Is Otis Worldwide Corp. overvalued or undervalued?

As of 6 May 2020, the valuation grade for Otis Worldwide Corp. moved from very expensive to risky. The company appears to be overvalued based on its current metrics. Key ratios include a P/E ratio of 23, an EV to EBITDA of 21.29, and a PEG ratio of 2.58, which suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to peers, Carlisle Cos., Inc. has a higher P/E ratio of 29.50 and an EV to EBITDA of 20.68, indicating that Otis is relatively less expensive but still carries a risky valuation. Notably, the company's negative book value for ROE raises concerns about its financial health. While Otis has shown a year-to-date return of 3.64%, it lags behind the S&P 500's 2.44% return, reinforcing the notion that the stock may not be a compelling investment at its current price of 95.98.