Is Allegion Plc overvalued or undervalued?

As of 17 October 2025, Allegion Plc's valuation grade has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently overvalued, as reflected by its P/E ratio of 19, which is lower than the peer average of 23.73, and its EV to EBITDA ratio of 14.65 compared to the peer average of 17.46. Additionally, Allegion's PEG ratio of 1.59 suggests that its growth is not sufficient to justify its high valuation relative to its earnings growth.
In comparison to its peers, Otis Worldwide Corp. has a P/E ratio of 21.12, while Carlisle Cos., Inc. stands at a much higher 33.32, reinforcing the notion that Allegion is overvalued within its industry. Despite recent stock performance showing a YTD return of 35.82% compared to the S&P 500's 13.30%, the long-term outlook appears less favorable, with a 10-year return of 69.05% against the S&P 500's 227.77%.