Is Otis Worldwide Corporation (OTIS) Undervalued?
Based on the current stock price of $87.62 and a P/E ratio of 25.85,Otis Worldwide Corporation has a PEG ratio of 4.14.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 4.14, OTIS appears to be potentially overvalued relative to its growth rate of 6.24%.
Based on a PEG ratio of 3.17 (adjusted for dividends).
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How we analyzed OTIS
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 25.85and dividing it by the annual growth rate of 6.24%.
PEG = 25.85 (P/E) ÷ 6.24 (Growth) = 4.14
Frequently Asked Questions about OTIS
What is the current PEG Ratio for Otis Worldwide Corporation (OTIS)?+
The current PEG Ratio for Otis Worldwide Corporation is 4.14. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is OTIS stock undervalued right now?+
Based on the PEG ratio of 4.14, Otis Worldwide Corporation appears to be potentially overvalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for OTIS?+
The PEGY ratio for Otis Worldwide Corporation is 3.17. This metric accounts for dividend yield (1.92%), providing a more complete valuation picture.