What Is OTIS Fair Value?
Otis Worldwide (OTIS) fair value estimate using multiple valuation models, updated daily.
As of July 16, 2026, Otis Worldwide (OTIS) has a composite fair value estimate of $68.69 based on four valuation models: DCF (47% weight), Graham Number (0% weight), PEG (33% weight), and DDM (20% weight). The current market price is $72.20, suggesting the stock is fair value by 4.9%.
Data as of July 16, 2026 (today)
Composite Fair Value
Fair Value3 of 4 models$68.69
vs. current price of $72.20(-4.9%)
How Is OTIS Fair Value Calculated?
Four independent models estimate what OTIS is worth. Each uses different inputs and assumptions. The composite blends them by weight.
OTIS Intrinsic Value
Forward-looking models based on future cash flows
DCF (Discounted Cash Flow)
47% weightEstimates how much cash the company will generate over the next 10 years, then calculates what all that future cash is worth in today's dollars. Includes a 15% safety cushion. Try the standalone DCF calculator →
$87.66
+21.4%Undervalued
Inputs used
DDM (Dividend Discount Model)
20% weightIf a company pays you dividends, this model asks: how much are all those future dividend payments worth today? Only works for stocks that pay dividends. Try the intrinsic value calculator →
$32.91
-54.4%Overvalued
Inputs used
OTIS Fair Value
Current fundamentals: earnings, assets, and growth rate
Graham Number (Value Investing)
0% weightCreated by legendary investor Benjamin Graham. It looks at two things: how much the company earns (EPS) and what its assets are worth (Book Value), then calculates the maximum price a careful investor should pay. Try the fair value calculator →
N/A
Requires positive EPS and book value. Otis Worldwide currently has negative earnings, so the Graham formula cannot be applied.
Inputs used
PEG (Price/Earnings to Growth)
33% weightChecks if you're paying a fair price for the company's growth. A fast-growing company deserves a higher price than a slow one. This model finds the right price based on how fast earnings are growing.
$41.94
-41.9%Overvalued
Inputs used
What If You Change the Assumptions?
Drag the sliders to test different scenarios. Tap the ? buttons to learn what each input means.
Your DCF Fair Value
Current price $72.20 is 21.4% below this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $1.82B | $1.68B |
| Year 2 | $1.96B | $1.68B |
| Year 3 | $2.12B | $1.68B |
| Year 4 | $2.29B | $1.68B |
| Year 5 | $2.48B | $1.67B |
| Year 6 | $2.68B | $1.67B |
| Year 7 | $2.89B | $1.67B |
| Year 8 | $3.13B | $1.67B |
| Year 9 | $3.38B | $1.67B |
| Year 10 | $3.65B | $1.67B |
| Terminal Value | $66.18B | $30.22B |
What Are OTIS's Key Financial Metrics?
Earnings & Growth
Current Price
$72.20
EPS (TTM)
$3.74
Forward P/E
15.3
Profit Margin
10.1%
Cash & Balance Sheet
Free Cash Flow
1.7B
EBITDA
2.5B
Book Value
-$14.73
Total Debt
8.2B
What Do Analysts Say About OTIS?
Low
$83.00
Average
$96.00
High
$120.00
Upside
+33.0%
OTIS Fair Value FAQ
What is the fair value of OTIS?
Based on our composite model (DCF 35%, Graham 25%, PEG 25%, DDM 15%), OTIS's estimated fair value is $68.69. The stock is currently trading at $72.20, which makes it fair value by our analysis.
How is OTIS's fair value calculated?
We use four valuation methods: Discounted Cash Flow (DCF), Graham Number, PEG-based Fair Value, and Dividend Discount Model (for dividend-paying stocks). The composite score weights DCF at 35%, Graham and PEG at 25% each, and DDM at 15%. When a model can't be applied, its weight is redistributed proportionally.
Is OTIS overvalued or undervalued?
Based on our analysis, OTIS is fair value. The current price of $72.20 is 4.9% above our estimated fair value of $68.69.
What do Wall Street analysts say about OTIS?
12 analysts cover Otis Worldwide with a consensus rating of "Buy." The average price target is $96.00, ranging from $83.00 to $120.00. This implies 33.0% upside from the current price.