NYSE · OTIS

Otis Worldwide Corporation

Industrials · Industrial - Machinery

$67.89▼ 2.03% ($1.41)at close

Pre-market$68.44▲ 0.81%7:26 AM ET

52-week

$67.65$94.57

Market cap

$25.84B

P/E

17.30

Volume

3.44M

Shares outstanding

380.67M

What the market price implies · Reverse DCF

To support a price of $67.89, this model requires Stage 1 FCFF to grow by -1.02%/yr over the next 5 years, compounded annually.

Historical FCFF grew by 4.74%/yr over the past 5 years. The required annual growth rate is 5.75 percentage points lower.

Selected forecast · Base scenario

4.74%/yr · Stage 1 default · years 1–5

Annual overrides take precedence over the Stage 1 default.

Market-implied · Other assumptions held fixed

-1.02%/yr · Stage 1 · years 1–5

Stage 1 growth is solved while Stage 2 growth, terminal growth, discount inputs, and annual overrides remain fixed. This is a model-implied requirement, not an analyst forecast.

Valuation

Recommended · Cash-flow DCF

Price used

$67.89

Estimated value / share

$93.79

Base scenario

This estimate is 38.16% above the price used.

USD · TTM ending 2026-06-30

Reported total debt includes capitalised leases (~5% of the total). They are excluded from net debt and from the WACC weights because rent is already charged inside operating income. The Net Debt shown here is therefore lower than the balance-sheet figure elsewhere on this page.

Stage 1 4.74% · Stage 2 3.5% · Discount rate 7.86%

Assumption scenarios, not statistical confidence intervals.

Method, dates & sources

Estimated from future free cash flow, discounted to its value today.

Price timestamp: Sep 10, 2026, 8:00 PM UTC
Financial statement period: TTM ending 2026-06-30
Data refreshed: Sep 11, 2026, 12:29 PM UTC · provider

Why this method?

FCFF is positive, stable, long-lived, and the business looks mature enough that a direct FCFF DCF can use historical cash flow as the anchor.

Is FCFF positive and has it been for 3+ consecutive years? 9 consecutive positive FCFF years are available.

Is FCFF stable (not swinging >30% year to year)? The largest recent FCFF swing is 15.8%.

Do you have 5+ years of positive FCFF history? 9 consecutive positive FCFF years are available.

Is the business model structurally similar to what it should be in 10 years? Revenue growth and margin behavior look mature enough for direct FCFF compounding.

Price vs Fundamentals

Why The Stock Is Moving

Likely multiple compressionHigh confidence

1Y Price: -22.53%Revenue (TTM): 5.24%FCF (TTM): 27%P/FCF: 0th pct

What changed

The stock fell 22.53% over the last year. Revenue grew 5.24% over the trailing twelve months. Operating margin moved from 13.07% to 15.35%. Free cash flow grew 27% over the trailing twelve months.

What the market seems to be pricing

Visible fundamentals weakened far less than the stock price, and the shares now sit around the 0th percentile of their historical P/FCF range. That looks more like a rerating of the multiple than a collapse in the business.

What would invalidate this read

This read changes if operating margin (currently 15.35%) continues to decline, or if revenue growth turns negative. The bull case requires the business to hold its current trajectory.

Performance

Return analysis

Company profile

Otis Worldwide Corporation is a global leader specializing in the manufacturing, installation, and servicing of elevators and escalators, with significant operations in the United States, China, and numerous other international markets.

CEOJudith F. Marks

SectorIndustrials

IndustryIndustrial - Machinery

Employees72,000

IPO dateMar 19, 2020

https://www.otis.com

Market multiples

Forward P/E—

EV/EBITDA18.24

Enterprise value$42.04B

Stock splits

No stock splits recorded for this ticker.

Profitability & growth

Revenue growth7.34%

Gross margin30.17%▲0.4ppvs FY2024

Operating margin15.35%▲0.7ppvs FY2024

ROEN/A

Analyst consensus

RatingBuy

Target price$88.67▲30.61%

Buy

Hold

Sell

Analyst ratings tend to be lagging indicators. Use as one signal among many.

Earnings

Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.

Next report

Oct 28, 2026

Q4 FY26 · EPS est $0.99 · Revenue est $3.84B

View

Dividends

$1.72/shareQuarterly5yr growth streakSafe

OTIS pays a dividend with a 2.53% dividend yield, 5 consecutive years of growth, growing at 14.34% annually, covered 2.2× by free cash flow.

Dividend Yield

2.53%

Annual Div / Share

$1.72

5yr CAGR

+14.34%

Doubles every ~5.2yr

Payout Ratio

43.4%

Safe

Dividend Growth Rate

3yr CAGR

+10.93%

5yr CAGR

+14.34%

Dividend Safety

9/10Safe

Dividend History

Annualized dividend cycles per share

YearAnnual DivYoY

2026$1.72+6.2%

2025$1.62+11.0%

2024$1.46+15.9%

2023$1.26+18.9%

2022$1.06+20.5%

2021$0.88—

Income Projection

Invest

Growth rate:

Reinvest dividends

Today

$25/yr

$2/mo

In 5 yrs

$45/yr+76%

$4/mo

In 10 yrs

$79/yr+211%

$7/mo

Today	In 5 yrs	In 10 yrs
$25/yr $2/mo	$45/yr+76% $4/mo	$79/yr+211% $7/mo

Long-range projections use a capped 12% annual growth assumption.

Yield-on-cost grows from 2.53% → 7.87% over 10yr

Analysis

Dividend Strengths

Well-covered by free cash flow

The dividend is covered 2.2× by free cash flow, indicating the company generates sufficient cash to sustain and potentially grow the payout without straining its finances.

Strong dividend growth rate

The 5-year CAGR of 14.34% meaningfully outpaces inflation, compounding real income growth for long-term holders.

Risks to Watch

No strong risk signal stands out from the latest period pair.

NYSE · OTIS

Otis Worldwide Corporation

Industrials · Industrial - Machinery

$67.89▼ 2.03% ($1.41)at close

Pre-market$68.44▲ 0.81%7:26 AM ET

52-week

$67.65$94.57

Market cap

$25.84B

P/E

17.30

Volume

3.44M

Shares outstanding

380.67M

What the market price implies · Reverse DCF

To support a price of $67.89, this model requires Stage 1 FCFF to grow by -1.02%/yr over the next 5 years, compounded annually.

Historical FCFF grew by 4.74%/yr over the past 5 years. The required annual growth rate is 5.75 percentage points lower.

Selected forecast · Base scenario

4.74%/yr · Stage 1 default · years 1–5

Annual overrides take precedence over the Stage 1 default.

Market-implied · Other assumptions held fixed

-1.02%/yr · Stage 1 · years 1–5

Stage 1 growth is solved while Stage 2 growth, terminal growth, discount inputs, and annual overrides remain fixed. This is a model-implied requirement, not an analyst forecast.

Valuation

Recommended · Cash-flow DCF

Price used

$67.89

Estimated value / share

$93.79

Base scenario

This estimate is 38.16% above the price used.

USD · TTM ending 2026-06-30

Stage 1 4.74% · Stage 2 3.5% · Discount rate 7.86%

Assumption scenarios, not statistical confidence intervals.

Method, dates & sources

Estimated from future free cash flow, discounted to its value today.

Price timestamp: Sep 10, 2026, 8:00 PM UTC
Financial statement period: TTM ending 2026-06-30
Data refreshed: Sep 11, 2026, 12:29 PM UTC · provider

Why this method?

FCFF is positive, stable, long-lived, and the business looks mature enough that a direct FCFF DCF can use historical cash flow as the anchor.

Is FCFF positive and has it been for 3+ consecutive years? 9 consecutive positive FCFF years are available.

Is FCFF stable (not swinging >30% year to year)? The largest recent FCFF swing is 15.8%.

Do you have 5+ years of positive FCFF history? 9 consecutive positive FCFF years are available.

Is the business model structurally similar to what it should be in 10 years? Revenue growth and margin behavior look mature enough for direct FCFF compounding.

Price vs Fundamentals

Why The Stock Is Moving

Likely multiple compressionHigh confidence

1Y Price: -22.53%Revenue (TTM): 5.24%FCF (TTM): 27%P/FCF: 0th pct

What changed

The stock fell 22.53% over the last year. Revenue grew 5.24% over the trailing twelve months. Operating margin moved from 13.07% to 15.35%. Free cash flow grew 27% over the trailing twelve months.

What the market seems to be pricing

What would invalidate this read

This read changes if operating margin (currently 15.35%) continues to decline, or if revenue growth turns negative. The bull case requires the business to hold its current trajectory.

Performance

Return analysis

Company profile

CEOJudith F. Marks

SectorIndustrials

IndustryIndustrial - Machinery

Employees72,000

IPO dateMar 19, 2020

https://www.otis.com

Market multiples

Forward P/E—

EV/EBITDA18.24

Enterprise value$42.04B

Stock splits

No stock splits recorded for this ticker.

Profitability & growth

Revenue growth7.34%

Gross margin30.17%▲0.4ppvs FY2024

Operating margin15.35%▲0.7ppvs FY2024

ROEN/A

Analyst consensus

RatingBuy

Target price$88.67▲30.61%

Buy

Hold

Sell

Analyst ratings tend to be lagging indicators. Use as one signal among many.

Earnings

Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.

Next report

Oct 28, 2026

Q4 FY26 · EPS est $0.99 · Revenue est $3.84B

View

Dividends

$1.72/shareQuarterly5yr growth streakSafe

OTIS pays a dividend with a 2.53% dividend yield, 5 consecutive years of growth, growing at 14.34% annually, covered 2.2× by free cash flow.

Dividend Yield

2.53%

Annual Div / Share

$1.72

5yr CAGR

+14.34%

Doubles every ~5.2yr

Payout Ratio

43.4%

Safe

Dividend Growth Rate

3yr CAGR

+10.93%

5yr CAGR

+14.34%

Dividend Safety

9/10Safe

Dividend History

Annualized dividend cycles per share

YearAnnual DivYoY

2026$1.72+6.2%

2025$1.62+11.0%

2024$1.46+15.9%

2023$1.26+18.9%

2022$1.06+20.5%

2021$0.88—

Income Projection

Invest

Growth rate:

Reinvest dividends

Today

$25/yr

$2/mo

In 5 yrs

$45/yr+76%

$4/mo

In 10 yrs

$79/yr+211%

$7/mo

Today	In 5 yrs	In 10 yrs
$25/yr $2/mo	$45/yr+76% $4/mo	$79/yr+211% $7/mo

Long-range projections use a capped 12% annual growth assumption.

Yield-on-cost grows from 2.53% → 7.87% over 10yr

Analysis

Dividend Strengths

Well-covered by free cash flow

The dividend is covered 2.2× by free cash flow, indicating the company generates sufficient cash to sustain and potentially grow the payout without straining its finances.

Strong dividend growth rate

The 5-year CAGR of 14.34% meaningfully outpaces inflation, compounding real income growth for long-term holders.

Risks to Watch

No strong risk signal stands out from the latest period pair.