Otis Worldwide Corporation logo OTIS - Otis Worldwide Corporation

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY 0
BUY 7
HOLD 7
SELL 1
STRONG
SELL 0
| PRICE TARGET: $92.17 DETAILS
HIGH: $105.00
LOW: $77.00
MEDIAN: $92.50
CONSENSUS: $92.17
UPSIDE: 28.14%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Stable Earnings Power 65% confidence

Primary model: P/Adj-EPS × Normalized Multiple

Valuation Signal Overvalued Mild
Trading 13.8% above fair value
Current Price $71.93
Bear Case $50.54 29.7% downside ($50.54 - $71.93) / $71.93 = -29.7% $3.57 × 12x P/E
Fair Value $63.18 12.2% downside ($63.18 - $71.93) / $71.93 = -12.2% $3.57 × 15x P/E
Bull Case $75.81 5.4% upside ($75.81 - $71.93) / $71.93 = 5.4% $3.57 × 18x P/E

Adjust Assumptions

15.0x
3.57$

Key Value Driver

Normalized P/E multiple (15x base case)

Implied Market Multiple 20.2x

Plain-Language Summary

Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $92.17 from 15 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $63.18 per share.

Warnings

ℹ Wall Street's average price target is $92.17 (from 15 analysts). Our estimate is 42% below the consensus -- consider that gap carefully.

Key Risks

  • Growth DCF inappropriate — terminal value assumptions dominate
  • EV/EBITDA misleading for regulated businesses where capex is mandated
  • Regulatory risk is a fat tail not visible in normal multiples