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Otis Worldwide (OTIS) has announced a significant upgrade to its Gen3 Core elevator lineup, now featuring larger door openings, increased load capacity, and smart digital enhancements. These additions are designed to better serve low-rise buildings across the U.S. and Canada.

See our latest analysis for Otis Worldwide.

These Gen3 Core enhancements arrive as Otis Worldwide’s share price has traded sideways recently, holding near $88.85. The company has achieved a long-term total shareholder return of 47% over five years, indicating steady value creation. While the year’s total return is down 12%, momentum is showing subtle signs of recovery with a modest 2.9% gain in the last three months. This suggests investors may be responding to product innovations and renewed growth prospects.

If news of Otis’s upgraded technology has you curious about what else might be out there, it could be the perfect time to discover fast growing stocks with high insider ownership

With these product upgrades and a modest recent rebound in share price, is Otis currently undervalued by the market and offering a compelling entry point, or is future growth already reflected in today’s price?

Otis Worldwide’s most widely followed narrative sees the stock trading well below an updated fair value estimate, with share price lagging advanced growth projections. This fair value suggests analysts are seeing upside potential from today’s $88.85 closing price.

The accelerating momentum in modernization orders, up 22% in the quarter and supported by a record-high backlog, positions Otis to benefit from the global trend of aging building infrastructure. This trend is expected to drive a multi-year growth cycle for modernization and associated high-margin service revenue, with a positive impact on both revenue and earnings.

Read the complete narrative.

Ready to see the big drivers behind Otis’s surge in fair value? Earnings projections, margin gains, and a play for future market share are at the core of this story. Analysts are betting on growth levers you might not expect. Discover how ambitious assumptions are shaping this price target.

Result: Fair Value of $103.25 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, persistent weakness in China or a downturn in commercial real estate demand could quickly erode Otis’s growth outlook and undermine current analyst optimism.

Find out about the key risks to this Otis Worldwide narrative.

While fair value estimates signal Otis shares are undervalued, a look at the price-to-earnings ratio offers a different angle. Otis trades at 25.7 times earnings, slightly above the Machinery industry’s average of 24.8 but noticeably below the peer average of 33.9. The fair ratio our models suggest is 26.7, indicating that today’s pricing leaves little room for error if industry sentiment shifts. Could valuation risks outweigh the upside if growth fails to accelerate?

See what the numbers say about this price — find out in our valuation breakdown.

If you see the numbers differently or want to dig deeper into the data yourself, you can shape your own Otis Worldwide narrative in just a few minutes. Do it your way.

A great starting point for your Otis Worldwide research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

Smart investing means staying ahead of the curve. Don’t miss your chance to uncover stocks redefining growth, value, and innovation using Simply Wall Street’s powerful tools.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include OTIS.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

• Wondering if Amneal Pharmaceuticals is a hidden value or a stock that’s already run its course? You’re not alone, and plenty of investors are taking a close look at the numbers right now.

• After an incredible 61.3% gain year-to-date and a remarkable 415.2% return over three years, the share price has caught serious momentum. This suggests growing optimism or changing risk perceptions around the company.

• Much of the recent buzz traces back to industry developments and regulatory updates that have placed Amneal in the spotlight, sparking both excitement and debate among market watchers. Wider trends in generic pharmaceuticals and recent product approvals have fueled speculation about the company’s next moves.

• Based on our valuation framework, Amneal scores 5 out of 6 on our valuation checks, which puts it ahead of most of its peers. Here is a closer look at what those metrics really mean, along with a fresh perspective on finding real value that goes beyond the basics.

Amneal Pharmaceuticals delivered 51.4% returns over the last year. See how this stacks up to the rest of the Pharmaceuticals industry.

The Discounted Cash Flow (DCF) model estimates a company’s intrinsic value by projecting future cash flows and then discounting them back to their present value. This approach helps investors understand what the company is truly worth today based on expected future performance.

For Amneal Pharmaceuticals, the DCF analysis uses a two-stage Free Cash Flow to Equity method. The latest reported Free Cash Flow is $245.66 Million, with analysts expecting robust growth ahead. By 2027, projections place annual Free Cash Flow at $500 Million. Extrapolations suggest that figure could reach over $1.1 Billion by 2035, reflecting continued future expansion. Analyst estimates provide inputs for the first five years, while longer-term numbers are modeled by Simply Wall St using industry growth trends.

Based on this model, the estimated intrinsic value of Amneal Pharmaceuticals is $69.18 per share. In comparison to its current share price, this result indicates the stock trades at a significant 81.9% discount relative to its calculated fair value, which suggests potential undervaluation.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Amneal Pharmaceuticals is undervalued by 81.9%. Track this in your watchlist or portfolio, or discover 914 more undervalued stocks based on cash flows.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Amneal Pharmaceuticals.

The price-to-sales (P/S) ratio is often the preferred valuation metric for companies like Amneal Pharmaceuticals, especially when profits are relatively low or volatile but revenue trends remain steady. For profitable companies, the P/S ratio offers a clear sense of what investors are willing to pay for each dollar of sales. This makes it a practical tool for comparing valuations, particularly in fast-evolving sectors such as pharmaceuticals.

It is important to remember that growth expectations and company-specific risks play a large role in determining what constitutes a “normal” or fair P/S ratio. Companies with higher growth rates or lower risks typically warrant a higher ratio, while those facing headwinds tend to trade at a lower ratio.

Currently, Amneal trades at a P/S ratio of 1.34x. This compares to the pharmaceutical industry average of 4.18x and the peer average of 17.11x, suggesting the market is placing a lower value on each dollar of Amneal’s sales relative to its competitors.

However, Simply Wall St’s proprietary Fair Ratio goes further by factoring in unique aspects of Amneal’s business, such as its projected earnings growth, profit margin profile, market capitalization, and any business-specific risks. Unlike a simple peer or industry comparison, the Fair Ratio is a comprehensive benchmark designed to reflect what the multiple truly should be. Amneal’s Fair Ratio is 2.90x.

Comparing Amneal’s current multiple to the Fair Ratio indicates the stock is meaningfully undervalued by this measure, with a significant gap between its P/S of 1.34x and its Fair Ratio of 2.90x.

Result: UNDERVALUED

PS ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1437 companies where insiders are betting big on explosive growth.

Earlier we mentioned that there is an even better way to understand valuation, so let’s introduce you to Narratives. A Narrative is your personalized story behind a stock. It connects your expectations for the company’s future (such as revenue growth, earnings, and margins) with a financial forecast and a resulting fair value, all in one place.

Rather than just relying on static metrics, Narratives add context to the numbers by letting you articulate the key drivers and risks you believe matter most. On Simply Wall St’s Community page, millions of investors use Narratives to build, compare, and follow these dynamic investment outlooks, making them both accessible and actionable.

Narratives make it easy to monitor your investment rationale: they continuously show how your fair value compares to the current price, and automatically update whenever news or financial results change the outlook.

For example, some investors see Amneal Pharmaceuticals’ global expansion and robust pipeline as reasons to assign a higher fair value, while others point to industry risks and high debt as justification for more conservative estimates. Narratives help you weigh both perspectives, ensuring that your investment decision is shaped by your own view, not just the latest headline.

Do you think there’s more to the story for Amneal Pharmaceuticals? Head over to our Community to see what others are saying!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include AMRX.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com