Otis Worldwide (OTIS) Valuation Spotlight After Key Wins in Cambodia and India

Otis Worldwide (OTIS) is having an eventful month. The company landed a high-profile role in Cambodia’s new Techo International Airport and secured a sizable contract to outfit major residential towers in Hyderabad, India. Both moves spotlight Otis’s global reach and ongoing growth opportunities.

See our latest analysis for Otis Worldwide.

Otis shares have seen modest momentum lately, with the 1-month share price up 1.7% and a healthy 4.6% gain over the past 90 days. Larger contracts like the Cambodian airport project and Hyderabad towers signal expanding global reach. However, the one-year total shareholder return is still down 7.6%, which serves as a reminder that short-term bursts can occur while long-term performance fluctuates. Looking further out, long-term holders have enjoyed a total shareholder return of 61.5% over five years, highlighting steady value creation for patient investors.

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With shares still trailing their one-year highs despite fresh wins and a solid multi-year track record, investors are left to wonder if Otis Worldwide is undervalued or if the market has already priced in most of the growth ahead.

Most Popular Narrative: 9.2% Undervalued

Otis Worldwide’s widely followed narrative puts its fair value at $101.29, notably above the last close price of $91.95. This sets a bullish tone as investors question whether the market has fully appreciated Otis’s forward prospects.

"Ongoing investments in energy-efficient, connected elevator systems and services capitalize on global demand for sustainable and smart building solutions, allowing Otis to compete for premium projects and command higher pricing, supporting both revenue growth and margin improvement."

Read the complete narrative.

Curious what key forecast drives this premium valuation? The narrative hinges on a combination of ambitious growth for margins and earnings, plus a multiple that surpasses what many industry names receive. The financial leap is bolder than it first appears. Want to know the core assumptions?

Result: Fair Value of $101.29 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent weakness in new equipment sales in China or a slower rebound in commercial real estate demand could put pressure on Otis's long-term growth story.

Find out about the key risks to this Otis Worldwide narrative.

Build Your Own Otis Worldwide Narrative

Feel like taking the analysis into your own hands? Dive into our data and craft your unique Otis Worldwide outlook in just a few minutes. Do it your way

A great starting point for your Otis Worldwide research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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