Otis Worldwide Corporation (OTIS) Financial Ratios
9 years of historical data (2017–2025) · Industrials · Industrial - Machinery
EV/EBITDA
↓
16.36
↓-12% vs avg
5yr avg: 18.59
30Y Low17.6·High20.1
P/FCF
↑
20.85
↓-14% vs avg
5yr avg: 24.26
30Y Low22.6·High26.1
P/B Ratio
N/A
—
5yr avg: N/A
ROE
N/A
—
5yr avg: N/A
30Y Low24%·High49%
Debt/EBITDA
↑
3.79
+9% vs avg
5yr avg: 3.49
30Y Low0.0·High4.0
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
OTIS Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Otis Worldwide Corporation trades at 22.1x earnings, 15% below its 5-year average of 26.1x, sitting at the 0th percentile of its historical range. Compared to the Industrials sector median P/E of 25.5x, the stock trades at a discount of 13%. On a free-cash-flow basis, the stock trades at 20.9x P/FCF, 14% below the 5-year average of 24.3x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $30.1B | $34.4B | $37.5B | $37.1B | $33.1B | $37.6B | $29.4B | — | — | — |
| Enterprise Value | $37.8B | $42.0B | $43.9B | $43.1B | $39.1B | $43.8B | $34.1B | — | — | — |
| P/E Ratio → | 22.13 | 24.96 | 22.75 | 26.39 | 26.46 | 30.13 | 32.48 | — | — | — |
| P/S Ratio | 2.09 | 2.38 | 2.63 | 2.61 | 2.42 | 2.63 | 2.30 | — | — | — |
| P/B Ratio | — | — | — | — | — | — | — | — | — | — |
| P/FCF | 20.85 | 23.81 | 26.06 | 24.91 | 22.92 | 23.56 | 22.63 | — | — | — |
| P/OCF | 18.87 | 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
OTIS EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Otis Worldwide Corporation's enterprise value stands at 16.4x EBITDA, 12% below its 5-year average of 18.6x. The Industrials sector median is 13.8x, placing the stock at a 19% premium on an enterprise-value basis.
| 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 | 16.36 | 18.22 | 20.05 | 18.13 | 17.60 | 18.95 | 18.62 | — | — | — |
| EV / EBIT | 17.71 | 19.71 | 21.40 | 19.19 | 18.90 | 20.77 | 20.79 | — | — | — |
| EV / FCF | — | 29.12 | 30.55 | 28.96 | 27.09 | 27.47 | 26.27 | — | — | — |
OTIS Profitability
Margins and return-on-capital ratios measuring operating efficiency
Otis Worldwide Corporation earns an operating margin of 14.8%, above the Industrials sector average of 4.9%. ROIC of 78.1% represents excellent returns on invested capital versus a sector median of 6.3%.
Margins
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% |
Return on Capital
| 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% |
OTIS Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Otis Worldwide Corporation carries a Debt/EBITDA ratio of 3.8x, which is moderately leveraged (19% above the sector average of 3.2x). Net debt stands at $7.7B ($8.8B total debt minus $1.1B cash). Interest coverage of 10.9x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| 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 | 10.88 | 10.88 | 66.16 | 14.98 | 14.48 | 15.50 | 13.43 | 46.51 | 49.59 | 49.92 |
OTIS Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.85x is below 1.0, meaning current liabilities exceed current assets — though the company's $1.1B cash position helps mitigate short-term liquidity concerns. The current ratio has declined from 0.99x to 0.85x over the past 3 years.
| 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 |
OTIS Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Otis Worldwide Corporation returns 4.8% to shareholders annually — split between a 2.1% dividend yield and 2.7% buyback yield. A payout ratio of 46.7% is moderate and appears sustainable, balancing shareholder returns with reinvestment capacity. The earnings yield of 4.5% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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 | 2.1% | 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% | — | — | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.5% | 4.0% | 4.4% | 3.8% | 3.8% | 3.3% | 3.1% | — | — | — |
| FCF Yield | 4.8% | 4.2% | 3.8% | 4.0% | 4.4% | 4.2% | 4.4% | — | — | — |
| Buyback Yield | 2.7% | 2.4% | 2.7% | 2.2% | 2.6% | 1.9% | 0.0% | — | — | — |
| Total Shareholder Yield | 4.8% | 4.2% | 4.3% | 3.6% | 4.0% | 3.0% | 0.9% | — | — | — |
| Shares Outstanding | — | $394M | $404M | $415M | $423M | $431M | $435M | $433M | $433M | $436M |
Peer Comparison
Compare OTIS with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 OTISYou | $30B | 22.1 | 16.4 | 20.9 | 30.3% | 14.8% | — | 78.1% | 3.8 |
 CARR | $56B | 39.5 | 21.7 | 33.0 | 25.9% | 9.9% | 10.5% | 6.7% | 4.1 |
 TT | $104B | 36.2 | 25.3 | 37.0 | 36.2% | 18.6% | 36.3% | 26.2% | 1.1 |
 JCI | $85B | 52.9 | 26.0 | 88.3 | 36.4% | 12.0% | 21.7% | 8.5% | 3.0 |
 ALLE | $12B | 18.4 | 13.8 | 17.1 | 45.2% | 21.1% | 36.1% | 18.1% | 2.3 |
 FELE | $4B | 30.8 | 13.8 | 22.8 | 35.5% | 12.7% | 11.3% | 14.7% | 0.8 |
 RXO | $4B | -39.2 | 42.7 | — | 17.7% | -0.1% | -6.3% | -0.2% | 7.9 |
 NDSN | $16B | 33.4 | 20.7 | 23.9 | 55.2% | 25.5% | 16.2% | 10.5% | 2.4 |
 ITT | $19B | 34.0 | 21.4 | 33.9 | 35.4% | 17.4% | 14.2% | 16.1% | 1.1 |
 VMC | $37B | 35.6 | 18.3 | 33.0 | 27.3% | 20.1% | 13.0% | 8.8% | 2.3 |
 MLM | $36B | 31.9 | 19.2 | 37.0 | 30.0% | 23.3% | 11.7% | 7.6% | 2.5 |
| Industrials Median | — | 25.5 | 13.8 | 20.7 | 32.7% | 4.9% | 8.2% | 6.3% | 3.2 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Full OTIS Stock Analysis
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Start ComparisonOTIS — Frequently Asked Questions
Quick answers to the most common questions about buying OTIS stock.
What is Otis Worldwide Corporation's P/E ratio?
Otis Worldwide Corporation's current P/E ratio is 22.1x. The historical average is 27.2x.
What is Otis Worldwide Corporation's EV/EBITDA?
Otis Worldwide Corporation's current EV/EBITDA is 16.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 18.6x.
Is OTIS stock overvalued?
Based on historical data, Otis Worldwide Corporation is trading at a P/E of 22.1x. Compare with industry peers and growth rates for a complete picture.
What is Otis Worldwide Corporation's dividend yield?
Otis Worldwide Corporation's current dividend yield is 2.12% with a payout ratio of 46.7%.
What are Otis Worldwide Corporation's profit margins?
Otis Worldwide Corporation has 30.3% gross margin and 14.8% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does Otis Worldwide Corporation have?
Otis Worldwide Corporation's Debt/EBITDA ratio is 3.8x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.