Is Allegion Plc overvalued or undervalued?

As of 17 October 2025, the valuation grade for Allegion Plc moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued based on its valuation metrics. Key ratios include a P/E ratio of 19, a Price to Book Value of 7.45, and an EV to EBITDA of 14.65, which suggest that Allegion is trading at a premium compared to its peers.
In comparison to its peers, Allegion's P/E ratio is lower than Otis Worldwide Corp.'s 21.12 but significantly higher than Carlisle Cos., Inc.'s 33.32, indicating a mixed relative valuation landscape. The PEG ratio of 1.59 also suggests that growth expectations may not justify its current price. Notably, while Allegion has outperformed the S&P 500 with a year-to-date return of 35.82% compared to the index's 13.30%, its long-term performance over 10 years shows stagnation with a return of 69.05% against the S&P 500's 227.77%, reinforcing concerns about its current valuation.