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OTIS, Otis Worldwide Corporation Common Stock

Otis is t he world's leading elevator and escalator manufacturing, installation, service and modernization company.

We serve customers in ov er 200 countries and territories around t he world.

Our New Equipment customers include real estate and building developers and general contractors who develop and/or design buildings for residential, commercial, retail or mixed-use activity.

Latest annual: FY2025 10-K

OTIS · Otis Worldwide Corporation Common Stock

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$14.4B

+1.2% YoY · 2% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $14.6B 5-yr avg $14.2B

Operating margin 15.4% 5-yr avg 14.8%

ROIC 133% 5-yr avg 113%

Owner-earnings margin 11% 5-yr avg 10%

Free cash flow margin 11% 5-yr avg 10%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

What it is: Revenue is Maintenance and Repair (53%), Products (35%) and Modernization (13%).
What moves the needle: Operating margin has run about 14% through the cycle, a solid margin the cost base and competition set as much as the price does. That margin has held in a narrow 13%–15% band over the years, so steadiness itself is the evidence — the lever is unit growth and cost discipline, not a moving line. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has run high across the record (median 122%, above 15% in 3 of 3 years), though buybacks and expensed R&D and brands shrink the capital base, so the figure overstates the underlying economics. The steadier read is owner earnings: roughly 10% of revenue reaches owners as cash, consistently. Whether these returns reflect real pricing power or an accounting artifact is the judgment the 10-K is for.

Every line is arithmetic on the company's filings, shown in full in the sections below.

Where the money comes from

read the 10-K →

Revenue spreads across 3 lines, the largest Maintenance and Repair at 53%.

Revenue by product line, FY2025

Maintenance and Repair53%$7.6B
Products35%$5.0B
Modernization13%$1.9B

By geographyOther60%United States29%China11%

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2018–2025

realized figures from each filing · older years to the left

2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMMar 2026
									Income statement
$12.9B	$13.1B	$12.8B	$14.3B	$13.7B	$14.2B	$14.3B	$14.4B	$14.6B	RevenueRevenue
13%	14%	15%	14%	13%	13%	13%	14%	14%	SG&A / revenueSG&A/rev
1%	1%	1%	1%	1%	1%	1%	1%	1%	R&D / revenueR&D/rev
$1.8B	$1.8B	$1.6B	$2.1B	$2.0B	$2.2B	$2.0B	$2.1B	$2.3B	Operating incomeOp. inc.
14.2%	13.8%	12.8%	14.7%	14.9%	15.4%	14.1%	14.8%	15.4%	Operating marginOp. mgn
$1.0B	$1.1B	$906M	$1.2B	$1.3B	$1.4B	$1.6B	$1.4B	$1.5B	Net incomeNet inc.
39%	35%	33%	30%	29%	27%	16%	26%	25%	Effective tax rateTax rate
									Cash flow & returns
$1.6B	$1.5B	$1.5B	$1.8B	$1.6B	$1.6B	$1.6B	$1.6B	$1.8B	Operating cash flowOp. cash
$190M	$180M	$191M	$203M	$191M	$193M	$181M	$175M	$174M	DepreciationDeprec.
$273M	$136M	$320M	$236M	$49M	($36M)	($336M)	($43M)	$86M	Working capital & otherWC & other
$172M	$145M	$183M	$156M	$115M	$138M	$126M	$152M	$151M	CapexCapex
1.3%	1.1%	1.4%	1.1%	0.8%	1.0%	0.9%	1.1%	1.0%	Capex / revenueCapex/rev
$1.4B	$1.3B	$1.3B	$1.6B	$1.4B	$1.5B	$1.4B	$1.4B	$1.7B	Owner earningsOwner earn.
10.7%	10.1%	10.2%	11.1%	10.6%	10.5%	10.1%	10.0%	11.4%	Owner earnings marginOE mgn
$1.4B	$1.3B	$1.3B	$1.6B	$1.4B	$1.5B	$1.4B	$1.4B	$1.7B	Free cash flowFCF
10.7%	10.1%	10.2%	11.1%	10.6%	10.5%	10.1%	10.0%	11.4%	Free cash flow marginFCF mgn
$50M	$47M	$53M	$80M	$46M	$36M	$87M	$109M	$76M	AcquisitionsAcquis.
$0	$0	$260M	$393M	$465M	$539M	$606M	$647M	$655M	Dividends paidDiv. paid
—	$0	$0	$725M	$850M	$800M	$1.0B	$809M	—	BuybacksBuybacks
—	—	—	71%	—	—	144%	122%	133%	ROICROIC
									Balance sheet
$1.3B	$1.4B	$1.8B	$1.6B	$1.2B	$1.3B	$2.3B	$1.1B	$834M	Cash & investmentsCash+inv
—	$2.9B	$3.1B	$3.2B	$3.4B	$3.5B	$3.4B	$3.7B	$3.9B	ReceivablesReceiv.
—	$571M	$659M	$622M	$617M	$612M	$557M	$613M	$669M	InventoryInvent.
—	$1.3B	$1.5B	$1.6B	$1.7B	$1.9B	$1.9B	$2.1B	$2.0B	Accounts payablePayables
—	$2.1B	$2.4B	$2.3B	$2.3B	$2.3B	$2.1B	$2.2B	$2.6B	Operating working capitalOper. WC
—	$5.7B	$6.5B	$8.3B	$6.1B	$6.4B	$7.7B	$6.5B	$6.5B	Current assetsCur. assets
—	$5.4B	$6.7B	$6.2B	$6.8B	$6.5B	$7.7B	$7.7B	$7.7B	Current liabilitiesCur. liab.
—	1.1×	1.0×	1.3×	0.9×	1.0×	1.0×	0.8×	0.8×	Current ratioCurr. ratio
$1.7B	$1.6B	$1.8B	$1.7B	$1.6B	$1.6B	$1.5B	$1.7B	$1.7B	GoodwillGoodwill
—	$9.7B	$10.7B	$12.3B	$9.8B	$10.1B	$11.3B	$10.7B	$10.5B	Total assetsAssets
—	$5M	$5.3B	$7.2B	$6.7B	$6.9B	$8.3B	$7.8B	$7.8B	Total debtDebt
—	($1.4B)	$3.5B	$5.7B	$5.5B	$5.6B	$6.0B	$6.7B	$7.0B	Net debt / (cash)Net debt
$2.0B	$1.7B	($3.9B)	($3.6B)	($4.9B)	($4.9B)	($4.8B)	($5.4B)	($5.7B)	Shareholders’ equityEquity
0.3%	0.3%	0.5%	0.5%	0.5%	0.5%	0.5%	0.6%	0.5%	Stock comp / revenueSBC/rev
									Per share
433M	433M	435M	431M	423M	415M	404M	395M	390M	Shares out (diluted)Shares
$29.82	$30.29	$29.35	$33.14	$32.35	$34.27	$35.26	$36.54	$37.59	Revenue / shareRev/sh
$2.42	$2.58	$2.08	$2.89	$2.96	$3.39	$4.07	$3.50	$3.80	EPS (diluted)EPS
$3.18	$3.06	$2.98	$3.69	$3.42	$3.59	$3.55	$3.66	$4.28	Owner earnings / shareOE/sh
$3.18	$3.06	$2.98	$3.69	$3.42	$3.59	$3.55	$3.66	$4.28	Free cash flow / shareFCF/sh
$0.00	$0.00	$0.60	$0.91	$1.10	$1.30	$1.50	$1.64	$1.68	Dividends / shareDiv/sh
$0.40	$0.33	$0.42	$0.36	$0.27	$0.33	$0.31	$0.38	$0.39	Cap. spending / shareCapex/sh
$4.65	$3.93	$-8.89	$-8.40	$-11.51	$-11.88	$-11.99	$-13.65	$-14.58	Book value / shareBVPS

Per-share growththe realized rate an owner's share compounded

	7-yr	5-yr
Revenue / share	+2.9%/yr	+4.5%/yr
Owner earnings / share	+2.0%/yr	+4.1%/yr
EPS	+5.4%/yr	+10.9%/yr
Dividends / share	—	+22.3%/yr
Capital spending / share	−0.4%/yr	−1.8%/yr

The record, charted

FY2018–2025

Each measure over its full record; the current point and the worst year marked.

Share count

395Mpeak FY2020

ROIC

122%low FY2021

Net debt ÷ owner earnings

4.6×peak FY2025

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$1.4Bowner earningsvs.$1.4Bnet incomelow FY2020

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetainedBeyond op. cash

Each year's outlays against its operating cash: the mix, and how it drifts. The hatched cap is spending beyond that year's operating cash — financed from the balance sheet or borrowing, not operations.

FY2018FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business turned $1.4B of profit into $1.4B of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.

Reported net income$1.4B

Owner earnings$1.4B · 10% of revenue

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	$1.4B	$1.6B	$1.4B	$1.3B	$1.2B
Depreciation & amortizationnon-cash charge added back	+$175M	+$181M	+$193M	+$191M	+$203M
Stock-based compensationreal costnon-cash, but a real cost	+$80M	+$73M	+$64M	+$67M	+$65M
Working capital & othertiming of cash in and out, other non-cash items	−$43M	−$336M	−$36M	+$49M	+$236M
Cash from operations	$1.6B	$1.6B	$1.6B	$1.6B	$1.8B
Capital expenditurecash put back in to keep running and to grow	−$152M	−$126M	−$138M	−$115M	−$156M
Owner earnings	$1.4B	$1.4B	$1.5B	$1.4B	$1.6B
Owner-earnings marginowner earnings ÷ revenue	10%	10%	10%	11%	11%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $80M), owner earnings is nearer $1.4B.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? —

Interest expense not tagged in the data

What this means
No usable interest-expense line was tagged in the filing data, but the balance sheet carries real net debt — so the interest burden here is unknown, not absent. Read the debt on the net-debt check below.
How heavy is the debt, net of cash? $6.7B · 3.1× operating profit

Meaningful net debt

Cash $1.1B − debt $7.8B

What this means
Netting $1.1B of cash and short-term investments against $7.8B of debt leaves $6.7B owed, about 3.1× a year's operating profit (3.6× on the gross debt, before the cash). Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? —

Not enough data

What this means
The filing data didn't include the inputs for this check.

Is it a good business?

Return on invested capital 122%

Very high (≥25%) through the cycle

3-yr median, range 71%–144%; 122% latest = NOPAT $1.6B ÷ invested capital $1.3B

Industry peers: median 17%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 3 years (it ran 122% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 10%

Solid through the cycle

8-yr median margin, range 10%–11%; latest $1.4B = operating cash $1.6B − maintenance capex $152M

Industry peers: median 6%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 10% of revenue this year, a 10% median across 8 years. Treating stock comp as the real expense it is (less $80M of SBC) leaves $1.4B.
Are earnings backed by cash? 1.15×

Cash-backed

Cash from ops $1.6B ÷ net income $1.4B

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? 101%

Returned more than it generated

Dividends + buybacks $1.5B ÷ Owner Earnings $1.4B

What this means
The company returned more than it generated: against $1.4B of Owner Earnings, $1.5B (101%) went back to shareholders, $647M dividends, $809M buybacks — the excess came from the balance sheet or borrowing, not the year's operations. Net of $80M stock comp, the real buyback was about $729M. Sustained, that pattern draws down cash or adds debt; the net-debt line above shows where it stands.
Investing or harvesting? 0.87×

Maintaining

Capex $152M ÷ depreciation $175M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 3 of 6 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Pass

Revenue ≥ $2B · $14.4B

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Miss

Current ratio ≥ 2× · 0.85×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Miss

Debt ≤ working capital · $7.8B vs ($1.2B) WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Pass

A profit every year (8-yr record) · no losses

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · 6 of 8 yrs

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth Pass

Earnings +33% over the record · +44%

What this means
At least a third more earnings than a decade ago, averaging three years at each end. Net income (not per-share), so stock splits don't distort it, buybacks and dilution show up in the share-count line instead.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $3.85/share (latest year $3.61), the averaged base the calculator's gate runs on, and book value is $-14.05/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2018–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 8 of 8

What this means
Never lost money over the record, the earnings stability Graham insisted on.
Return on capital ≥ 15% 6 of 6 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin 14% → 15% (3-yr avg ends)

In the filing’s words The filing attributes gains to higher prices, but the margin in the record has not followed — the claim outruns the result here.

What this means
Through the cycle the operating margin held roughly steady — about 14% early, 15% lately, median 14%.
Reinvestment, incremental ROIC returns capital

What this means
The capital base barely grew: this business returns cash through dividends and buybacks rather than reinvesting. Judge it on the cash returned, not on compounding.
Owner earnings growth +1%/yr

What this means
Owner earnings grew about 1% a year over the record.
Worst year 2020 · 12.8% op. margin

What this means
Stayed profitable even in its hardest year, the resilience that survives recessions.
Share count −1.3%/yr

What this means
The share count is shrinking, buybacks are quietly growing your slice of the business.
Dividend record rising

What this means
Paid and raised the dividend across the record, the continuity Graham prized.
How management talks about it Owner’s terms

What this means
The filing reasons in an owner’s terms — per-share, return on capital, the long term — and the record has held; the words and the results are of a piece.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

In its own filing Raised, but not as a competitor

The filing raises AI among its risks, but in other terms (security, regulation, energy or the like), not as a competitor to its product.

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$6.5B

Cash & short-term investments$834M
Receivables$3.9B
Inventory$669M
Other current assets$1.0B

Current liabilities$7.7B

Debt due within a year$695M
Accounts payable$2.0B
Other current liabilities$5.1B

Current ratio0.84×all current assets ÷ what's due · Graham looked for 2×

Quick ratio0.75×stricter: inventory excluded

Cash ratio0.11×strictest: cash alone against what's due

Working capital($1.3B)the cushion left after near-term bills

Its current ratio is below 1, which usually reads as strain; here it is likely structural strength. What it owes in the near term is money to suppliers and customers (payables and deferred revenue), not to lenders, so the balance sheet is funded by operating float, the way Costco's and Amazon's are. The low ratio can be the edge, not the risk; the cash-conversion cycle and the debt due above say which.

Debt due this year vs. cash$695M due · $834M cash covered by cash on hand, no refinancing forced · both figures from the Mar 31, 2026 balance sheet

Revenue, latest quarter vs. a year ago+6.4%the freshest read on whether the business is still growing

Current ratio, recent quarters0.8× → 0.8×

Deeper floors

Tangible book value($7.7B)equity stripped of goodwill & intangibles

Net current asset value($9.5B)Graham's net-net: current assets less all liabilities

Debt incl. operating leases$8.1B$558M of it operating leases

Deferred revenue$3.1Bcustomer cash collected before delivery; operating float

From the company's latest filing.

Debt maturity

the debt note, SEC EDGAR →

Not how much it owes, but when it falls due, and against what. The ladder the company files, beside cash on hand and a year's owner earnings.

'26$842M

'27$1.5B

'28$750M

'29$0

'30$1.5B

later$3.2B

Bars scaled to the largest single year; “later” is everything due after 2030, shown apart since it dwarfs the years.

Due in the next 12 months$842Mthe first rung: what must be repaid or rolled over within the year

Within two years$2.3Bthe near wall, the part most exposed to today’s credit conditions

Biggest single year$1.5Bin 2030the lumpiest maturity, where a refinancing, if needed, is largest

Total scheduled principal$7.8Bevery year plus what lies beyond, as the footnote totals it

Against what the business has and earns

Cash & short-term investments, Mar 31, 2026$834M

One year of owner earnings (FY2025)$1.4B

Together, against $842M due next year2.7×

Cash on hand as of Mar 31, 2026 plus a year’s owner earnings comes to $2.3B against the $842M due in the twelve months after the Dec 31, 2025 schedule: 2.7 times it.

Maturity schedule extracted from the company’s Dec 31, 2025 annual report and reconciled to the total the table states.

How the cash was used, 2018–2025

Over the record, the business generated $12.6B of operating cash; how management split it reads as a balanced allocator, splitting cash between the business, owners, and the balance sheet.

Reinvested$1.2B · 9%
Dividends$2.9B · 23%
Buybacks$4.2B · 33%
Retained (debt / cash)$4.3B · 34%

Returned to owners$7.1B
62% of the owner earnings the business produced over the span, $2.9B as dividends and $4.2B as buybacks.
Average price paid for buybacks$84.50
Across the years where the filing reports a share count, 50M shares were bought for $4.2B, about $84.50 each. Year to year the price paid ranged from $74.74 (2021) to $95.00 (2024), and 2024, near the top of that range, was also its heaviest buyback year ($1.0B).
Net change in share count−10.0%
The diluted count fell from 433M to 390M, so the buybacks outran the stock issued to staff.
Dividend record$1.64/sh
Paid in 6 of the years on record. It was never cut over the span.
Return on what it retained4%
Of the earnings it kept rather than paid out ($2.9B over the span), annual owner earnings (first three years vs last three) grew $124M, so each retained $1 added about 0.04 of yearly owner earnings. Buffett's test, run on owner earnings instead of market value.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Chief executive	Pay, as filed	“Actually paid”	Owner earnings
2021	Ms. Marks	$13.8M	$26.8M	$1.6B
2022	Ms. Marks	$14.5M	$15.3M	$1.4B
2023	Ms. Marks	$15.9M	$21.1M	$1.5B
2024	Ms. Marks	$42.1M	$40.1M	$1.4B
2025	Ms. Marks	$17.0M	$9.5M	$1.4B

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

CEO pay ratio286:1
What the chief earns for every dollar the median employee makes, per the 2026 proxy. A high ratio alone settles nothing; some businesses are genuinely top-heavy in scarce skill. A runaway figure is where Buffett starts asking whether the board is doing its job.
Stock-based compensation$80M
The slice of the business handed to employees in shares this year, 1% of revenue, equal to 4% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why Otis Worldwide Corporation Common Stock is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2018–2025.

None of the 4 tests turned up a mark; each came back clean. A clean panel says only that these particular ways of being wrong are not written into the record.

Each test came back clean

Is it less profitable than it was?
Did the share count rise anyway?
Did reported profit become cash?
Are "one-time" charges a yearly habit?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

Peers, Electrical Equipment

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
GEGE Aerospace	$45.9B	36%	-2.2%	-2%	6%
GEVGE Vernova Inc.	$38.1B	16%	-0.7%	-3%	3%
EMREmerson Electric Company	$18.0B	43%	15.3%	17%	14%
TXNTexas Instruments Incorporated	$17.7B	64%	40.7%	35%	35%
WHRWhirlpool	$15.5B	17%	5.4%	12%	3%
OTISOtis Worldwide Corporation Common Stock	$14.4B	—	14.5%	122%	10%
MSIMotorola Solutions Inc.	$11.7B	49%	20.1%	36%	18%
SNSharkNinja Inc.	$6.4B	48%	11.7%	21%	6%
Group median	—	—	13.1%	19%	8%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Otis Worldwide Corporation Common Stock has delivered.

Today’s price $

Through the cycle, Otis Worldwide Corporation Common Stock earns about $1.5B on its 10.3% median owner-earnings margin. This year’s 10.0% margin runs in line with that. Normalize, below, values the price on that through-cycle figure rather than the latest year.

Base Normalize · through-cycle ($1.5B) Net of stock comp (−$78M)

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’21→’25−1%/yr

Owner-earnings growth · ’18→’25+1%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Owner earnings $1.7B on 384M shares outstanding, per the 10-Q cover, as of 2026-04-15; net debt $7.0B. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh OTIS against another business →

Cite: Owner Scorecard, "Otis Worldwide Corporation Common Stock (OTIS), the owner's record," https://ownerscorecard.com/c/OTIS, data as of 2026-07-09.

Manual order: ← OTEX its page in the Manual OTTR →

Industry order: ← NVX the Electrical Equipment chapter PCLA →