Allegion plc (ALLE) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+10.1%

$211.35

vs $191.88 price

Levered DCF

$198.50

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

5.04

Safe zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	21.26×	19.08×	20.6×	20.24×	24.66×	34.13×	29.03×	17.4×
P/B	6.61×	7.59×	8.45×	9.84×	15.68×	12.95×	15.39×	11.63×
P/S	3.36×	3.02×	3.05×	2.83×	4.15×	3.95×	4.08×	2.77×
EV / EBITDA	15.56×	14.22×	15.43×	16.08×	19.7×	23.5×	20.73×	14.19×
Gross margin	45.2%	44.2%	43.3%	40.4%	42.0%	43.3%	43.9%	43.0%
Operating margin	21.1%	20.7%	19.4%	17.9%	18.5%	14.8%	19.8%	19.2%
Net margin	15.8%	15.8%	14.8%	14.0%	16.8%	11.6%	14.1%	15.9%
Current ratio	1.84×	2.04×	1.26×	1.73×	1.86×	2.2×	1.98×	1.79×
Debt / equity	1.1×	1.43×	1.53×	2.22×	1.9×	1.72×	1.89×	2.22×
Interest coverage	8.51×	7.65×	7.61×	7.73×	10.56×	7.9×	10.09×	9.74×
Dividend yield	1.3%	1.5%	1.4%	1.6%	1.1%	1.1%	0.9%	1.0%
Payout ratio	27.2%	27.9%	29.4%	31.4%	26.7%	37.3%	25.0%	18.3%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	31.1%	39.8%	41.0%	48.6%	63.6%	37.9%	53.0%	66.8%
Return on invested capital	16.0%	17.3%	17.0%	15.8%	19.9%	13.6%	19.4%	20.7%
Return on assets	12.3%	13.3%	12.5%	11.5%	15.8%	10.2%	13.5%	15.5%
Free cash flow yield	5.0%	5.1%	4.6%	4.3%	3.7%	4.1%	3.6%	5.4%
Earnings yield	4.7%	5.2%	4.9%	4.9%	4.1%	2.9%	3.4%	5.7%
Enterprise value	$15.6B	$13B	$12.7B	$11.1B	$13B	$11.7B	$12.7B	$8.7B
Net debt / EBITDA	1.92×	1.8×	1.88×	2.62×	1.59×	1.91×	1.75×	1.89×
Cash conversion cycle (days)	87	72	74	82	63	61	53	56