Allegion (ALLE) Stock Could Be 18% Overvalued After Raised Outlook

Allegion has delivered a strong multi year share price run, fuelled in part by upbeat recent results and higher expectations for its business, which naturally raises a question for investors about how far its current cash flows really go in supporting today's valuation. With the stock recently closing at US$176.52, the issue now is whether that market price lines up with what the company is projected to generate in cash over time. Over the past 3 years Allegion has returned 89.6%, which puts...