Is Allegion Plc overvalued or undervalued?

As of 17 October 2025, the valuation grade for Allegion Plc has moved from expensive to very expensive, indicating a significant concern regarding its current market valuation. The company appears overvalued based on several key ratios, including a P/E ratio of 19, an EV to EBITDA of 14.65, and a Price to Book Value of 7.45. In comparison, peers such as Otis Worldwide Corp. have a P/E of 21.12 and an EV to EBITDA of 19.78, while Carlisle Cos., Inc. shows a much higher P/E of 33.32, further underscoring Allegion's elevated valuation relative to its industry.
Despite showing strong returns, with a year-to-date return of 35.82% compared to the S&P 500's 13.30%, the company's long-term performance has lagged, particularly over the 10-year period where it returned 69.05% against the S&P 500's 227.77%. This disparity highlights the potential risks of investing in Allegion at its current valuation levels.