Is Johnson Controls International Plc overvalued or undervalued?

As of 29 July 2025, the valuation grade for Johnson Controls International Plc has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company appears to be overvalued based on its current metrics, with a P/E ratio of 25, a Price to Book Value of 4.51, and an EV to EBITDA of 18.88. In comparison, peers such as GE Aerospace have a P/E ratio of 136.79, while Trane Technologies Plc has a more reasonable P/E of 35.38, highlighting the disparity in valuation within the industry.
Despite the overvaluation, Johnson Controls has shown strong performance, with a year-to-date return of 37.44%, significantly outperforming the S&P 500's return of 12.22% over the same period. However, its long-term performance shows a stark contrast, with a 10-year return of 153.58% compared to the S&P 500's 231.64%, suggesting that while the stock has performed well recently, it has lagged behind the broader market over the long term.