Carlisle Companies (CSL) Stock Valuation Diverges After Recent Rally

Carlisle Companies' share price has recently rallied, but its year-to-date return is -13.7% and its 1-year total shareholder return is -30.6%. Despite the momentum, the company's five-year total shareholder returns exceed 125%. Its valuation is currently below the most popular narrative, suggesting potential upside, but sustained weakness in new construction and limited pricing power could challenge optimistic assumptions. The SWS DCF model suggests the shares are trading above fair value, implying potential downside risk.