Using the PEG framework with analyst consensus forward EPS growth of 16.1% plus 2.1% dividend yield, Otis Worldwide Corporation has a fair value of $69.82 based on NTM EPS (FY2026) of $4.35. The current PEG ratio is 1.11.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 13.9% |
| Dividend Yield | +2.1% |
| Adjusted Growth (clamped 8–25%) | 16.1% |
| Fair P/E | 16.1x |
| NTM EPS (FY2026) | $4.35 |
| Fair Value | $69.82 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $3.50 | — | — |
| FY2026E | $4.35 | +24.2% | 10 |
| FY2027E | $4.82 | +10.9% | 10 |
| FY2028E | $5.30 | +10.0% | 10 |
| FY2029E | $5.90 | +11.2% | 5 |
4Y Forward EPS CAGR: 13.9%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $1.2B | $2.89 | — |
| FY2022 | $1.3B | $2.96 | +2.4% |
| FY2023 | $1.4B | $3.39 | +14.5% |
| FY2024 | $1.6B | $4.07 | +20.1% |
| FY2025 | $1.4B | $3.50 | -14.0% |
4Y Historical EPS CAGR: 4.9%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.