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

We started the process of determining a valid price forecast for Otis Worldwide Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Otis Worldwide Corp ranked in the 26st percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Otis Worldwide Corp ended up being:

• Its compound free cash flow growth rate, as measured over the past 1 years, is -0.02% -- higher than only 21.03% of stocks in our DCF forecasting 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 just 18.18% of tickers in our DCF set.
• The weighted average cost of capital for the company is 9. This value is greater than just 12.26% stocks in the Industrials sector that generate free cash flow.

Want more companies with a valuation profile/forecast similar to that of Otis Worldwide Corp? See CAE, GNRC, ROK, ADP, and CAT.