Latest Ratios: P/E Ratio 18.8x · EV/EBITDA 14.1x · ROE 36.1%. (2012–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $12.0B | $13.8B | $11.4B | $11.2B | $9.3B | $12.0B | $10.8B | $11.7B | $7.6B | $7.6B | $6.2B |
| Enterprise Value | $14.0B | $15.7B | $13.1B | $12.7B | $11.1B | $13.0B | $11.7B | $12.8B | $8.8B | $8.6B | $7.4B |
| P/E Ratio → | 18.84 | 21.40 | 19.16 | 20.70 | 20.28 | 24.80 | 34.33 | 29.23 | 17.56 | 27.92 | 27.12 |
| P/S Ratio | 2.96 | 3.39 | 3.03 | 3.06 | 2.84 | 4.18 | 3.97 | 4.11 | 2.79 | 3.17 | 2.77 |
| P/B Ratio | 5.86 | 6.66 | 7.63 | 8.49 | 9.84 | 15.72 | 12.97 | 15.44 | 11.66 | 18.84 | 53.28 |
| P/FCF | 17.56 | 20.09 | 19.64 | 21.66 | 23.50 | 27.04 | 24.37 | 27.79 | 18.66 | 25.64 | 18.51 |
| P/OCF | 15.37 | 17.57 | 16.96 | 18.63 | 20.23 | 24.53 | 22.03 | 24.06 | 16.66 | 22.00 | 16.43 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.86 | 3.47 | 3.49 | 3.39 | 4.54 | 4.32 | 4.49 | 3.22 | 3.59 | 3.29 |
| EV / EBITDA | 14.12 | 15.87 | 14.55 | 15.53 | 16.22 | 21.25 | 24.25 | 19.78 | 14.36 | 15.46 | 14.67 |
| EV / EBIT | 16.25 | 18.26 | 16.35 | 17.93 | 18.80 | 22.69 | 28.21 | 24.13 | 16.61 | 17.25 | 20.46 |
| EV / FCF | — | 22.89 | 22.46 | 24.66 | 28.07 | 29.40 | 26.51 | 30.33 | 21.51 | 29.03 | 21.95 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 45.2% | 45.2% | 44.2% | 43.3% | 40.4% | 42.0% | 43.3% | 43.9% | 43.0% | 44.6% | 44.2% |
| Operating Margin | 21.1% | 21.1% | 20.7% | 19.4% | 17.9% | 18.5% | 14.8% | 19.8% | 19.2% | 20.5% | 19.4% |
| Net Profit Margin | 15.8% | 15.8% | 15.8% | 14.8% | 14.0% | 16.8% | 11.6% | 14.1% | 15.9% | 11.3% | 10.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 36.1% | 36.1% | 42.4% | 47.8% | 53.7% | 60.6% | 39.5% | 56.8% | 82.1% | 104.7% | 313.6% |
| ROA | 13.3% | 13.3% | 13.6% | 13.0% | 13.0% | 15.8% | 10.4% | 13.9% | 16.3% | 11.4% | 10.1% |
| ROIC | 18.1% | 18.1% | 19.5% | 18.9% | 19.3% | 22.2% | 16.7% | 23.2% | 24.4% | 27.5% | 24.9% |
| ROCE | 20.8% | 20.8% | 22.2% | 21.7% | 20.4% | 21.2% | 16.1% | 23.8% | 24.1% | 25.3% | 23.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.10 | 1.10 | 1.43 | 1.53 | 2.22 | 1.89 | 1.72 | 1.88 | 2.21 | 3.64 | 12.58 |
| Debt / EBITDA | 2.30 | 2.30 | 2.39 | 2.46 | 3.06 | 2.35 | 2.95 | 2.20 | 2.36 | 2.64 | 2.92 |
| Net Debt / Equity | — | 0.93 | 1.10 | 1.17 | 1.91 | 1.37 | 1.14 | 1.41 | 1.78 | 2.49 | 9.89 |
| Net Debt / EBITDA | 1.94 | 1.94 | 1.83 | 1.89 | 2.64 | 1.70 | 1.96 | 1.65 | 1.90 | 1.81 | 2.30 |
| Debt / FCF | — | 2.80 | 2.83 | 3.00 | 4.57 | 2.36 | 2.14 | 2.54 | 2.84 | 3.39 | 3.44 |
| Interest Coverage | 8.51 | 8.51 | 7.85 | 7.63 | 7.78 | 11.44 | 8.15 | 9.49 | 9.80 | 4.74 | 5.59 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.84 | 1.84 | 2.04 | 1.26 | 1.73 | 1.86 | 2.20 | 1.98 | 1.79 | 2.24 | 1.93 |
| Quick Ratio | 1.16 | 1.16 | 1.43 | 0.85 | 1.05 | 1.23 | 1.65 | 1.44 | 1.25 | 1.72 | 1.42 |
| Cash Ratio | 0.47 | 0.47 | 0.72 | 0.43 | 0.41 | 0.66 | 0.92 | 0.70 | 0.54 | 1.01 | 0.73 |
| Asset Turnover | — | 0.78 | 0.84 | 0.85 | 0.82 | 0.94 | 0.89 | 0.96 | 0.97 | 0.95 | 1.00 |
| Inventory Turnover | 4.29 | 4.29 | 4.97 | 4.72 | 4.07 | 4.37 | 5.44 | 5.93 | 5.56 | 5.57 | 5.66 |
| Days Sales Outstanding | — | 41.97 | 43.42 | 42.16 | 45.06 | 36.06 | 46.65 | 42.18 | 45.47 | 46.80 | 44.34 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.4% | 1.3% | 1.5% | 1.4% | 1.5% | 1.1% | 1.1% | 0.9% | 1.0% | 0.8% | 0.7% |
| Payout Ratio | 27.2% | 27.2% | 27.9% | 29.4% | 31.4% | 26.7% | 37.3% | 25.0% | 18.3% | 22.3% | 20.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.3% | 4.7% | 5.2% | 4.8% | 4.9% | 4.0% | 2.9% | 3.4% | 5.7% | 3.6% | 3.7% |
| FCF Yield | 5.7% | 5.0% | 5.1% | 4.6% | 4.3% | 3.7% | 4.1% | 3.6% | 5.4% | 3.9% | 5.4% |
| Buyback Yield | 0.7% | 0.6% | 1.9% | 0.5% | 0.7% | 3.4% | 1.9% | 1.9% | 0.9% | 0.8% | 1.4% |
| Total Shareholder Yield | 2.1% | 1.9% | 3.4% | 2.0% | 2.2% | 4.5% | 3.0% | 2.8% | 1.9% | 1.6% | 2.1% |
| Shares Outstanding | — | $87M | $88M | $88M | $88M | $91M | $93M | $94M | $96M | $96M | $97M |
Commercial construction cycle sensitivity
Based on current market data, Allegion trades at a forward P/E of 15.91, which appears to reflect a quality premium over diversified industrial peers, suggesting investors are pricing in the defensive, utility-like nature of its institutional specification business rather than standard cyclical building product multiples.
The current valuation implies a market expectation of sustained margin stability despite the ongoing transition toward electronic access control. While the P/E ratio is higher than some cyclical peers, it remains justifiable if the company continues to leverage its entrenched position in K-12 and healthcare infrastructure to maintain pricing power.
As reported in financial statements, Allegion's ROIC has fluctuated between 3.7% and 5.2% over the last ten quarters, indicating that while the company generates consistent returns, the integration of large-scale acquisitions like Stanley Access Technologies has temporarily diluted the efficiency of its invested capital base.
The trend suggests that management is currently prioritizing market share expansion and service-heavy capabilities over immediate capital efficiency. Investors should monitor whether ROIC trends upward as these acquired assets reach full operational maturity and the company realizes expected synergies.
According to recent quarterly filings, Allegion's cash conversion cycle has remained elevated, reaching 83 days in 2026Q1, which highlights the company's susceptibility to inventory management challenges within its North American commercial distribution network and the inherent complexity of its multi-channel supply chain operations.
The persistence of a high CCC suggests that the company must maintain significant inventory levels to support its specification-led business model. This operational reality warrants further investigation into whether recent inventory build-ups are a strategic buffer against supply chain volatility or a sign of slowing sell-through in the channel.
The most commonly misapplied ratio for Allegion is the P/S multiple, which fails to account for the high-margin, recurring nature of the company's institutional replacement business, often leading analysts to incorrectly categorize the firm as a purely cyclical residential building products manufacturer.
By focusing on top-line revenue multiples, the market obscures the structural moat provided by long-term building code compliance and institutional maintenance cycles. A more appropriate analytical framework would prioritize EV/EBITDA or FCF yield, which better capture the cash-generative capacity of the company's entrenched installed base.
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Quick answers to the most common questions about buying ALLE stock.
Allegion plc's current P/E ratio is 18.8x. The historical average is 34.8x. This places it at the 8th percentile of its historical range.
Allegion plc's current EV/EBITDA is 14.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 17.4x.
Allegion plc's return on equity (ROE) is 36.1%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 71.5%.
Based on historical data, Allegion plc is trading at a P/E of 18.8x. This is at the 8th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Allegion plc's current dividend yield is 1.45% with a payout ratio of 27.2%.
Allegion plc has 45.2% gross margin and 21.1% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Allegion plc's Debt/EBITDA ratio is 2.3x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.