Otis Worldwide (OTIS) Financial Forecast Calculator
Interactive 5-year forecast and DCF for Otis Worldwide. Adjust revenue growth, gross margin, capex intensity, WACC, and terminal growth - see revenue, free cash flow, and enterprise value update in real time. Seeded from Otis Worldwide’s most recent SEC filings.
Assumptions
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Keep iterating on the Otis Worldwide forecast in Excel. The downloadable sample has every assumption you see here plus a fully integrated income statement, balance sheet, cash flow, and debt schedule - five years of SEC historicals and live formulas in a fully editable workbook.
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Frequently asked
What does Otis Worldwide do?+
Otis Worldwide is the global leader in manufacturing, installing, and maintaining elevators, escalators, and moving walkways, serving over 2.5 billion people daily. The company operates through two main segments: Service, which includes maintenance and modernization, and New Equipment.
How does Otis Worldwide generate revenue?+
Otis Worldwide generates revenue primarily through its "razor and blades" business model, where new equipment sales at lower margins lead to highly profitable, long-term service and maintenance contracts. The Service segment contributes approximately 62% of net sales and 87% of operating profit, while New Equipment accounts for the remaining sales and profit.
What is Otis Worldwide's capital expenditure strategy?+
Otis Worldwide maintains an asset-light manufacturing footprint, with capital expenditure typically ranging from 1.0% to 1.2% of revenue annually. This capex is primarily for maintenance, including tooling, branch upgrades, and IT systems, with a focus on digitalization and the Otis ONE IoT rollout.
Why is Otis Worldwide's net working capital negative?+
Otis Worldwide's net working capital is structurally negative, providing a cash flow advantage. This is due to the company receiving advance payments and progress billings for New Equipment, as well as upfront annual payments for its highly profitable Service contracts.
Can I download a financial model for Otis Worldwide?+
Yes, a downloadable Excel financial model for Otis Worldwide is available, providing a sum-of-the-parts equity valuation and cash flow forecast. This model helps analysts assess how the company's profitable Service business balances cyclical challenges in the New Equipment segment.
What are the key segments of Otis Worldwide's business and their profitability?+
Otis Worldwide's business is divided into two segments: Service and New Equipment. The Service segment, encompassing Maintenance & Repair and Modernisation, is highly profitable, contributing approximately 62% of net sales and 87% of operating profit. The New Equipment segment accounts for about 38% of net sales and 13% of operating profit.
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