What is OTIS's intrinsic value?

TickerWorth's valuation lenses put Otis Worldwide Corporation (OTIS) between $25.64 and $112.97 per share, versus a market price of $71.33. They disagree too widely for us to state a single fair value, so we publish the range.

Is OTIS overvalued or undervalued?

At $71.33 the price sits inside a range too wide to call either way. We don't call OTIS overvalued or undervalued from a range this wide. This is an educational estimate, not advice.

What discount rate is used for OTIS?

A WACC of 8.3% and a terminal growth rate of 2.5%.

Is Otis Worldwide stock undervalued?

TickerWorth's fair-value range for Otis Worldwide Corporation (OTIS) is $25.64 – $112.97 against a market price of $71.33. Too wide to call. We publish a range here, not one number, so we do not call it over- or undervalued. This is a model estimate, not investment advice.

Otis Worldwide (OTIS) DCF valuation and fair value

Our fair-value range for Otis Worldwide Corporation (OTIS) is $25.64 – $112.97, built on a 8.3% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.

What growth is priced into Otis Worldwide stock?

Today's price implies revenue growth of 4.7% a year for 5 years; our model assumes 4.4% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $71.33. A model estimate, not investment advice.

Otis Worldwide (OTIS) insider trading

The most recent insider filing (SEC Form 4) for Otis Worldwide Corporation (OTIS): Gosk Kimberly Shannon, EVP & CPO, option exercise on 2026-09-02. The latest filings are listed on this page. A disclosure, not a signal to trade.

OTIS · Intrinsic value

Is Otis Worldwide Corporation (OTIS) overvalued or undervalued?

Name: Otis Worldwide Corporation (OTIS) DCF intrinsic value
Creator: TickerWorth

As of Oct 19, 2026, TickerWorth's valuation lenses put Otis Worldwide Corporation (OTIS) at $25.64 – $112.97, too broad a range to say where the delayed market price of $71.33 sits in it, so we do not call it over- or undervalued. It is a model estimate, and every input behind it is sourced below.

Model by Miraaj Patel · generated from a hand-researched model · Updated Oct 19, 2026 · How these pages are made

Open full OTIS analysis

What is OTIS worth?

Backup data source

This price comes from our backup market-data feed.

Fair-value range: $25.64 – $112.97
Market price: $71.33
Gap to fair value: —
Verdict: Too wide to call

Price as of 19 Oct 2026, 13:16 UTC · Prices are delayed.Our valuation lenses disagree too widely on this company for us to publish a single number, so we publish the range instead. We do not call it over- or undervalued from a spread this wide.

Fair-value range against the delayed market price: Too wide to call.

Reverse DCF: Today's price implies revenue growth of 4.7% a year for 5 years; our model assumes 4.4% a year on average over the same horizon.

What is OTIS's TickerWorth Score?

C48/100

Middle of the pack — real strengths and real weaknesses

Compared with Industrials companies in US

Its strongest point: looks cheap on the numbers. Its weakest: balance sheet looks stretched.

Value · 73 of 100
Cheaper than 73% of Industrials companies in US
Price vs worth · 54 of 100
Quality · 51 of 100
More profitable than 51% of Industrials companies in US
Financial health · 19 of 100
Financially stronger than 19% of Industrials companies in US
Growth · 32 of 100
Growing faster than 32% of Industrials companies in US
Momentum · 36 of 100
Outperformed 36% of Industrials companies in US over the past year

Confidence: Medium confidence · Scored 19 Oct 2026, 13:16 UTC

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Where the numbers come from

Hand-researched model

What the modeller flagged

YEAR-1 FCF IS ~20% ABOVE OTIS'S LAST REPORTED FREE CASH FLOW ($1,737M modeled vs FY2025's $1,444M) — at the 20% threshold, so stated. The gap is decomposable: the model's FCF is UNLEVERED (before ~$150M of after-tax interest) and NORMALIZED (before ~$140M of one-off cash: UpLift payments $97M and RTX separation payments $258M, less $216M of German tax refunds). Otis's own adjusted FCF of $1,583M plus after-tax interest is ~$1,730M — it ties. AGAINST FY2026 GUIDANCE the model is mildly generous: guided adjusted FCF of $1.50-1.55B plus ~$130M after-tax interest is ~$1.65-1.70B, so Year 1 sits ~$40-90M above management's number.
TERMINAL VALUE IS ~77% OF ENTERPRISE VALUE (implied terminal EV/EBITDA ~12.4x). Typical for a steady business; the answer is mostly a bet on Service compounding after 2030, which is the bull case's whole premise.
MARGIN RECOVERY IS ASSUMED, NOT GUIDED. Management has cut its FY2026 outlook twice: January guided adjusted EPS up mid-to-high single digits (from $4.05) and FCF $1.6-1.7B; April cut to adjusted operating profit ~$2.5B and EPS $4.20-4.24; July cut again to ~$2.4B and EPS $4.01-4.05, roughly flat on FY2025. Years 2-5 climb from 15.5% back to FY2025's 16.5%. If margins instead stay at 15.5% forever, the value falls ~$4.80/share.
THE SITE'S AUTOMATIC MODEL: the brief cited an automatic gap of about +83%. Rebuilding the automatic model with today's code and feed (2026-10-05) gives ~$62 per share, about -6% vs today's price, close to this researched value — so the +83% could not be reproduced and was most likely a stale or differently-sourced figure. The rebuilt automatic model differs from this one mainly in using GAAP 14.8% margins held flat, a 21% tax rate, FY2025 net debt with no pension or noncontrolling-interest claims, and the FY2025 share count (394.9M vs 383.5M).
COST OF DEBT IS THE MARGINAL ~6.2%, NOT THE 3.1% AVERAGE in the 10-Q — worth ~$10/share. Deliberately conservative for a perpetuity.

Why OTIS gets a range, not one number

At a recent price of $71.33, Otis Worldwide Corporation (OTIS) sits inside a range too wide to call either way: our valuation lenses put the business somewhere between $25.64 and $112.97 per share. They disagree too widely for us to state a single fair value. We publish the range rather than a midpoint because a number that precise would claim more than the methods can support. This is an educational model, not a price target or a recommendation.

Read the full reasoning

The valuation discounts Otis Worldwide Corporation's projected free cash flows at a weighted-average cost of capital (WACC) of 8.3%, with a long-run terminal growth rate of 2.5%. About 77% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.

Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly 4.7% annual revenue growth for OTIS. Our base case instead compounds to about 4.4% a year over the same forecast, so the market's implied growth is broadly in line with our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.

Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, OTIS's modeled DCF value ranges from about $39.64 to $125.47 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.

How to read this page: the DCF fair value is what Otis Worldwide Corporation would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of OTIS's intrinsic value. Figures update as new filings and prices come in.

Every input behind OTIS's DCF

Input	Value	Source
Base-year revenueOtis FY2025 10-K (accession 0001781335-26-000011, filed 2026-02-05): us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax, FY2025 = $14,431M, +1.2% on FY2024's $14,261M with FLAT organic growth. The mix is the whole story: Service $9,442M (+6.2%, 65% of sales) vs New Equipment $4,989M (-7.0%, 35%), per the Q4 2025 release segment table. UNCHANGED as the base; the new quarters belong in the forecast. CROSS-CHECK: H1 2026 net sales $7,425M, +6.9% on H1 2025's $6,945M (organic +4%, the rest currency); Service +11% (organic +7%), New Equipment flat (organic -3%, China down high-teens in Q2).	$14,431,000,000	Otis FY2025 10-K (accession 0001781335-26-000011, filed 2026-02-05): us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax, FY2025 = $14,431M, +1.2% on FY2024's $14,261M with FLAT organic growth. The mix is the whole story: Service $9,442M (+6.2%, 65% of sales) vs New Equipment $4,989M (-7.0%, 35%), per the Q4 2025 release segment table. UNCHANGED as the base; the new quarters belong in the forecast. CROSS-CHECK: H1 2026 net sales $7,425M, +6.9% on H1 2025's $6,945M (organic +4%, the rest currency); Service +11% (organic +7%), New Equipment flat (organic -3%, China down high-teens in Q2).
Base EBIT marginOtis Q4 2025 earnings release, 8-K Ex-99 (accession 0001781335-26-000004, filed 2026-01-28): DERIVED, and the first judgement call. GAAP operating profit was $2,133M (14.8%); Otis's adjusted operating profit was $2,434M (16.9%). I use neither: $2,434M LESS the $54M of 'other restructuring' = $2,380M / $14,431M = 16.49%, rounded to 16.5%. Why: Otis books 'other restructuring' every single year ($40M FY2024, $54M FY2025, $18M H1 2026), so it is a running cost and stays IN. What I strip out is genuinely non-recurring: UpLift restructuring $76M + UpLift transformation $69M (the program has ended — zero UpLift charges in H1 2026), $70M of separation-related payments owed to RTX under the 2020 spin Tax Matters Agreement (a tax indemnity, not an operating cost), $21M litigation and $10M impairment. This base margin is display-only in the engine (the forecast margins drive value) but it sets the cyclical-flag peak. CROSS-CHECK: H1 2026 on the same basis is $1,137M adjusted - $18M other restructuring = $1,119M / $7,425M = 15.1% — 140bp BELOW the base, which is why Year 1 steps down.	16.5%	Otis Q4 2025 earnings release, 8-K Ex-99 (accession 0001781335-26-000004, filed 2026-01-28): DERIVED, and the first judgement call. GAAP operating profit was $2,133M (14.8%); Otis's adjusted operating profit was $2,434M (16.9%). I use neither: $2,434M LESS the $54M of 'other restructuring' = $2,380M / $14,431M = 16.49%, rounded to 16.5%. Why: Otis books 'other restructuring' every single year ($40M FY2024, $54M FY2025, $18M H1 2026), so it is a running cost and stays IN. What I strip out is genuinely non-recurring: UpLift restructuring $76M + UpLift transformation $69M (the program has ended — zero UpLift charges in H1 2026), $70M of separation-related payments owed to RTX under the 2020 spin Tax Matters Agreement (a tax indemnity, not an operating cost), $21M litigation and $10M impairment. This base margin is display-only in the engine (the forecast margins drive value) but it sets the cyclical-flag peak. CROSS-CHECK: H1 2026 on the same basis is $1,137M adjusted - $18M other restructuring = $1,119M / $7,425M = 15.1% — 140bp BELOW the base, which is why Year 1 steps down.
Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast	5% → 4% → 4% → 4% → 4%	ESTIMATEAssumption — TickerWorth's 5-year explicit forecast
Risk-free rateUS 10Y Treasury constant maturity (FRED DGS10): 5.24% on 2026-10-01, the latest published observation. Program-wide input shared by every researched model in this run.	5.2%	US 10Y Treasury constant maturity (FRED DGS10): 5.24% on 2026-10-01, the latest published observation. Program-wide input shared by every researched model in this run.
BetaYahoo Finance 5Y-monthly beta via yfinance: Published 5Y-monthly beta 0.859, used as-is. Considered and rejected a normalization: the 2020 spin gives Otis a little over six years of its own return history, so the 5Y window is clean of the UTC period, and 0.86 is plausible for a business whose earnings are two-thirds recurring maintenance contracts. Each 0.1 of beta moves the value about $5.30/share; the reverse-DCF in the explainer reports the beta that would justify today's price.	0.86	Yahoo Finance 5Y-monthly beta via yfinance: Published 5Y-monthly beta 0.859, used as-is. Considered and rejected a normalization: the 2020 spin gives Otis a little over six years of its own return history, so the 5Y window is clean of the UTC period, and 0.86 is plausible for a business whose earnings are two-thirds recurring maintenance contracts. Each 0.1 of beta moves the value about $5.30/share; the reverse-DCF in the explainer reports the beta that would justify today's price.
Terminal growthESTIMATEAssumption — house default: House default 2.5% (roughly long-run nominal GDP), kept for comparability. Defensible for Otis specifically: the installed base of ~2.5 million maintained units only grows, elevators are legally required to be maintained in most markets, and aging buildings feed modernization. Must remain < WACC (~8.3%). 2.0% would take ~$5.60/share off; 3.0% would add ~$6.70.	2.5%	ESTIMATEAssumption — house default: House default 2.5% (roughly long-run nominal GDP), kept for comparability. Defensible for Otis specifically: the installed base of ~2.5 million maintained units only grows, elevators are legally required to be maintained in most markets, and aging buildings feed modernization. Must remain < WACC (~8.3%). 2.0% would take ~$5.60/share off; 3.0% would add ~$6.70.
Diluted sharesOtis Q2 2026 earnings release, 8-K Ex-99 (accession 0001781335-26-000110) / Q2 2026 10-Q: Q2 2026 weighted-average diluted shares 383.5M (H1 2026 386.4M; FY2025 394.9M). The count FALLS ~3% a year: Otis bought back ~$800M of stock in H1 2026 and ~$800M in FY2025. Shares outstanding at 2026-07-15 were already 380.7M. Using the Q2 diluted figure rather than the cover count is the house treatment for SBC dilution; it is slightly conservative given the continuing buyback.	384M	Otis Q2 2026 earnings release, 8-K Ex-99 (accession 0001781335-26-000110) / Q2 2026 10-Q: Q2 2026 weighted-average diluted shares 383.5M (H1 2026 386.4M; FY2025 394.9M). The count FALLS ~3% a year: Otis bought back ~$800M of stock in H1 2026 and ~$800M in FY2025. Shares outstanding at 2026-07-15 were already 380.7M. Using the Q2 diluted figure rather than the cover count is the house treatment for SBC dilution; it is slightly conservative given the continuing buyback.
Market priceBackup price feed · as of 2026-10-19 13:16 UTC	$71.33	Backup price feed · as of 2026-10-19 13:16 UTC

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What does Otis Worldwide Corporation do?

What does it do?

Otis Worldwide Corporation engages in manufacturing, installation, and servicing of elevators and escalators in the United States, China, and internationally. The company operates in two segments, New Equipment and Service. It operates in the Specialty Industrial Machinery industry (Industrials sector), headquartered in United States. The company employs roughly 72,000 people.

How does it make money?

The business turns $14.9B in annual revenue into profit. Out of every $100 of sales, about $15 is left as operating profit (operating margin of 15.1%), after a 30% gross margin on the products/services it sells. After all costs, taxes and interest, 10.2% of revenue becomes bottom-line net profit.

Is it financially healthy?

Financially it looks stretched: may struggle to cover its short-term bills (0.8× current ratio), and is currently profitable.

Who at OTIS filed insider trades?

Recent insider filings for Otis Worldwide Corporation
Date	Insider	Relationship	What happened	Value	Filing
2 Sept 2026	Gosk Kimberly Shannon	EVP & CPO	Option exercise	—	Form 4 for Gosk Kimberly Shannon (opens sec.gov in a new tab)
2 Sept 2026	Gosk Kimberly Shannon	EVP & CPO	Shares withheld (tax)	$19,407.42	Form 4 for Gosk Kimberly Shannon (opens sec.gov in a new tab)
23 Aug 2026	Mendez Echevarria Maria Cristina	EVP & CFO	Option exercise	—	Form 4 for Mendez Echevarria Maria Cristina (opens sec.gov in a new tab)
23 Aug 2026	Mendez Echevarria Maria Cristina	EVP & CFO	Shares withheld (tax)	$59,908.62	Form 4 for Mendez Echevarria Maria Cristina (opens sec.gov in a new tab)
2 Jun 2026	Armas Joseph Jay	President, Otis Americas	Option exercise	—	Form 4 for Armas Joseph Jay (opens sec.gov in a new tab)
2 Jun 2026	Armas Joseph Jay	President, Otis Americas	Shares withheld (tax)	$29,608.93	Form 4 for Armas Joseph Jay (opens sec.gov in a new tab)

A disclosure, not a signal to trade. Source: SEC EDGAR (Form 4). Older filings and the 90-day buying-and-selling read are part of Pro. See plans

Common questions

What is OTIS's intrinsic value?
TickerWorth's valuation lenses put Otis Worldwide Corporation (OTIS) between $25.64 and $112.97 per share, versus a market price of $71.33. They disagree too widely for us to state a single fair value, so we publish the range.
Is OTIS overvalued or undervalued?
At $71.33 the price sits inside a range too wide to call either way. We don't call OTIS overvalued or undervalued from a range this wide. This is an educational estimate, not advice.
What discount rate is used for OTIS?
A WACC of 8.3% and a terminal growth rate of 2.5%.
Is Otis Worldwide stock undervalued?
TickerWorth's fair-value range for Otis Worldwide Corporation (OTIS) is $25.64 – $112.97 against a market price of $71.33. Too wide to call. We publish a range here, not one number, so we do not call it over- or undervalued. This is a model estimate, not investment advice.
Otis Worldwide (OTIS) DCF valuation and fair value
Our fair-value range for Otis Worldwide Corporation (OTIS) is $25.64 – $112.97, built on a 8.3% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into Otis Worldwide stock?
Today's price implies revenue growth of 4.7% a year for 5 years; our model assumes 4.4% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $71.33. A model estimate, not investment advice.
Otis Worldwide (OTIS) insider trading
The most recent insider filing (SEC Form 4) for Otis Worldwide Corporation (OTIS): Gosk Kimberly Shannon, EVP & CPO, option exercise on 2026-09-02. The latest filings are listed on this page. A disclosure, not a signal to trade.