We’ve recently updated our valuation analysis.

Allegion Valuation

Is ALLE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ALLE?

Other financial metrics that can be useful for relative valuation.

ALLE key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.9x
Enterprise Value/EBITDA18.2x
PEG Ratio2.1x

Price to Earnings Ratio vs Peers

How does ALLE's PE Ratio compare to its peers?

The above table shows the PE ratio for ALLE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average14.1x
LII Lennox International
18.2x8.1%US$8.8b
AOS A. O. Smith
18.6x13.5%US$9.2b
OC Owens Corning
6.4x-17.3%US$8.6b
MAS Masco
13.3x4.5%US$11.5b
ALLE Allegion
23.1x10.7%US$10.0b

Price-To-Earnings vs Peers: ALLE is expensive based on its Price-To-Earnings Ratio (23.1x) compared to the peer average (14.1x).


Price to Earnings Ratio vs Industry

How does ALLE's PE Ratio compare vs other companies in the US Building Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a1.5%
n/an/an/a

Price-To-Earnings vs Industry: ALLE is expensive based on its Price-To-Earnings Ratio (23.1x) compared to the US Building industry average (14.7x)


Price to Earnings Ratio vs Fair Ratio

What is ALLE's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ALLE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.1x
Fair PE Ratio19.8x

Price-To-Earnings vs Fair Ratio: ALLE is expensive based on its Price-To-Earnings Ratio (23.1x) compared to the estimated Fair Price-To-Earnings Ratio (19.8x).


Share Price vs Fair Value

What is the Fair Price of ALLE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ALLE ($114.28) is trading above our estimate of fair value ($91.57)

Significantly Below Fair Value: ALLE is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ALLE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$114.28
US$119.83
+4.9%
9.2%US$133.00US$95.00n/a12
Jan ’24US$105.26
US$118.42
+12.5%
8.9%US$133.00US$95.00n/a12
Dec ’23US$114.06
US$117.67
+3.2%
8.6%US$133.00US$95.00n/a12
Nov ’23US$106.56
US$117.23
+10.0%
7.8%US$133.00US$95.00n/a13
Oct ’23US$89.68
US$118.69
+32.4%
5.6%US$132.00US$110.00n/a13
Sep ’23US$95.73
US$119.54
+24.9%
5.6%US$132.00US$110.00n/a13
Aug ’23US$105.37
US$120.08
+14.0%
5.6%US$132.00US$110.00n/a13
Jul ’23US$99.61
US$131.46
+32.0%
9.3%US$156.00US$113.00n/a13
Jun ’23US$111.84
US$134.46
+20.2%
7.7%US$156.00US$115.00n/a13
May ’23US$114.24
US$135.38
+18.5%
6.8%US$156.00US$120.00n/a13
Apr ’23US$111.52
US$141.38
+26.8%
8.1%US$160.00US$126.00n/a13
Mar ’23US$114.63
US$142.46
+24.3%
7.6%US$160.00US$126.00n/a13
Feb ’23US$120.00
US$149.31
+24.4%
10.1%US$170.00US$116.00n/a13
Jan ’23US$132.44
US$149.23
+12.7%
10.1%US$170.00US$116.00US$105.2613
Dec ’22US$122.79
US$149.17
+21.5%
9.9%US$170.00US$116.00US$114.0612
Nov ’22US$129.87
US$148.64
+14.5%
10.3%US$170.00US$116.00US$106.5611
Oct ’22US$132.47
US$149.40
+12.8%
11.5%US$176.00US$114.00US$89.6810
Sep ’22US$144.55
US$145.73
+0.8%
13.0%US$176.00US$112.00US$95.7311
Aug ’22US$136.60
US$145.73
+6.7%
13.0%US$176.00US$112.00US$105.3711
Jul ’22US$140.21
US$141.18
+0.7%
12.0%US$165.00US$109.00US$99.6111
Jun ’22US$139.36
US$140.45
+0.8%
11.9%US$165.00US$109.00US$111.8411
May ’22US$134.38
US$140.45
+4.5%
11.9%US$165.00US$109.00US$114.2411
Apr ’22US$127.75
US$117.82
-7.8%
8.6%US$138.00US$101.00US$111.5211
Mar ’22US$111.70
US$115.80
+3.7%
7.2%US$134.00US$101.00US$114.6310
Feb ’22US$110.32
US$116.11
+5.2%
9.9%US$141.00US$101.00US$120.009
Jan ’22US$116.38
US$113.10
-2.8%
9.6%US$141.00US$101.00US$132.4410

Analyst Forecast: Target price is less than 20% higher than the current share price.


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