ALLENEUTRAL

EV/EBITDA

15.8x

Higher than 65% of Industrials sector peers

Updated 1926h ago

Sector Performance

65th percentile

ALLE

15.8x

Sector Median

14.3x

Sector Avg

25.7x

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Deep Analysis

Allegion's current EV/EBITDA of 15.8x means the company's enterprise value (total market value including debt and cash) is 15.8 times its earnings before interest, taxes, depreciation, and amortization — a measure of operating cash profit.

This ratio is below the Industrials sector median of 19.0x, placing it in the 35th percentile among peers, indicating a lower valuation relative to the sector. The metric has been perfectly stable over the last 8 quarters, with a year-over-year change of +0.0% and a quarter-over-quarter change of +0.0%. A below-median valuation paired with zero movement suggests limited opportunity for multiple expansion but also low risk of a sharp decline. This combination supports the overall NEUTRAL verdict, as the metric shows neither compelling undervaluation nor overvaluation relative to peers.

Frequently Asked Questions

What does the EV/EBITDA tell investors about ALLE?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

How does ALLE's EV/EBITDA compare to its sector?

ALLE's EV/EBITDA of 15.8x compares to a Industrials sector median of 14.3x, placing it in the 65th percentile.

Who are ALLE's closest peers by EV/EBITDA?

The closest Industrials peers by EV/EBITDA include: POOL (14.3x), ROP (14.4x), MMM (14.5x), AOS (11.8x), AAL (11.4x).

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.