Is Otis Worldwide Corp. overvalued or undervalued?

As of 6 May 2020, the valuation grade for Otis Worldwide Corp. moved from expensive to risky, indicating a shift in perception regarding its market value. The company appears to be overvalued given its P/E ratio of 23, which is higher than the peer average of approximately 21.12, and an EV to EBITDA ratio of 21.29, also above the industry benchmark. Additionally, the PEG ratio stands at 2.58, suggesting that the stock may not be justified by its growth prospects.
In comparison to its peers, Carlisle Cos., Inc. has a significantly higher P/E ratio of 33.32, while Masco Corp. is valued more favorably with a P/E of 18.57. This indicates that Otis Worldwide Corp. is trading at a premium relative to some competitors, despite its risky valuation grade. Furthermore, the company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -2.44% compared to the index's 12.22%, reinforcing the notion that the stock may be overvalued.