Last Price$104.01.4%
Market Cap$41.8B
DCF value
$83.5
Overvalued (DCF value)
(19.7%)
Discount Rate
7.2%
Long-Term Growth Rate
2.0%
Stock quality
6/10
Good
OTIS DCF Model
Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
| Dec'20 Actual | Dec'21 Actual | Dec'22 Actual | Dec'23 Actual | Dec'24 Actual | Dec'25 Estimate | Dec'26 Estimate | Dec'27 Estimate | Dec'28 Estimate | Dec'29 Estimate | Dec'30 Estimate | Dec'31 Estimate | Dec'32 Estimate | Dec'33 Estimate | Dec'34 Estimate | Dec'35 Terminal | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
% growth | 12,756.0 (2.8%) | 14,298.0 12.1% | 13,685.0 (4.3%) | 14,209.0 3.8% | 14,261.0 0.4% | 14,469.5 1.5% | 15,141.7 4.6% | 16,180.0 6.9% | 17,080.5 5.6% | 17,944.2 5.1% | 18,760.1 4.5% | 19,517.5 4.0% | 20,206.1 3.5% | 20,816.1 3.0% | 21,338.5 2.5% | 21,765.2 2.0% |
% margin | 1,639.0 12.8% | 2,108.0 14.7% | 2,033.0 14.9% | 2,186.0 15.4% | 2,008.0 14.1% | 2,091.7 14.5% | 2,188.9 14.5% | 2,339.0 14.5% | 2,469.2 14.5% | 2,594.0 14.5% | 2,712.0 14.5% | 2,821.5 14.5% | 2,921.0 14.5% | 3,009.2 14.5% | 3,084.7 14.5% | 3,146.4 14.5% |
NOPAT % effective tax rate | 1,145.5 9.0% | 1,526.4 10.7% | 1,474.1 10.8% | 1,612.3 11.3% | 1,707.6 12.0% | 1,778.9 12.3% | 1,861.5 12.3% | 1,989.1 12.3% | 2,099.8 12.3% | 2,206.0 12.3% | 2,306.3 12.3% | 2,399.5 12.3% | 2,484.1 12.3% | 2,559.1 12.3% | 2,623.3 12.3% | 2,675.8 12.3% |
% of revenue | 191.0 1.5% | 203.0 1.4% | 191.0 1.4% | 193.0 1.4% | 181.0 1.3% | 194.0 1.3% | 203.1 1.3% | 217.0 1.3% | 229.1 1.3% | 240.6 1.3% | 251.6 1.3% | 261.7 1.3% | 271.0 1.3% | 279.2 1.3% | 286.2 1.3% | 291.9 1.3% |
% of revenue | (183.0) (1.4%) | (156.0) (1.1%) | (115.0) (0.8%) | (138.0) (1.0%) | (126.0) (0.9%) | (130.0) (0.9%) | (136.0) (0.9%) | (145.4) (0.9%) | (153.4) (0.9%) | (161.2) (0.9%) | (168.5) (0.9%) | (175.3) (0.9%) | (181.5) (0.9%) | (187.0) (0.9%) | (191.7) (0.9%) | (195.5) (0.9%) |
% of revenue | 63.0 0.5% | 45.0 0.3% | (64.0) (0.5%) | (31.0) (0.2%) | (294.0) (2.1%) | (132.5) (0.9%) | (138.7) (0.9%) | (148.2) (0.9%) | (156.4) (0.9%) | (164.3) (0.9%) | (171.8) (0.9%) | (178.7) (0.9%) | (185.0) (0.9%) | (190.6) (0.9%) | (195.4) (0.9%) | (199.3) (0.9%) |
Free Cash Flow to Firm (FCFF) % of revenue | 1,216.5 9.5% | 1,618.4 11.3% | 1,486.1 10.9% | 1,636.3 11.5% | 1,468.6 10.3% | 1,710.4 11.8% | 1,789.9 11.8% | 1,912.6 11.8% | 2,019.0 11.8% | 2,121.1 11.8% | 2,217.6 11.8% | 2,307.1 11.8% | 2,388.5 11.8% | 2,460.6 11.8% | 2,522.4 11.8% | 2,572.8 11.8% |
% of FCFF used in calculation | 81.9% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | ||||||
Discount period | 0.50 | 1.50 | 2.50 | 3.50 | 4.50 | 5.50 | 6.50 | 7.50 | 8.50 | 9.50 | ||||||
Discount factor | 0.97 | 0.90 | 0.84 | 0.78 | 0.73 | 0.68 | 0.63 | 0.59 | 0.55 | 0.51 | ||||||
Discounted FCFF (DFCFF) | 1,353.0 | 1,611.6 | 1,605.8 | 1,580.7 | 1,548.5 | 1,509.5 | 1,464.4 | 1,413.7 | 1,358.0 | 1,298.1 |
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OTIS DCF Value
DCF Value Calculation
as of Mar 07, 2025
Sum of DFCFF
% share of EV
14.7B
36.9%
Terminal Value (TV)
49.1B
Discounted TV
% share of EV
25.3B
63.1%
2,300.0M
Total Debt
8,742.0M
33.6B
Shares outstanding
401.9M
FX rate
1.0
83.5
19.7% overvalued
Equity Value Bridge
OTIS DCF Financials
Revenue
$14.3B -> $21.3B
4.1% CAGR
Operating Income
$2,008.0M -> $3,084.7M
4.4% CAGR
FCFF
$1,468.6M -> $2,522.4M
5.6% CAGR
OTIS DCF sensitivity
DCF value
Long-term Terminal growth rate
1.0%
1.5%
2.0%
2.5%
3.0%
WACC
6.0%
$96.0
$105.0
$113.0
$113.0
$113.0
6.5%
$86.0
$92.0
$100.0
$110.0
$110.0
7.2%
$73.0
$78.0
$83.0
$90.0
$98.0
7.5%
$70.0
$74.0
$79.0
$85.0
$92.0
8.0%
$63.0
$67.0
$71.0
$75.0
$81.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
1.0%
1.5%
2.0%
2.5%
3.0%
WACC
6.0%
(8.0%)
1.0%
9.0%
9.0%
9.0%
6.5%
(17.0%)
(12.0%)
(4.0%)
6.0%
6.0%
7.2%
(30.0%)
(25.0%)
(20.0%)
(13.0%)
(6.0%)
7.5%
(33.0%)
(29.0%)
(24.0%)
(18.0%)
(12.0%)
8.0%
(39.0%)
(36.0%)
(32.0%)
(28.0%)
(22.0%)
Explore more intrinsic value tools hub for OTIS
Margin of safety
Peter Lynch charts
Ben Graham Fair Value
Earnings Power Value
Relative Value
Earnings growth model
Discount rate
Peter Lynch Fair Value
Intrinsic Value
Reverse DCF
FAQ
What is Otis Worldwide Corporation DCF (discounted cash flow) valuation?
As of Mar 07, 2025, Otis Worldwide Corporation's Discounted Cash Flow (DCF) valuation estimates its share price at $83.5. This suggests it may be overvalued by (19.7%) compared to its current price of around $104.0, using a WACC of 7.2% and growth rates of 2.0%.
What is Otis Worldwide Corporation WACC?
As of Mar 07, 2025, Otis Worldwide Corporation's Weighted Average Cost of Capital (WACC) is approximately 7.2%.
What is Otis Worldwide Corporation Enterprise Value?
As of Mar 07, 2025, Otis Worldwide Corporation's Enterprise Value (EV) is approximately $40.0B. This value reflects the company's total market capitalization plus debt, minus cash and cash equivalents, providing a comprehensive measure of its overall value in the market.