Is Allegion Plc overvalued or undervalued?

As of 11 September 2025, the valuation grade for Allegion Plc moved from expensive to very expensive, indicating a significant shift in its perceived value. The company appears to be overvalued based on key metrics, including a P/E ratio of 19, a Price to Book Value of 7.45, and an EV to EBITDA of 14.65. In comparison, peers such as Otis Worldwide Corp. have a P/E of 21.12 and EV to EBITDA of 19.78, while Carlisle Cos., Inc. shows a much higher P/E of 33.32, underscoring Allegion's relative valuation concerns.
Despite a strong year-to-date return of 36.81% compared to the S&P 500's 12.22%, the long-term performance shows a decline, with a 10-year return of 73.15% against the S&P's 231.64%. This suggests that while Allegion has performed well recently, its high valuation ratios may not be sustainable in the long run.