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Allegion Public Limited Company (ALLE) — WACC Analysis

WACC Breakdown

Allegion Public Limited Company (ALLE) has a weighted average cost of capital (WACC) of 8.3%. The cost of equity is 9.0%, derived from a beta of 0.85 and a risk-free rate of 5.2%. The after-tax cost of debt is 3.9%. The capital structure is 86.7% equity and 13.3% debt.

Interpretation

A WACC of 8.3% is moderate, reflecting the market's balanced risk assessment of Allegion Public Limited Company.

Investors can compare ALLE's WACC of 8.3% against industry peers to gauge its relative financing costs. A beta of 0.85 reflects the stock's volatility relative to the broader market.

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VALUATION

ALLE WACC: 8.32% for Allegion Public Limited Company

Current inputs imply a 9.00% cost of equity and a 4.96% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Allegion Public Limited Company Common Stock (ALLE) WACC Results
Weighted Average Cost of Capital
8.32%
Cost of Equity
9.00%
Risk-Free Rate5.19%
Beta0.85
Market Risk Premium4.23%
Cost of Debt
3.92%
Pre-Tax Cost of Debt4.96%
Tax Rate21.00%
Tax Shield1.04%
Capital Structure
Equity: 86.70%($13.24B)
Debt: 13.30%($2031.10M)
Equity Component
7.80%
86.70% × 9.00%
Debt Component
0.52%
13.30% × 3.92%

Allegion Public Limited Company (ALLE) WACC in context

Allegion Public Limited Company (ALLE) currently screens with an estimated WACC of 8.32%. That blends a 9.00% cost of equity, a 4.96% pre-tax cost of debt, and a 86.70% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What ALLE WACC implies

A 8.32% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates ALLE

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.85 and equity accounts for 86.70% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.