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OTIS (Otis Worldwide) Peter Lynch Fair Value : $44.63 (As of Oct. 08, 2024)


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What is Otis Worldwide Peter Lynch Fair Value?

Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year. Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years. If 5-Year Growth Rate is greater than 25% a year, we use 25. If 5-Year Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.

Here, as of today, Otis Worldwide's PEG is 1. Otis Worldwide's 5-Year TTM EBITDA Growth Rate is 11.87. Otis Worldwide's EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2024 was $3.76. Therefore, the Peter Lynch Fair Value for today is $44.63.

As of today (2024-10-08), Otis Worldwide's share price is $101.15. Otis Worldwide's Peter Lynch fair value is $44.63. Therefore, Otis Worldwide's Price to Peter Lynch Fair Value Ratio for today is 2.27.


The historical rank and industry rank for Otis Worldwide's Peter Lynch Fair Value or its related term are showing as below:

OTIS' s Price-to-Peter-Lynch-Fair-Value Range Over the Past 10 Years
Min: 2.16   Med: 2.16   Max: 2.33
Current: 2.27


During the past 7 years, the highest Price to Peter Lynch Fair Value Ratio of Otis Worldwide was 2.33. The lowest was 2.16. And the median was 2.16.


OTIS's Price-to-Peter-Lynch-Fair-Value is ranked worse than
73.5% of 1015 companies
in the Industrial Products industry
Industry Median: 1.39 vs OTIS: 2.27

Note: Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart.


Otis Worldwide Peter Lynch Fair Value Historical Data

The historical data trend for Otis Worldwide's Peter Lynch Fair Value can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Otis Worldwide Peter Lynch Fair Value Chart

Otis Worldwide Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Peter Lynch Fair Value
Get a 7-Day Free Trial - - - - -

Otis Worldwide Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Peter Lynch Fair Value Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - - 44.63

Competitive Comparison of Otis Worldwide's Peter Lynch Fair Value

For the Specialty Industrial Machinery subindustry, Otis Worldwide's Price-to-Peter-Lynch-Fair-Value, along with its competitors' market caps and Price-to-Peter-Lynch-Fair-Value data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Otis Worldwide's Price-to-Peter-Lynch-Fair-Value Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Otis Worldwide's Price-to-Peter-Lynch-Fair-Value distribution charts can be found below:

* The bar in red indicates where Otis Worldwide's Price-to-Peter-Lynch-Fair-Value falls into.



Otis Worldwide Peter Lynch Fair Value Calculation

Otis Worldwide's Peter Lynch Fair Value for today is calculated as

Peter Lynch Fair Value=PEG Ratio*5-Year TTM EBITDA Growth Rate***EPS without NRI (TTM)
=1* 11.87 *3.76
=44.63

Otis Worldwide's EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $3.76.


* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** Please be aware that the 5-Year TTM EBITDA Growth Rate is calculated based on TTM data over the last 5 years. For quarterly reported companies, the TTM data adds up the quarterly data reported by the company within the most recent 12 months. For companies that report semi-annually, annually, or do not have enough quarterly data, GuruFocus uses the annual data as the TTM data.

If 5-Year Earnings Growth Rate is greater than 25% a year, we use 25.

If 5-Year Earnings Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.

Please note that we use the 5-year average growth rate of EBITDA per share as the growth rate for non-bank companies, as EBITDA growth is subject to less manipulations than net earnings per share. For banks, we use the 5-year average growth rate of Book Value per share as the growth rate. The reason is that EBITDA is not applicable to Banks and Book value is a relative important measurement for Banks. In the calculation, PEG=1 because Peter Lynch thinks that the fair P/E ratio of the growth stock is equal to its earnings growth rate.


Otis Worldwide  (NYSE:OTIS) Peter Lynch Fair Value Explanation

Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year.

Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years.

Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart. In Peter Lynch chart, a fixed P/E ratio of 15 is used to draw the Earnings Line. Therefore the value reached has a P/E ratio of 15. But in Peter Lynch Fair Value calculation, P/E equals to the growth rate of EBITDA per share over the past 5 years, which is 11.87 instead of 15 in this case.

Otis Worldwide's Price to Peter Lynch Fair Value Ratio for today is calculated as

Price to Peter Lynch Fair Value=Share Price/Peter Lynch Fair Value
=101.15/44.63
=2.27

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Otis Worldwide Peter Lynch Fair Value Related Terms

Thank you for viewing the detailed overview of Otis Worldwide's Peter Lynch Fair Value provided by GuruFocus.com. Please click on the following links to see related term pages.


Otis Worldwide Business Description

Address
One Carrier Place, Farmington, CT, USA, 06032
Otis is the largest global elevator and escalator supplier by revenue with around 18% global market share. In 1854 Otis' founder and namesake Elisha Graves Otis, invented a safety mechanism that prevented elevators from falling if the hoisting cable failed. The company's product and service lifecycle begins with installations of elevator units in new buildings, later selling maintenance services on the units, and eventually replacement of the units after the average 15- to 20-year useful life of an elevator. As the largest global OEM, Otis has amassed an installed base under service that exceeds 2 million elevators. Its business model is similar to that of its closest competitors Kone, Schindler, and TK Elevator.
Executives
Peiming Zheng officer: President, Otis China ONE CARRIER PLACE, FARMINGTON CT 06032
Montlivault Stephane De officer: President, Otis Asia Pacific ONE CARRIER PLACE, FARMINGTON CT 06032
Nora E. Lafreniere officer: EVP, Chief GC & Corp. Sec. ONE CARRIER PLACE, FARMINGTON CT 06032
Michael Patrick Ryan officer: VP, CAO and Controller 10 FARM SPRINGS ROAD, FARMINGTON CT 06032
Judith Fran Marks director, officer: President and CEO C/O HUBBELL INCORPORATED, 40 WATERVIEW DRIVE, SHELTON CT 06484
Thomas A Bartlett director 116 HUNTINGTON AVENUE, BOSTON MA 02116
Jill Brannon director 942 S. SHADY GROVE ROAD, MEMPHIS TN 38120
Tracy A Embree officer: President, Otis Americas 500 JACKSON STREET, COLUMBUS IN 47201
Viseras Enrique Minarro officer: President, Otis EMEA C/O INGERSOLL RAND INC., 525 HARBOUR PLACE DRIVE, SUITE 600, DAVIDSON NC 28036
Fernandez Bernardo Calleja officer: President, Otis EMEA 1 CARRIER PLACE, FARMINGTON CT 06032
Sally Loh officer: President, Otis China 1 CARRIER PLACE, FARMINGTON CT 06032
James F. Cramer officer: President, Otis Americas 1 CARRIER PLACE, FARMINGTON CT 06032
Nelda J Connors director BOSTON SCIENTIFIC CORPORATION, 300 BOSTON SCIENTIFIC WAY, MARLBOROUGH MA 01752-1234
Anurag Maheshwari officer: EVP and CFO 1 CARRIER PLACE, FARMINGTON CT 06032
Rahul Ghai officer: EVP & Chief Financial Officer GENERAL ELECTRIC COMPANY, 5 NECCO STREET, BOSTON MA 02210