Otis Worldwide Corporation (OTIS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+2.5%

$79.74

vs $77.81 price

Levered DCF

$75.19

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

2.95

Grey zone

Rating

B-

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	24.75×	22.59×	26.16×	26.28×	29.92×	32.32×	17.56×	18.68×
P/B	-6.38×	-7.67×	-7.48×	-6.75×	-10.27×	-7.58×	11.53×	12.49×
P/S	2.38×	2.61×	2.59×	2.4×	2.6×	2.29×	1.49×	1.52×
EV / EBITDA	18.24×	19.55×	17.56×	17.2×	18.9×	18.57×	9.39×	9.03×
Gross margin	30.3%	29.9%	29.5%	28.6%	29.3%	29.6%	29.2%	28.9%
Operating margin	14.8%	14.1%	15.4%	14.9%	14.7%	12.8%	13.8%	14.2%
Net margin	9.6%	11.5%	9.9%	9.2%	8.7%	7.1%	8.5%	8.1%
Current ratio	0.85×	0.99×	0.99×	0.9×	1.32×	0.97×	1.05×	1.06×
Debt / equity	-1.62×	-1.8×	-1.48×	-1.48×	-2.15×	-1.68×	0.33×	0.02×
Interest coverage	10.88×	-64.77×	14.57×	14.22×	15.5×	13.43×	46.51×	49.59×
Dividend yield	1.9%	1.6%	1.5%	1.4%	1.1%	0.9%	0.0%	0.0%
Payout ratio	46.7%	36.8%	38.3%	37.1%	31.5%	28.7%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	-25.7%	-33.9%	-28.6%	-25.7%	-34.4%	-23.5%	65.6%	66.9%
Return on invested capital	39.6%	33.9%	42.6%	39.1%	24.5%	23.4%	27.5%	30.4%
Return on assets	13.0%	14.5%	13.9%	12.8%	10.1%	8.5%	11.5%	11.5%
Free cash flow yield	4.2%	3.9%	4.0%	4.4%	4.3%	4.4%	6.8%	7.0%
Earnings yield	4.0%	4.4%	3.8%	3.8%	3.3%	3.1%	5.7%	5.4%
Enterprise value	$42B	$43.6B	$42.8B	$38.9B	$43.5B	$34B	$18.7B	$18.3B
Net debt / EBITDA	3.32×	2.89×	2.47×	2.66×	2.71×	2.58×	-0.44×	-0.64×
Cash conversion cycle (days)	55	58	63	66	63	71	64	67