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OTIS (Otis Worldwide) PEG Ratio : 5.29 (As of Dec. 12, 2024)


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What is Otis Worldwide PEG Ratio?

PE Ratio without NRI / 5-Year EBITDA Growth Rate*

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, Otis Worldwide's PE Ratio without NRI is 25.94. Otis Worldwide's 5-Year EBITDA growth rate is 4.90%. Therefore, Otis Worldwide's PEG Ratio for today is 5.29.

* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.


The historical rank and industry rank for Otis Worldwide's PEG Ratio or its related term are showing as below:

OTIS' s PEG Ratio Range Over the Past 10 Years
Min: 2.05   Med: 5.02   Max: 17.09
Current: 5.29


During the past 7 years, Otis Worldwide's highest PEG Ratio was 17.09. The lowest was 2.05. And the median was 5.02.


OTIS's PEG Ratio is ranked worse than
80.85% of 1269 companies
in the Industrial Products industry
Industry Median: 1.8 vs OTIS: 5.29

Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.


Otis Worldwide PEG Ratio Historical Data

The historical data trend for Otis Worldwide's PEG Ratio 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 PEG Ratio Chart

Otis Worldwide Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PEG Ratio
Get a 7-Day Free Trial - - - 15.66 5.20

Otis Worldwide Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
PEG Ratio 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 - 5.20 - 2.16 3.51

Competitive Comparison of Otis Worldwide's PEG Ratio

For the Specialty Industrial Machinery subindustry, Otis Worldwide's PEG Ratio, along with its competitors' market caps and PEG Ratio 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 PEG Ratio Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Otis Worldwide's PEG Ratio distribution charts can be found below:

* The bar in red indicates where Otis Worldwide's PEG Ratio falls into.



Otis Worldwide PEG Ratio Calculation

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The ratio we use is the 5-Year EBITDA growth rate.

Otis Worldwide's PEG Ratio for today is calculated as

PEG Ratio=PE Ratio without NRI/5-Year EBITDA Growth Rate*
=25.942970822281/4.90
=5.29

* 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.

* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.


Otis Worldwide  (NYSE:OTIS) PEG Ratio Explanation

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.


Otis Worldwide PEG Ratio Related Terms

Thank you for viewing the detailed overview of Otis Worldwide's PEG Ratio 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
Michael Patrick Ryan officer: VP, CAO and Controller 10 FARM SPRINGS ROAD, FARMINGTON CT 06032
Abbe Luersman officer: EVP & CPO 1 CARRIER PLACE, FARMINGTON CT 06032
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
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