OTIS (Otis Worldwide) Debt-to-EBITDA : 3.58 (As of Jun. 2026) — Near Median

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OTIS Otis Worldwide Corp OTIS
75 GF Score
Price $71.33
GF Value $101.87
Valuation Significantly Undervalued
! 3 Warning Signs
View Full Analysis

What is Otis Worldwide Debt-to-EBITDA?

Otis Worldwide OTIS -2.77% 75 Debt-to-EBITDA is 3.58 as of Jun. 2026, which is 9% above its 10-year median of 3.28. GuruFocus rates OTIS with a GF Score™ of 75/100 and a GF Value™ of $101.87 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 2,331 Industrial Products companies, Otis Worldwide ranks worse than 70.18% on this metric.

Debt-to-EBITDA measures a company's ability to pay off its debt.

Otis Worldwide's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was $1,390 Mil. Otis Worldwide's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was $7,456 Mil. Otis Worldwide's annualized EBITDA for the quarter that ended in Jun. 2026 was $2,468 Mil. Otis Worldwide's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2026 was 3.58.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Otis Worldwide's Debt-to-EBITDA or its related term are showing as below:

OTIS' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.01   Med: 3.28   Max: 3.92
Current: 3.47

During the past 9 years, the highest Debt-to-EBITDA Ratio of Otis Worldwide was 3.92. The lowest was 0.01. And the median was 3.28.

OTIS's Debt-to-EBITDA is ranked worse than
70.18% of 2331 companies
in the Industrial Products industry
Industry Median: 1.7 vs OTIS: 3.47

Otis Worldwide  (NYSE:OTIS) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


Otis Worldwide Debt-to-EBITDA Related Terms


Otis Worldwide Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Otis Worldwide's Debt-to-EBITDA 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.

Otis Worldwide Debt-to-EBITDA Chart

Otis Worldwide Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only 3.37 3.19 3.00 3.92 3.56

Otis Worldwide Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Debt-to-EBITDA 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 3.44 3.37 2.96 3.54 3.58

OTIS vs DOV, XYL, IR: Debt-to-EBITDA Comparison

For the Specialty Industrial Machinery subindustry, Otis Worldwide's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Otis Worldwide's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Otis Worldwide's Debt-to-EBITDA falls into.


OTIS
75GF Score
Otis Worldwide Corp OTIS
Debt-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Otis Worldwide Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Otis Worldwide's Debt-to-EBITDA for the fiscal year that ended in Dec. 2025 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(1214 + 7297) / 2394
=3.56

Otis Worldwide's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2026 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(1390 + 7456) / 2468
=3.58

* 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.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Jun. 2026) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 3.58 mean?
Otis Worldwide (OTIS) has a Debt-to-EBITDA of 3.58 as of Jun. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Otis Worldwide. This is near median its historical median of 3.28. Over the past decade, Otis Worldwide's Debt-to-EBITDA has ranged from 0.01 to 3.92. According to the industry distribution chart, Otis Worldwide ranks #1636 out of 2331 companies in the Industrial Products industry, placing it in the top 70.2%.
Is Otis Worldwide's Debt-to-EBITDA too high?
Otis Worldwide's current Debt-to-EBITDA of 3.58 is near median its 10-year median of 3.28. Over the past 10 years, this metric has ranged from a low of 0.01 to a high of 3.92. The Industrial Products industry median Debt-to-EBITDA is 1.70. Otis Worldwide's value of 3.58 is 110.6% above this industry median. Based on the distribution chart, Otis Worldwide ranks #1636 out of 2331 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Otis Worldwide has a GF Score™ of 75/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Otis Worldwide's Debt-to-EBITDA compare to DOV and XYL?
According to the Industrial Products industry distribution chart, Otis Worldwide ranks #1636 out of 2331 companies for Debt-to-EBITDA. This places Otis Worldwide in the lower half of its industry. The industry median Debt-to-EBITDA is 1.70. Otis Worldwide's value of 3.58 is 110.6% above this benchmark. Historically, Otis Worldwide's own Debt-to-EBITDA has ranged from 0.01 to 3.92 over the past decade. While the company's 10-year median is 3.28 vs. the industry median of 1.70, Otis Worldwide has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for an Industrial Products company?
The median Debt-to-EBITDA among Industrial Products companies is 1.70, based on 2,331 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Otis Worldwide's current Debt-to-EBITDA of 3.58 is 110.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Otis Worldwide. For the Industrial Products industry, the median Debt-to-EBITDA is 1.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Otis Worldwide's current Debt-to-EBITDA is 3.58, which is near median its own 10-year median of 3.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Otis Worldwide stock overvalued right now?
Based on GuruFocus' analysis, Otis Worldwide (OTIS) is currently considered Significantly Undervalued. The stock's GF Value™ is $101.87, compared to a current price of $71.33 — trading 30% below its estimated fair value. The current Debt-to-EBITDA is 3.58, which is near median its 10-year median of 3.28 and 110.6% above the Industrial Products industry median of 1.70. Otis Worldwide's overall GF Score™ is 75/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Otis Worldwide (OTIS), the current Debt-to-EBITDA is 3.58 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Otis Worldwide (OTIS) Overvalued in 2026?

Based on GuruFocus' analysis, Otis Worldwide stock appears to be undervalued. The current stock price of $71.33 is trading 30% below its estimated GF Value™ of $101.87. GuruFocus considers Otis Worldwide to be Significantly Undervalued.

Key valuation signals for OTIS:

  • Debt-to-EBITDA: 3.58 (near median its 10-year median of 3.28)
  • GF Value™: $101.87 vs. price of $71.33 (30% below fair value)
  • GF Score™: 75/100 with 3 warning signs
  • Industry Position: 110.6% above the Industrial Products median (#1636 of 2331)

No single metric tells the full story. See the OTIS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


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.
75GF Score

Get the complete analysis for OTIS

Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$71.33
Price
$101.87
GF Value