Latest Ratios: P/E Ratio 21.0x · EV/EBITDA 15.7x · ROE N/A. (2017–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $28.5B | $34.4B | $37.5B | $37.1B | $33.1B | $37.6B | $29.4B | — | — | — |
| Enterprise Value | $36.2B | $42.0B | $43.9B | $43.1B | $39.1B | $43.8B | $34.1B | — | — | — |
| P/E Ratio → | 20.98 | 24.96 | 22.75 | 26.39 | 26.46 | 30.13 | 32.48 | — | — | — |
| P/S Ratio | 1.98 | 2.38 | 2.63 | 2.61 | 2.42 | 2.63 | 2.30 | — | — | — |
| P/B Ratio | — | — | — | — | — | — | — | — | — | — |
| P/FCF | 19.77 | 23.81 | 26.06 | 24.91 | 22.92 | 23.56 | 22.63 | — | — | — |
| P/OCF | 17.88 | 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
Enterprise-value multiples — capital-structure-neutral measures of total business value
| 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 | 15.68 | 18.22 | 20.05 | 18.13 | 17.60 | 18.95 | 18.62 | — | — | — |
| EV / EBIT | 16.97 | 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 | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
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% |
| 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% |
Solvency and debt-coverage ratios — lower is generally safer
| 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 |
Short-term solvency ratios and asset-utilisation metrics
| 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 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
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 | 2.2% | 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% | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.8% | 4.0% | 4.4% | 3.8% | 3.8% | 3.3% | 3.1% | — | — | — |
| FCF Yield | 5.1% | 4.2% | 3.8% | 4.0% | 4.4% | 4.2% | 4.4% | — | — | — |
| Buyback Yield | 2.8% | 2.4% | 2.7% | 2.2% | 2.6% | 1.9% | 0.0% | — | — | — |
| Total Shareholder Yield | 5.1% | 4.2% | 4.3% | 3.6% | 4.0% | 3.0% | 0.9% | — | — | — |
| Shares Outstanding | — | $394M | $404M | $415M | $423M | $431M | $435M | $433M | $433M | $436M |
China property market exposure
According to current market data, Otis trades at a 20.91x TTM P/E, which appears to reflect a quality premium for its recurring service revenue, yet the 1.91 PEG ratio suggests investors may be overpaying for the company's modest organic growth prospects relative to its industrial peers.
The valuation multiple sits comfortably above the lower-end industrial machinery cohort but remains below the high-growth HVAC-exposed peers like Trane Technologies. This positioning suggests the market is pricing in the stability of the service backlog while remaining cautious about the potential for sustained volume contraction in the new equipment segment.
Based on reported figures, Otis has maintained a robust ROIC, averaging approximately 20% over the last ten quarters, which is impressive given the company's persistent negative equity position that complicates traditional return-on-equity calculations and masks the underlying efficiency of its global service-led business model.
The high ROIC indicates that the company is generating significant returns on its operating assets, effectively leveraging its installed base to drive value. However, the reliance on debt to fund capital returns means that the company's capital structure is highly sensitive to interest rate fluctuations and credit market access.
As reported in financial statements, the cash conversion cycle has fluctuated between 44 and 71 days over the past ten quarters, reflecting inherent volatility in managing a global supply chain and the long-cycle nature of large-scale elevator installation projects across diverse international markets.
The elevated DSO, which has consistently remained above 90 days, suggests that the company may be offering extended payment terms to secure new equipment contracts in competitive markets. This working capital intensity warrants further investigation into whether these terms are becoming a structural necessity to maintain market share in China.
According to recent SEC filings, the current ratio has consistently hovered below 1.0, ranging from 0.79 to 0.99, which indicates a limited margin of safety for meeting short-term obligations and suggests a reliance on continuous cash flow generation to fund ongoing operations and debt service.
While the recurring nature of the service business provides a predictable cash inflow, the lack of a significant liquidity buffer leaves the company vulnerable to sudden operational disruptions or macroeconomic shocks. Investors should monitor whether management intends to improve this ratio or if the current tight liquidity is a permanent feature of their capital allocation strategy.
Analysis of the business model suggests that the P/E ratio is a frequently misapplied metric for Otis, as it fails to account for the significant non-cash charges and capital structure distortions resulting from the company's post-spin-off accounting and aggressive share repurchase programs.
Instead of relying on P/E, analysts should prioritize EV/EBITDA or FCF yield to better capture the underlying cash-generating power of the service portfolio. These metrics provide a clearer view of the company's ability to service its debt and fund dividends without being obscured by the volatility of net income.
Includes 30+ ratios · 9 years · Updated daily
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Quick answers to the most common questions about buying OTIS stock.
Otis Worldwide Corporation's current P/E ratio is 21.0x. The historical average is 27.2x.
Otis Worldwide Corporation's current EV/EBITDA is 15.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 18.6x.
Based on historical data, Otis Worldwide Corporation is trading at a P/E of 21.0x. Compare with industry peers and growth rates for a complete picture.
Otis Worldwide Corporation's current dividend yield is 2.24% with a payout ratio of 46.7%.
Otis Worldwide Corporation has 30.3% gross margin and 14.8% operating margin. Operating margin between 10-20% is typical for established companies.
Otis Worldwide Corporation's Debt/EBITDA ratio is 3.8x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.