Is Johnson Controls International Plc overvalued or undervalued?

As of 17 October 2025, the valuation grade for Johnson Controls International Plc moved from fair to very expensive, indicating a significant shift in its perceived value. The company appears 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 to its peers, GE Aerospace has a much higher P/E ratio of 136.79, while Trane Technologies Plc shows a more reasonable P/E of 35.38, highlighting the relative overvaluation of Johnson Controls.
Despite its strong recent performance, with a year-to-date return of 37.88% compared to the S&P 500's 13.30%, the valuation metrics suggest that the stock may not be a sustainable investment at these levels. Overall, the combination of high valuation ratios and the recent grade change supports the conclusion that Johnson Controls International Plc is overvalued.