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Stocks ALLE DCF valuation

DCF valuation

What is Allegion plc worth?

With the base-case assumptions below, a discounted cash flow model on Allegion plc's reported free cash flow gives $158.84 per share. The share price was $189.49 on November 10, 2026, 19% above that value.

Inputs from the filings

Free cash flow, fiscal 2025
$685.7M
Average free cash flow, last 5 years
$524.7M
Cash
$388.1M
balance sheet of September 30, 2026
Debt
$2.03B
balance sheet of September 30, 2026
Diluted shares, fiscal 2025
86,600,000
Revenue growth per year, last 5 years
8.4%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear3.5%3.0%2.0%10.0%$91.78-52%
Base8.5%5.5%2.5%9.0%$158.84-16%
Bull13.5%8.5%3.0%8.0%$292.52+54%

Sensitivity: base case value per share

Discount rate down the side, growth after year 10 across the top. Everything else as in the base case.

1.5%2.0%2.5%3.0%3.5%
7.0%$208.98$224.36$243.17$266.68$296.91
8.0%$171.50$181.48$193.27$207.42$224.72
9.0%$144.14$150.96$158.84$168.02$178.88
10.0%$123.32$128.17$133.67$139.96$147.21
11.0%$106.97$110.53$114.51$118.98$124.05

Where the presets come from

Base: years 1 to 5 grow at Allegion plc's revenue growth rate over the last 5 fiscal years (8.4% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.

Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.

Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.

This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.

Adjust the assumptions

Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.

Adjust the assumptions

Allegion plc company page