Is Johnson Controls International Plc overvalued or undervalued?

As of 17 October 2025, the valuation grade for Johnson Controls International Plc has moved from fair to very expensive, indicating a significant shift in its perceived value. The company appears overvalued based on its current metrics. Key ratios include a P/E ratio of 25, an EV to EBITDA of 18.88, and a Price to Book Value of 4.51, all of which suggest that the stock is trading at a premium compared to its peers.
In comparison to its industry, Johnson Controls has a higher P/E ratio than GE Aerospace, which stands at 31.07, and a significantly higher EV to EBITDA than Trane Technologies Plc at 25.29. The company's robust dividend yield of 141.33% is notable, but it does not sufficiently offset the high valuation ratios. Additionally, Johnson Controls has outperformed the S&P 500 with a year-to-date return of 37.88% compared to the index's 13.30%, reinforcing the narrative of a stock that, while performing well, may be overvalued.