Latest Ratios: P/E Ratio 19.5x · EV/EBITDA 14.6x · ROE N/A. (2017–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $26.0B | $34.4B | $37.5B | $37.1B | $33.1B | $37.6B | $29.4B | — | — | — |
| Enterprise Value | $33.7B | $42.0B | $43.9B | $43.1B | $39.1B | $43.8B | $34.1B | — | — | — |
| P/E Ratio → | 19.52 | 24.96 | 22.75 | 26.39 | 26.46 | 30.13 | 32.48 | — | — | — |
| P/S Ratio | 1.80 | 2.38 | 2.63 | 2.61 | 2.42 | 2.63 | 2.30 | — | — | — |
| P/B Ratio | — | — | — | — | — | — | — | — | — | — |
| P/FCF | 18.01 | 23.81 | 26.06 | 24.91 | 22.92 | 23.56 | 22.63 | — | — | — |
| P/OCF | 16.30 | 21.55 | 23.96 | 22.80 | 21.23 | 21.46 | 19.84 | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.91 | 3.08 | 3.04 | 2.86 | 3.06 | 2.67 | — | — | — |
| EV / EBITDA | 14.58 | 18.22 | 20.05 | 18.13 | 17.60 | 18.95 | 18.62 | — | — | — |
| EV / EBIT | 15.78 | 19.74 | 21.40 | 19.19 | 18.90 | 20.88 | 20.79 | — | — | — |
| EV / FCF | — | 29.12 | 30.55 | 28.96 | 27.09 | 27.47 | 26.27 | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 30.3% | 30.3% | 29.9% | 29.5% | 28.6% | 29.3% | 29.6% | 29.2% | 28.9% | 30.0% |
| Operating Margin | 14.8% | 14.8% | 14.1% | 15.4% | 14.9% | 14.7% | 12.8% | 13.8% | 14.2% | 15.5% |
| Net Profit Margin | 9.6% | 9.6% | 11.5% | 9.9% | 9.2% | 8.7% | 7.1% | 8.5% | 8.1% | 5.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| ROE | — | — | — | — | — | — | — | 49.2% | 43.0% | 23.9% |
| ROA | 12.6% | 12.6% | 15.4% | 14.1% | 11.3% | 10.8% | 8.9% | 11.9% | 11.5% | 7.0% |
| ROIC | 78.1% | 78.1% | 99.5% | 122.8% | 66.3% | 66.5% | 83.1% | 115.4% | 135.0% | 127.6% |
| ROCE | 65.0% | 65.0% | 55.7% | 66.1% | 45.1% | 41.9% | 39.3% | 44.5% | 45.9% | 46.1% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | — | — | — | — | — | — | — | 0.24 | 0.01 | 0.01 |
| Debt / EBITDA | 3.79 | 3.79 | 3.99 | 3.07 | 3.24 | 3.37 | 3.55 | 0.28 | 0.01 | 0.01 |
| Net Debt / Equity | — | — | — | — | — | — | — | -0.38 | -0.59 | -0.58 |
| Net Debt / EBITDA | 3.32 | 3.32 | 2.94 | 2.54 | 2.71 | 2.69 | 2.58 | -0.44 | -0.64 | -0.73 |
| Debt / FCF | — | 5.30 | 4.48 | 4.05 | 4.17 | 3.91 | 3.64 | -0.67 | -0.94 | -1.17 |
| Interest Coverage | 10.87 | 10.87 | 66.16 | 14.98 | 14.48 | 15.42 | 13.43 | 46.51 | 49.59 | 49.92 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.85 | 0.85 | 0.99 | 0.99 | 0.90 | 1.32 | 0.97 | 1.05 | 1.06 | 1.12 |
| Quick Ratio | 0.77 | 0.77 | 0.92 | 0.89 | 0.81 | 1.22 | 0.87 | 0.95 | 0.94 | 0.89 |
| Cash Ratio | 0.14 | 0.14 | 0.30 | 0.20 | 0.17 | 0.25 | 0.27 | 0.27 | 0.25 | 0.32 |
| Asset Turnover | — | 1.35 | 1.26 | 1.40 | 1.39 | 1.16 | 1.19 | 1.35 | 1.41 | 1.36 |
| Inventory Turnover | 16.41 | 16.41 | 17.96 | 16.37 | 15.83 | 16.25 | 13.62 | 16.27 | 14.43 | 7.82 |
| Days Sales Outstanding | — | 110.96 | 105.81 | 109.30 | 107.25 | 96.55 | 103.18 | 94.32 | 95.44 | 75.23 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.4% | 1.9% | 1.6% | 1.5% | 1.4% | 1.0% | 0.9% | — | — | — |
| Payout Ratio | 46.7% | 46.7% | 36.8% | 38.3% | 37.1% | 31.5% | 28.7% | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.1% | 4.0% | 4.4% | 3.8% | 3.8% | 3.3% | 3.1% | — | — | — |
| FCF Yield | 5.6% | 4.2% | 3.8% | 4.0% | 4.4% | 4.2% | 4.4% | — | — | — |
| Buyback Yield | 3.1% | 2.4% | 2.7% | 2.2% | 2.6% | 1.9% | 0.0% | — | — | — |
| Total Shareholder Yield | 5.5% | 4.2% | 4.3% | 3.6% | 4.0% | 3.0% | 0.9% | — | — | — |
| Shares Outstanding | — | $394M | $404M | $415M | $423M | $431M | $435M | $433M | $433M | $436M |
Includes 30+ ratios · 9 years · Updated daily
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Quick answers to the most common questions about buying OTIS stock.
Otis Worldwide Corporation's current P/E ratio is 19.5x. The historical average is 27.2x.
Otis Worldwide Corporation's current EV/EBITDA is 14.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 18.6x.
Based on historical data, Otis Worldwide Corporation is trading at a P/E of 19.5x. Compare with industry peers and growth rates for a complete picture.
Otis Worldwide Corporation's current dividend yield is 2.41% with a payout ratio of 46.7%.
Otis Worldwide Corporation has 30.3% gross margin and 14.8% operating margin. Operating margin between 10-20% is typical for established companies.
Otis Worldwide Corporation's Debt/EBITDA ratio is 3.8x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
China new equipment weakness
Metrics are mathematically derived from official filings.
Service Mix Drives Margin Resilience
Gross margin held near 30% despite mix shift, while operating margin expanded to 14.9% in Q2 2026 from 12.3% a year earlier, as reported in financial statements, indicating pricing discipline and service mix benefits.
The stability of gross margin around 30% despite a revenue mix shift toward lower-margin new equipment suggests that the service segment's higher margins are absorbing the drag. Operating margin expansion to 14.9% from 12.3% year-over-year indicates improving overhead efficiency, likely from cost discipline and service growth. However, the volatility in net margin, which swung from 15.2% in Q3 2024 to 7.3% in Q1 2025, points to tax rate fluctuations that investors should monitor as they can distort underlying profitability.
ROIC Volatility Masks Underlying Strength
ROIC averaged near 20% over the past ten quarters, but swung from 29.4% in Q1 2024 to 15.2% in Q3 2024, according to reported figures, indicating cyclicality in capital efficiency.
The wide swings in ROIC, from 29.4% to 15.2%, suggest that capital efficiency is sensitive to working capital timing and project milestones, particularly in the new equipment segment. The recent stabilization around 19-20% in 2026 indicates a more consistent return profile, likely driven by the growing service base. However, the negative equity position complicates ROE analysis, making ROIC a more reliable measure of value creation, though investors should note that the absolute level is still robust relative to peers.
Working Capital Drag Persists
Cash conversion cycle averaged 68 days over the past ten quarters, with DSO stable near 110 days, as per reported figures, indicating persistent working capital drag from receivables.
The cash conversion cycle has remained elevated, averaging 68 days, driven by high DSO of around 110 days, which reflects the long-cycle nature of new equipment contracts. DPO has been relatively stable near 65 days, suggesting limited supplier leverage. The slight improvement in CCC to 66 days in Q2 2026 from 71 days in Q3 2025 indicates modest working capital efficiency gains, but the persistent drag highlights the capital intensity of the new equipment business, which may offset the asset-light service model.
Leverage Creeps Higher as Equity Turns Negative
Total debt rose to $8.8B in Q2 2026 from $7.2B in Q1 2024, while equity remained deeply negative at -$5.7B, according to recent SEC filings, indicating a balance sheet increasingly reliant on debt financing.
The increase in total debt to $8.8B, coupled with negative equity of -$5.7B, suggests that the company is funding shareholder returns through debt, as cash declined to $813M. Interest coverage remains comfortable at 22x in Q2 2026, but the trend in D/EBITDA, which rose to 15.44 from 12.19 in Q1 2024, indicates rising leverage relative to earnings. The negative equity makes traditional D/E ratios uninformative, and investors should monitor the sustainability of this capital structure, especially if cash flows weaken.
Liquidity Buffer Thins as Current Ratio Dips
Current ratio fell to 0.83 in Q2 2026 from 0.97 in Q1 2024, while cash declined to $813M, as per reported figures, indicating a shrinking liquidity cushion against short-term obligations.
The current ratio below 1.0 indicates that current liabilities exceed current assets, which is typical for companies with strong cash generation but here it is exacerbated by declining cash. The quick ratio of 0.75 suggests that even excluding inventory, the company may struggle to cover short-term obligations without relying on operating cash flow. However, the stable service revenue provides a predictable cash stream, which may mitigate liquidity risk, but the trend warrants monitoring if cash continues to decline.
P/E Misleads on Service Quality
The P/E of 20.56 may understate the value of Otis's service-led model, as it fails to capture the recurring revenue quality, according to reported figures, suggesting a software-like earnings stream.
The market often applies a traditional industrial multiple to Otis, but the high-margin service segment with long-term contracts and high retention resembles a software business. The P/E of 20.56 is lower than peers like Trane (35x) and Carrier (36x), which may reflect a discount for perceived cyclicality. However, the EV/EBITDA of 15.18 is more comparable, indicating that the market may be pricing the business on EBITDA rather than earnings, which could obscure the quality of earnings. Investors should consider a sum-of-the-parts valuation or a multiple on service segment earnings to better capture the recurring revenue value.