Otis Worldwide Corporation

NYSE:OTIS Stock Report

Mkt Cap: US$34.9b

We’ve recently updated our valuation analysis.

Otis Worldwide Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

OTIS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3x
Enterprise Value/EBITDA18.5x
PEG Ratio3.3x

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.
CompanyPEEstimated GrowthMarket Cap
Peer Average36.8x
PH Parker-Hannifin
34.6x15.1%US$43.3b
FTV Fortive
31.7x13.0%US$23.9b
DOV Dover
21x6.9%US$22.3b
XYL Xylem
59.9x22.6%US$19.1b
OTIS Otis Worldwide
27.9x8.4%US$34.9b

Price-To-Earnings vs Peers: OTIS is good value based on its Price-To-Earnings Ratio (27.9x) compared to the peer average (36.8x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a11.8%
n/an/an/a

Price-To-Earnings vs Industry: OTIS is expensive based on its Price-To-Earnings Ratio (27.9x) compared to the US Machinery industry average (24.9x)


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 Ratio27.9x
Fair PE Ratio21.2x

Price-To-Earnings vs Fair Ratio: OTIS is expensive based on its Price-To-Earnings Ratio (27.9x) compared to the estimated Fair Price-To-Earnings Ratio (21.2x).


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 ($83.86) is trading above our estimate of fair value ($80.49)

Significantly Below Fair Value: OTIS is trading above our estimate of fair value.


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
CurrentUS$83.86
US$81.54
-2.8%
9.6%US$95.00US$68.00n/a13
Jan ’24US$78.31
US$77.09
-1.6%
9.6%US$90.00US$65.00n/a11
Dec ’23US$78.83
US$76.18
-3.4%
9.0%US$90.00US$65.00n/a11
Nov ’23US$71.51
US$75.75
+5.9%
8.9%US$90.00US$65.00n/a12
Oct ’23US$63.80
US$79.08
+23.9%
8.8%US$90.00US$65.00n/a13
Sep ’23US$72.72
US$79.08
+8.7%
8.8%US$90.00US$65.00n/a13
Aug ’23US$78.28
US$78.69
+0.5%
8.2%US$88.00US$65.00n/a13
Jul ’23US$71.90
US$85.00
+18.2%
11.0%US$100.00US$69.00n/a13
Jun ’23US$73.97
US$85.85
+16.1%
10.2%US$100.00US$73.00n/a13
May ’23US$72.84
US$87.39
+20.0%
10.2%US$100.00US$73.00n/a13
Apr ’23US$76.28
US$91.32
+19.7%
9.5%US$105.00US$73.00n/a13
Mar ’23US$77.65
US$92.55
+19.2%
10.1%US$105.00US$73.00n/a13
Feb ’23US$83.56
US$91.64
+9.7%
11.4%US$105.00US$68.00US$84.5613
Jan ’23US$87.07
US$91.95
+5.6%
11.5%US$105.00US$68.00US$78.3113
Dec ’22US$80.45
US$91.18
+13.3%
12.7%US$105.00US$68.00US$78.8313
Nov ’22US$80.92
US$90.79
+12.2%
12.3%US$105.00US$68.00US$71.5113
Oct ’22US$82.50
US$93.25
+13.0%
10.6%US$105.00US$68.00US$63.8012
Sep ’22US$91.50
US$93.18
+1.8%
11.1%US$105.00US$68.00US$72.7211
Aug ’22US$89.55
US$90.45
+1.0%
10.8%US$102.00US$68.00US$78.2811
Jul ’22US$82.08
US$81.70
-0.5%
11.2%US$90.00US$65.00US$71.9010
Jun ’22US$78.41
US$81.20
+3.6%
10.9%US$90.00US$65.00US$73.9710
May ’22US$77.87
US$81.20
+4.3%
10.9%US$90.00US$65.00US$72.8410
Apr ’22US$69.26
US$74.10
+7.0%
10.5%US$85.00US$62.00US$76.2810
Mar ’22US$64.93
US$70.89
+9.2%
14.4%US$81.00US$49.00US$77.659
Feb ’22US$64.55
US$69.80
+8.1%
13.9%US$81.00US$49.00US$83.5610

Analyst Forecast: Target price is lower than the current share price.


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