Allegion plc

NYSE:ALLE Stock Report

Market Cap: US$12.1b

Allegion Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

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 ($141.41) is trading above our estimate of fair value ($122.55)

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

Key Valuation Metric

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

Key metric: As ALLE is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ALLE. This is calculated by dividing ALLE's market cap by their current earnings.
What is ALLE's PE Ratio?
PE Ratio21.5x
EarningsUS$572.00m
Market CapUS$12.12b

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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.8x
AOS A. O. Smith
18.9x5.5%US$10.4b
WMS Advanced Drainage Systems
20.2x5.8%US$10.0b
OC Owens Corning
16.4x14.3%US$16.7b
SSD Simpson Manufacturing
23.8x8.9%US$7.5b
ALLE Allegion
21.5x8.5%US$12.1b

Price-To-Earnings vs Peers: ALLE is expensive based on its Price-To-Earnings Ratio (21.5x) compared to the peer average (19.8x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
AUVI.Q Applied UV
n/an/aUS$4.00
No more companies available in this PE range
ALLE 21.5xIndustry Avg. 21.5xNo. of Companies8PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ALLE is good value based on its Price-To-Earnings Ratio (21.5x) compared to the US Building industry average (21.5x).

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 Ratio21.5x
Fair PE Ratio21x

Price-To-Earnings vs Fair Ratio: ALLE is expensive based on its Price-To-Earnings Ratio (21.5x) compared to the estimated Fair Price-To-Earnings Ratio (21x).

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$141.41
US$148.11
+4.7%
9.9%US$165.00US$110.00n/a10
Nov ’25US$139.83
US$148.11
+5.9%
9.9%US$165.00US$110.00n/a10
Oct ’25US$144.97
US$139.56
-3.7%
9.6%US$152.00US$110.00n/a11
Sep ’25US$138.84
US$138.01
-0.6%
9.5%US$152.00US$110.00n/a11
Aug ’25US$132.29
US$137.08
+3.6%
9.2%US$152.00US$110.00n/a11
Jul ’25US$115.74
US$136.08
+17.6%
11.6%US$152.00US$95.00n/a11
Jun ’25US$121.82
US$136.35
+11.9%
11.0%US$152.00US$95.00n/a11
May ’25US$121.06
US$136.35
+12.6%
11.0%US$152.00US$95.00n/a11
Apr ’25US$132.32
US$134.16
+1.4%
11.7%US$152.00US$95.00n/a12
Mar ’25US$126.80
US$132.67
+4.6%
12.0%US$152.00US$95.00n/a12
Feb ’25US$127.23
US$128.31
+0.8%
11.2%US$152.00US$95.00n/a13
Jan ’25US$126.69
US$122.15
-3.6%
11.2%US$142.00US$95.00n/a13
Dec ’24US$108.69
US$121.46
+11.8%
10.7%US$142.00US$95.00n/a13
Nov ’24US$98.92
US$121.75
+23.1%
11.9%US$145.00US$95.00US$139.8312
Oct ’24US$104.20
US$126.77
+21.7%
9.0%US$145.00US$95.00US$144.9713
Sep ’24US$114.75
US$126.77
+10.5%
9.0%US$145.00US$95.00US$138.8413
Aug ’24US$116.13
US$127.31
+9.6%
8.6%US$145.00US$95.00US$132.2913
Jul ’24US$120.02
US$124.69
+3.9%
7.8%US$135.00US$95.00US$115.7413
Jun ’24US$104.76
US$124.69
+19.0%
7.8%US$135.00US$95.00US$121.8213
May ’24US$110.68
US$123.67
+11.7%
8.7%US$135.00US$95.00US$121.0612
Apr ’24US$106.73
US$124.27
+16.4%
9.3%US$138.00US$95.00US$132.3211
Mar ’24US$112.41
US$124.67
+10.9%
9.0%US$138.00US$95.00US$126.8012
Feb ’24US$120.05
US$119.83
-0.2%
9.2%US$133.00US$95.00US$127.2312
Jan ’24US$105.26
US$118.42
+12.5%
8.9%US$133.00US$95.00US$126.6912
Dec ’23US$114.06
US$117.67
+3.2%
8.6%US$133.00US$95.00US$108.6912
Nov ’23US$106.56
US$117.23
+10.0%
7.8%US$133.00US$95.00US$98.9213

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

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