---
title: Otis Worldwide (OTIS) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/otis
ticker: OTIS
as_of: 2026-10-17
sector: Industrials
industry: Industrial - Machinery
---
# Otis Worldwide (OTIS)

Otis Worldwide (OTIS) closed at $71.33 on Oct 16, 2026, overvalued by 2% vs its model value of $70.11 (from a five-year discounted cash flow).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $71.33 (Oct 16, 2026) |
| Model value (from a five-year discounted cash flow) | $70.11 |
| Price vs model | overvalued by 2% vs model |
| Range of that model | $40.22 – $180.91 |
| Market value | $27.2B |
| P/E (fiscal 2025) | 20.4 |
| Net margin (fiscal 2025) | 9.6% |
| Free cash flow (fiscal 2025) | $1.4B |
| Dividend yield (trailing twelve months) | 2.41% |
| Beta | 0.86 |
| Cost of capital (WACC) | 7.70% |
| Business classification | Dividend Payer (Low/slowing growth (~1% recent), Moderate margins (10% net margin), Pays dividends, Highly cyclical earnings, High leverage (D/E 5.0x), Strong FCF yield (5.3%)) |

## Dividends

| Figure | Value |
| --- | ---: |
| Trailing dividend yield | 2.41% |
| Dividends per share, last 12 months | $1.72 |
| Dividends / free cash flow (fiscal 2025) | 44.8% |
| Raised | 5+ years in a row |
| Growth over 5 years | 14.3% a year |
| Latest payment | $0.44, ex-date Aug 14, 2026, paid Sep 11, 2026 |

| Year of payments | Dividends per share |
| --- | ---: |
| To Aug 19, 2021 | $0.88 |
| To Aug 18, 2022 | $1.06 |
| To Aug 17, 2023 | $1.26 |
| To Aug 16, 2024 | $1.46 |
| To Aug 15, 2025 | $1.62 |
| Trailing twelve months (to Aug 14, 2026) | $1.72 |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | primary | $70.11 | $40.22 | $180.91 |
| DCF · Perpetuity growth · 10y | cross check | $76.58 | $45.77 | $189.11 |
| DCF · EBITDA exit · 5y | cross check | $47.32 | $22.82 | $76.37 |
| DCF · EBITDA exit · 10y | cross check | $57.04 | $32.17 | $90.75 |
| P/E · peers | cross check | $55.34 | $55.34 | $55.34 |
| P/E · own history | cross check | $100.12 | $88.14 | $107.32 |
| PEG | sanity check | $56.87 | $56.87 | $56.87 |
| EV/EBITDA · peers | cross check | $32.81 | $32.81 | $32.81 |
| EV/Revenue · peers | cross check | $37.66 | $37.66 | $37.66 |
| Earnings power value | cross check | $32.02 | $23.97 | $43.96 |
| Dividend discount | cross check | $44.90 | $31.08 | $66.67 |

## Insider activity (SEC Form 4)

No open-market insider buys or sales filed in the past 90 days.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| Sep 2, 2026 | Gosk Kimberly Shannon | EVP & CPO | Option/RSU exercise | 933 | — |
| Sep 2, 2026 | Gosk Kimberly Shannon | EVP & CPO | Tax withholding | 274 | $19,407.4 |
| Sep 2, 2026 | Gosk Kimberly Shannon | EVP & CPO | Option/RSU exercise | 933 | $0 |
| Aug 23, 2026 | Mendez Echevarria Maria Cristina | EVP & CFO | Option/RSU exercise | 2,137 | — |
| Aug 23, 2026 | Mendez Echevarria Maria Cristina | EVP & CFO | Tax withholding | 838 | $59,908.6 |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Sep 15, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers; 7.01 Regulation FD Disclosure; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1781335/000114036126036566/ef20081992_8k.htm |
| Jul 23, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/1781335/000178133526000113/otis-20260630.htm |
| Jul 22, 2026 | 8-K | 2.02 Results of Operations (Earnings); 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1781335/000178133526000110/otis-20260722.htm |
| May 29, 2026 | 8-K | 5.07 Submission of Matters to a Shareholder Vote | https://www.sec.gov/Archives/edgar/data/1781335/000178133526000102/otis-20260527.htm |
| May 7, 2026 | DEFA14A | Additional proxy materials | https://www.sec.gov/Archives/edgar/data/1781335/000114036126019556/ef20072694_defa14a.htm |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| Bridgewater | 2026-06-30 | 364,278 | $26.1M |
| First Eagle | 2026-06-30 | 205,863 | $14.7M |
| Thomas Gayner | 2026-06-30 | 133,620 | $9.6M |
| Dodge & Cox | 2026-06-30 | 5,210 | $373,036 |

4 tracked managers in all.

## About

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. The company's business is organized into two primary divisions: New Equipment and Service. Its New Equipment segment is responsible for the design, fabrication, sale, and fitting of a diverse array of passenger and freight elevators, escalators, and moving walkways, catering to residential and commercial properties, as well as large-scale infrastructure endeavors. Conversely, the Service segment offers extensive maintenance, repair, and modernization services aimed at upgrading existing elevator and escalator systems. Otis maintains a substantial global service footprint, employing approximately 34,000 service technicians across roughly 1,400 branches and…

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Source: https://sweetvaluelab.com/stocks/otis (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.