Otis Worldwide Corp. (OTIS): Price and Financial Metrics

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OTIS Price/Volume Stats

Otis Worldwide Corp. (OTIS) Company Bio

Otis Worldwide Corp. engages in the manufacture, installation, and provision of escalator and escalator services. It operates through the New Equipment and Service segments. The New Equipment segment designs, manufactures, sells, and installs a wide range of passenger and freight elevators. The Service segment offers maintenance and repair services; and modernization services to upgrade elevators and escalators. The company was founded by Elisha Graves Otis in 1853 and is headquartered in Farmington, CT.

OTIS Price Forecast Based on DCF Valuation

Below please find a table outlining a discounted cash flow forecast for OTIS, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Otis Worldwide Corp ranked in the 25th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Otis Worldwide Corp ended up being:

• In the past 1 years, Otis Worldwide Corp has a compound free cash flow growth rate of -0.02%; that's higher than merely 19.44% of free cash flow generating stocks in the Industrials sector.
• Otis Worldwide Corp's weighted average cost of capital (WACC) is 9%; for context, that number is higher than only 18.62% of tickers in our DCF set.
• OTIS's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than only 18.62% of tickers in our DCF set.

For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as OTIS, try FLS, ROK, CAE, CPRT, and ESLT.