Allegion (ALLE): Assessing Valuation Following New Product Features and Strategic Brivo Partnership

Allegion, a US-based leader in access solutions, just rolled out advanced enhancements to its LCN Senior Swing automatic door operators. The new features incorporate AdaptivIQ technology, which provides smoother performance in busy environments. The company also revealed a strategic partnership with Brivo.

See our latest analysis for Allegion.

Alongside new product launches and recent showings at major security industry expos, Allegion’s share price has climbed 25% year-to-date, with a 1-year total shareholder return of nearly 17%. Despite a short-term dip this month, the longer-term momentum remains firmly positive, supported by both innovation and upbeat earnings outlooks.

If Allegion’s focus on tech-powered access has you searching for standout peers, now is a great time to widen your view and discover See the full list for free.

Given Allegion’s recent surge and ongoing investment in innovation, the key question is whether its current valuation offers room for upside or if investors are already paying for future success. Is there still a window for buyers, or has the market already priced in what comes next?

Most Popular Narrative: 12% Undervalued

With Allegion closing at $160.68 and a widely followed fair value set at $183.09, the narrative points to meaningful upside compared to today’s price. The market appears to be lagging behind expectations for the next phase of growth, setting the stage for a recalibration if narrative assumptions hold true.

Strategic investments in electronic/software acquisitions (ELATEC, Gatewise, Waitwhile) are expected to drive new recurring revenue streams and margin accretion starting in 2026. These initiatives aim to enhance both top-line growth and net margin profile as SaaS and high-margin hardware increase their share of the portfolio.

Read the complete narrative.

What’s behind this bullish perspective? One aspect is a bold vision for margin expansion and recurring revenue. Another factor is a quantitative leap in future earnings. The exact numbers and assumptions are more aggressive than many expect. Want to see which financial changes drive this price target? Check out the full narrative for the surprising details.

Result: Fair Value of $183.09 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent international weakness or a downturn in nonresidential demand could quickly undermine Allegion’s upbeat projections and reduce the current optimism.

Find out about the key risks to this Allegion narrative.

Another View: The Multiples Perspective

While some see Allegion as undervalued based on fair value estimates, our review of the company’s price-to-earnings ratio tells a different story. At 21.6x, Allegion trades well above the US Building industry average of 16.8x and its peer average of 18.6x. This premium suggests the market expects more growth from Allegion compared to its competition, but it also means investors face greater downside if those expectations are not met. The fair ratio stands at 22.2x, so it remains to be seen whether the market will hold at a premium or adjust if growth stalls.

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Allegion Narrative

If you see the story differently or want to dive into the numbers yourself, you can quickly build and share your own perspective in just a few minutes. Do it your way

A great starting point for your Allegion research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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