Stock fact sheet · data as of
Otis Worldwide Corporation (OTIS): fair value, margin of safety and Wheel Score
Industrials · Industrial - Machinery · United States · Value
Is OTIS undervalued?
Otis Worldwide Corporation (OTIS) closed at 70.40 on 16 Oct 2026, close to the GLS average fair value of 64.55 (9.1% above fair value). 4 of the 8 models that produced a number sit above the price, 4 below - the market and our models roughly agree. With little margin of safety either way, the case for or against the stock rests on the quality numbers and the option premium rather than on price.
There is a wide gap between GLS Growth (11.02) and 10 Cap (116.11). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files OTIS under Value: positive earnings at a P/E of 18 or less.
Nine valuation models for OTIS
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 77.34 | +10% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | - | - | The most a defensive investor pays for the earnings and book value per share; no value tonight |
| Graham Growth | 115.73 | +64% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 42.45 | -40% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 11.02 | -84% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 116.11 | +65% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 84.70 | +20% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 25.31 | -64% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 43.73 | -38% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -24.75 | -135% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 87.00 | +24% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Otis Worldwide Corporation scores 7 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. On durability OTIS scores 5.7/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.
Returns on capital are high - ROIC 41.2%, ROE -25.7%, ROA 13.0% - with debt at -1.62 times equity and a free-cash-flow yield of 6.4%.
The dividend yield is 2.44% at a payout ratio of 43%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Services 67%, New Equipment 33% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 3/10 on the GLS smart-money scales; the last recorded Congressional buy was on 27 Aug 2026.
| Piotroski F-score | 7 / 9 | ROIC | 41.2% |
|---|---|---|---|
| GLS Moat | 5.7 / 10 | ROE | -25.7% |
| Debt / equity | -1.62 | ROA | 13.0% |
| Free-cash-flow yield | 6.4% | Payout ratio | 43% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 3 / 10 |
Wheel Score 69: Good
With a Wheel Score of 69 - the Good band - Otis Worldwide Corporation falls just short of the Sunday Scan's "70 or higher" rule. The parts: Value 9/25, Health 16/20, Moat 9/15, Premium 16/20, Stability 20/20; Value (9/25) scores lowest.
Implied volatility is 31% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (16 of 20 points). Chain open interest is 25,495 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 4.8M shares a day on a market cap of $26.8B, with a beta of 0.86; the Stability part of the Wheel Score gives that 20 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 9 / 25 | -9% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 9 / 15 | moat 5.7/10 | |
| Premium | 16 / 20 | implied volatility 31% | |
| Stability | 20 / 20 | 4.8M shares/day, $26.8B cap, beta 0.86 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Otis Worldwide Corporation reports earnings on 28 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Industrial - Machinery
The 12 companies below are the closest to Otis Worldwide Corporation by market cap within the Industrial - Machinery industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| SYM Symbotic Inc. | 37.90 | 22.23 | -70% | 56Fair | $27.4B |
| DOV Dover Corporation | 194.09 | 124.42 | -56% | 61Fair | $26.1B |
| XYL Xylem Inc. | 102.74 | 98.67 | -4% | 75Good | $24.0B |
| IR Ingersoll Rand Inc. | 77.88 | 39.61 | -97% | 63Fair | $30.2B |
| NDSN Nordson Corporation | 328.80 | 162.22 | -103% | 55Fair | $18.3B |
| ITT ITT Inc. | 201.04 | 129.35 | -55% | 58Fair | $18.0B |
| IEX IDEX Corporation | 236.42 | 123.83 | -91% | 60Fair | $17.4B |
| CARR Carrier Global Corporation | 54.96 | 28.43 | -93% | 60Fair | $45.3B |
| ROK Rockwell Automation, Inc. | 423.42 | 168.71 | -151% | 66Good | $47.1B |
| GGG Graco Inc. | 81.78 | 53.01 | -54% | 61Fair | $13.2B |
| PCAR PACCAR Inc | 108.56 | 79.18 | -37% | 58Fair | $57.1B |
| LII Lennox International Inc. | 358.50 | 480.26 | +25% | 85Prime | $12.4B |
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Start free See the Sunday ScanQuestions about OTIS
Is OTIS undervalued right now?
Not meaningfully: at 70.40 the stock trades within a few percent of the GLS average fair value of 64.55 (9.1% above fair value, data as of 16 Oct 2026).
What is the Wheel Score of OTIS and what does it mean?
OTIS scores 69 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for OTIS?
64.55 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Otis Worldwide Corporation report earnings next?
The next earnings report is due on 28 Oct 2026 (before the open), 12 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does OTIS have listed options, and how liquid are they?
Yes. The nightly snapshot found 194 listed contracts with 25,495 open interest across all expiries and implied volatility of 31% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.