Is Allegion Plc overvalued or undervalued?

As of 26 September 2025, the valuation grade for Allegion Plc has moved from expensive to very expensive, indicating a significant concern regarding its current valuation. The company appears to be overvalued based on its key ratios, 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 an EV to EBITDA of 19.78, while Watsco, Inc. shows even higher valuations with a P/E of 31.06.
Despite a strong year-to-date return of 33.92%, which outperformed the S&P 500's 12.96%, the overall valuation metrics suggest that Allegion Plc is not justified at its current price levels. Given these factors, the company is deemed overvalued.