay below the price. Data coverage for this calculation is medium.
Scenario range: $29.64 (bear) to $72.80 (bull), the price of $79.79 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 77/100 (high quality), in the Industrials sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Otis Worldwide Corp 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.
Key figures
Market cap $30.8B Large · P/E ratio 19.8 · P/S ratio 2.04 · EPS (TTM) $4.02 · Dividend yield 2.2% · Net margin 10.3% · Return on assets (EBIT) 19.4% · Operating margin 15.8%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 61 out of 100 (low confidence).
What moves the price
The share trades about 14% below its 52-week high and 25% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −47% fair-value upside, at −39%, OTIS screens cheaper than that median.
Fair Value models
Bear$29.64Fair Value $48.55Bull$72.80
Price $79.79 · Downside -39.2%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($1.95 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, 2 officers or directors sold shares worth $190,094 and none bought.
SaleJoseph Jay ArmasPresident, Otis Americas835 shares at $77.74$64,917Nov 3, 2026
SaleThibault Pierre Marie LefeburePresident, Otis EMEA1,628 shares at $76.89$125,177May 7, 2026
SaleStephane de MontlivaultPresident, Otis Asia Pacific47,944 shares at $92.25$4.4MFeb 12, 2026
SaleNora E. LaFreniereEVP, General Counsel27,418 shares at $90.38$2.5MFeb 10, 2026
SaleMichael Patrick RyanSVP, CAO & Controller2× since Nov 5, 2025: 4,210 shares, avg. $91.23$384,088Feb 10, 2026
SaleJudith Fran MarksChair, CEO and President, Director102,887 shares at $90.29$9.3MFeb 5, 202610b5-1 plan
SaleNeil GreenEVP & Chief Digital Officer6,000 shares at $86.45$518,700Feb 2, 2026
Plus 4 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.68/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+1.2%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+1.8%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+2.5%
Start year 2020 (pandemic)
Revenue growth 8 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+2.0%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
+7.2%
Earnings growth per share plus dividend.
Earnings per share, growth per year+5.0%
Dividend (yield on the price)2.2%
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.13% → 15%
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+12.2%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+4.4%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +9.6% a year for the price and +2.0% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (96 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
AI conclusion: Otis benefits from the largest global service portfolio in elevators and escalators that delivers recurring revenue, yet high debt and negative equity remain key concerns.
Main risk: Independent elevator service firms could capture more of Otis's installed base by offering equivalent maintenance at 20 to 40 percent lower cost, squeezing service margins and recurring revenue.
Bull case: Otis could deepen its Otis ONE IoT platform and predictive tools to raise switching costs for customers and defend service contracts against lower-priced independents.
Bear case: If independents continue gaining share in the fragmented service market, Otis might lose significant portions of its high-margin maintenance portfolio and face sustained margin pressure on its core recurring business.
Otis runs the largest service portfolio in its industry, generating recurring revenue from maintaining millions of elevators and escalators worldwide. Recent updates show accelerating organic growth in maintenance, repairs and modernization, yet service margins remain under pressure from temporary cost investments that are expected to unwind. With earnings ahead and a CEO transition set for 2027, will the service momentum more than compensate for those margin effects and the leadership change?
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Specialty Industrial Machinery · 808 stocks
Beats the industry median on 9/12 measures
Overall it ranks above its industry peers.
Valuation
Quality Score77 · Top 25%
Fair Value upside−39.2% · Below median
Profitability
Return on equity (12 months)Negative equity ⓘThe company's equity is below zero, for example after large share buybacks. A ratio to negative equity has no meaning, so we show no number here and do not rank it against the peer group.
Return on assets13.0% · Top 25%
Net margin (12 months)10.3% · Above median
Operating margin (12 months)15.8% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)6.1% · Below median
Dividend yield (12 months)2.2% · Above median
Balance sheet
Debt / equityNegative equity ⓘThe company's equity is below zero, for example after large share buybacks. A ratio to negative equity has no meaning, so we show no number here and do not rank it against the peer group.
Valuation Multiplesvs Specialty Industrial Machinery median · lower = cheaper
P/E (12 months)19.8× · Cheaper than median
P/BNegative equity ⓘThe company's equity is below zero, for example after large share buybacks. A ratio to negative equity has no meaning, so we show no number here and do not rank it against the peer group.
P/S (12 months)2.04× · Cheaper than median
Price / free cash flow21.4× · Cheaper than median
EV/EBITDA13.4× · Cheaper than median
PEG1.69× · Pricier than median
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 0
FUTURE (revenue growth)31· sector 31
PAST (return on equity)0· sector 28
HEALTH (low debt)0· sector 96
DIVIDEND (yield)43· sector 29
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.
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Is Otis Worldwide Corp (OTIS) overvalued or undervalued?
As of Nov 4, 2026, our model estimates a fair value of $48.55 versus a price of $79.79, about 39% lower (overvalued).
What is the fair value of OTIS?
Our model-based fair value for Otis Worldwide Corp is $48.55 (as of Nov 4, 2026), built from audited fundamentals. The current price: $79.79.
What is the quality score of OTIS?
Otis Worldwide Corp has a Quality Score of 77/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Otis Worldwide Corp (OTIS)?
Our model-based price target is the fair value of $48.55 (as of Nov 4, 2026) from 21 valuation models. Cautious scenario $29.64, optimistic scenario $72.80. It is a calculation from audited fundamentals, not an analyst target.
What is the Otis Worldwide Corp stock forecast for 2026?
Our models put fair value at $48.55, about 39% lower versus a price of $79.79 (overvalued). Cautious scenario $29.64, optimistic scenario $72.80. The calculation is refreshed regularly with new filings.
What is the revenue of Otis Worldwide Corp (OTIS)?
Otis Worldwide Corp reported trailing-twelve-month revenue of about $15.1B (latest available figure, as of Nov 4, 2026).
Does Otis Worldwide Corp pay a dividend?
Otis Worldwide Corp currently shows a dividend yield of 2.16% relative to its recent price (as of Nov 4, 2026).
What growth is priced into Otis Worldwide Corp (OTIS)?
For today's price to be fair in a discounted-cash-flow model, Otis Worldwide Corp would have to grow free cash flow by +12.2 % per year for five years (discount rate 8.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +2.5 % per year. As of Nov 4, 2026.
What discount rate (WACC) does the fair value of OTIS use?
Our models discount Otis Worldwide Corp at 8.9 %: a base by market capitalisation (large), damped by beta 0.86, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Otis Worldwide Corp that is +12.2 % per year a year over ten years, using the same discount rate (8.9 %) and the same formula as our fair value.
How much growth has Otis Worldwide Corp (OTIS) delivered so far?
Over the past 5 years revenue at Otis Worldwide Corp grew +2.5 % a year. The price currently implies +12.2 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Otis Worldwide Corp (OTIS) growing?
The median revenue growth in the sector is +7.8 % a year. That is the yardstick for the growth priced into Otis Worldwide Corp (+12.2 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Otis Worldwide Corp (OTIS)?
The free-cash-flow yield on the price is 4.68 %: that much free cash flow Otis Worldwide Corp produces per unit of market value. When it exceeds the discount rate of our models (8.9 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Otis Worldwide Corp (OTIS)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Otis Worldwide Corp it is $48.55 per share (as of Nov 4, 2026), against a price of $79.79. It is the blended result of 21 valuation models (cash flow, earnings, asset, dividend).
Is Otis Worldwide Corp stock overvalued or undervalued in 2026?
As of Nov 4, 2026, OTIS trades above its calculated fair value: price $79.79, fair value $48.55, a gap of about −39% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of OTIS?
No. The price is what the market pays today ($79.79); the fair value is what the company's own numbers justify ($48.55). For Otis Worldwide Corp the two are $31.24 per share apart. That gap is exactly why we show both numbers side by side.
How much is Otis Worldwide Corp worth?
The market values Otis Worldwide Corp at about $30.8B (market capitalisation, as of Nov 4, 2026). Per share that is $79.79; our models calculate a fair value of $48.55 per share.
What do the bullish and bearish scenarios say about OTIS?
Our models span a range for Otis Worldwide Corp: cautious scenario $29.64, base $48.55, optimistic $72.80 per share (as of Nov 4, 2026, price $79.79). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of OTIS?
Otis Worldwide Corp trades at a price-to-earnings ratio of 19.8 (as of Nov 4, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $48.55 is built from several models across several years. Excluding one-off items of fiscal year 2025 it is 20.3 (reported for FY2025: 22.7). Median P/E at fiscal year-end, 6 fiscal years (2020 to 2025), earnings ex one-offs: 24.0. Other multiples: PEG 1.7, P/S 2.0, EV/EBITDA 13.4.
What is the PEG ratio of OTIS?
The PEG ratio of Otis Worldwide Corp is 1.69 (P/E divided by earnings growth, as of Nov 4, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Otis Worldwide Corp (OTIS)?
Balance-sheet figures for Otis Worldwide Corp (as of Nov 4, 2026): negative equity, so no return on equity and no debt-to-equity ratio. They feed the Quality Score of 77/100, which measures business quality independently of the share price.
How far is OTIS from its 52-week high?
Otis Worldwide Corp trades at $79.79, about 14% below its 52-week high of $92.50 and 25% above the low of $64.05 (as of Nov 4, 2026). Distance from the high says nothing about value: that is what the fair value of $48.55 is for.
Which stocks are comparable to Otis Worldwide Corp?
From the same area (Industrials) we also value SIE, GE Vernova Inc, Eaton Corporation, Parker-Hannifin Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Otis Worldwide Corp stock attractive at the current price?
The data as of Nov 4, 2026: price $79.79, calculated fair value $48.55 (−39%), Quality Score 77/100, from 21 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of OTIS calculated?
We run Otis Worldwide Corp through 21 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $48.55, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.0% above its aggregate fair value. Otis Worldwide Corp itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Otis Worldwide Corp (OTIS)?
The closing price on Nov 4, 2026 was $79.79. Our model-based fair value is $48.55, about 39% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Otis Worldwide Corp right now?
A high-quality business (quality 77/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety. The price sits above even our optimistic bull case ($72.80). The favourable scenario is already priced in. A fairly wide model range ($29.64 to $72.80) leaves room in how you read the outcome.
Key figures of Otis Worldwide Corp
How large is the market capitalisation of Otis Worldwide Corp (OTIS)?
The market capitalisation of Otis Worldwide Corp is $30.8B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Otis Worldwide Corp (OTIS)?
The price-to-sales ratio of Otis Worldwide Corp is 2.04 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Otis Worldwide Corp (OTIS)?
Earnings per share at Otis Worldwide Corp are $4.02 (price ÷ EPS = P/E 19.8). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Otis Worldwide Corp (OTIS)?
The dividend yield of Otis Worldwide Corp is 2.2% (payout 38.3%, on adjusted earnings, reported 42.8%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Otis Worldwide Corp (OTIS)?
The net margin of Otis Worldwide Corp is 10.3% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the EBIT return on assets of Otis Worldwide Corp (OTIS)?
On an EBIT basis the return on assets of Otis Worldwide Corp is 19.4% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Otis Worldwide Corp (OTIS)?
The operating margin of Otis Worldwide Corp is 15.8% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Otis Worldwide Corp (OTIS)?
Revenue at Otis Worldwide Corp is growing +6.1% versus a year earlier (3y avg +1.8%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Otis Worldwide Corp (OTIS)?
Earnings per share at Otis Worldwide Corp are growing +13.7% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Otis Worldwide Corp (OTIS) carry?
The net debt of Otis Worldwide Corp is $7.7B (fiscal year 2025, ≈ 5.3 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Some data
Nov 4, 2026