Otis Worldwide Corporation

WBAG:OTIS Stock Report

Market Cap: €38.6b

Otis Worldwide Valuation

Is OTIS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of OTIS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: OTIS (€97.66) is trading below our estimate of fair value (€123.11)

Significantly Below Fair Value: OTIS is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for OTIS?

Key metric: As OTIS is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for OTIS. This is calculated by dividing OTIS's market cap by their current earnings.
What is OTIS's PE Ratio?
PE Ratio24.8x
EarningsUS$1.63b
Market CapUS$40.43b

Price to Earnings Ratio vs Peers

How does OTIS's PE Ratio compare to its peers?

The above table shows the PE ratio for OTIS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average26.5x
ANDR Andritz
10.4x8.8%€5.2b
SEM Semperit Holding
15.8x47.0%€235.8m
SCHN Schindler Holding
29.1x6.7%CHF 27.1b
IR Ingersoll Rand
50.6x17.1%US$41.9b
OTIS Otis Worldwide
24.8x5.4%€40.4b

Price-To-Earnings vs Peers: OTIS is good value based on its Price-To-Earnings Ratio (24.8x) compared to the peer average (26.3x).

Price to Earnings Ratio vs Industry

How does OTIS's PE Ratio compare vs other companies in the European Machinery Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
OTIS 24.8xIndustry Avg. 17.5xNo. of Companies30PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: OTIS is expensive based on its Price-To-Earnings Ratio (24.8x) compared to the European Machinery industry average (17.6x).

Price to Earnings Ratio vs Fair Ratio

What is OTIS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

OTIS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.8x
Fair PE Ratio13.8x

Price-To-Earnings vs Fair Ratio: OTIS is expensive based on its Price-To-Earnings Ratio (24.8x) compared to the estimated Fair Price-To-Earnings Ratio (13.8x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst OTIS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€97.66
€96.62
-1.1%
9.8%€110.66€75.37n/a15
Nov ’25€91.64
€91.76
+0.1%
10.1%€110.33€72.63n/a15
Oct ’25€93.06
€89.80
-3.5%
10.0%€107.77€70.95n/a15
Sep ’25€84.78
€89.47
+5.5%
10.5%€107.22€70.59n/a14
Aug ’25€86.92
€92.62
+6.6%
10.2%€110.52€72.76n/a14
Jul ’25€88.80
€91.56
+3.1%
10.5%€110.62€72.82n/a15
Jun ’25€89.42
€91.56
+2.4%
10.5%€110.62€72.82n/a15
May ’25€86.30
€91.96
+6.6%
9.9%€110.93€73.64n/a16
Apr ’25€91.98
€87.86
-4.5%
8.0%€97.15€73.09n/a14
Mar ’25€87.66
€87.86
+0.2%
8.0%€97.15€73.09n/a14
Feb ’25€80.90
€85.30
+5.4%
7.8%€96.60€72.68n/a14
Jan ’25€80.82
€82.04
+1.5%
8.5%€90.80€69.92n/a14
Dec ’24€79.14
€82.87
+4.7%
8.2%€93.26€71.81n/a14
Nov ’24€72.62
€83.99
+15.7%
8.2%€94.49€72.76€91.6414
Oct ’24€76.28
€84.23
+10.4%
8.4%€93.49€71.99€93.0614
Sep ’24€79.62
€83.05
+4.3%
8.0%€91.96€71.73€84.7814
Aug ’24€82.44
€82.23
-0.3%
8.0%€91.05€71.02€86.9214
Jul ’24€82.28
€79.47
-3.4%
8.1%€88.14€67.02€88.8014
Jun ’24€74.62
€80.53
+7.9%
8.3%€89.83€68.31€89.4214
May ’24€76.86
€77.82
+1.3%
8.3%€87.50€66.54€86.3013
Apr ’24€77.26
€77.00
-0.3%
9.4%€88.96€67.42€91.9813
Mar ’24€79.86
€77.00
-3.6%
9.4%€88.96€67.42€87.6613
Feb ’24€76.41
€73.77
-3.5%
8.4%€83.07€62.76€80.9013
Jan ’24€74.02
€74.20
+0.2%
9.6%€85.80€61.96€80.8212
Dec ’23€74.23
€74.57
+0.5%
9.2%€87.17€62.95€79.1412
Nov ’23€72.35
€77.47
+7.1%
9.2%€91.10€65.79€72.6213

Analyst Forecast: Target price is less than 20% higher than the current share price.

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