ALRM Valuation

Alarm.com Holdings Inc

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56.680

+0.89(1.595%)1D

Overview
Forecast
Valuation
Earnings

ALRM Relative Valuation

ALRM's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, ALRM is overvalued; if below, it's undervalued.

Historical Valuation

Alarm.com Holdings Inc (ALRM) is now in the Undervalued zone, suggesting that its current forward PE ratio of 23.23 is considered Undervalued compared with the five-year average of 35.47. The fair price of Alarm.com Holdings Inc (ALRM) is between 64.96 to 100.75 according to relative valuation methord. Compared to the current price of 56.68 USD , Alarm.com Holdings Inc is Undervalued By 12.74%.

Relative Value

Fair Zone

64.96-100.75

Current Price：56.68

12.74%

Undervalued

23.23

Trailing

Forward

14.10

EV/EBITDA

Alarm.com Holdings Inc. (ALRM) has a current EV/EBITDA of 14.10. The 5-year average EV/EBITDA is 21.75. The thresholds are as follows: Strongly Undervalued below 9.58, Undervalued between 9.58 and 15.66, Fairly Valued between 27.83 and 15.66, Overvalued between 27.83 and 33.91, and Strongly Overvalued above 33.91. The current Forward EV/EBITDA of 14.10 falls within the Undervalued range.

18.64

EV/EBIT

Alarm.com Holdings Inc. (ALRM) has a current EV/EBIT of 18.64. The 5-year average EV/EBIT is 46.00. The thresholds are as follows: Strongly Undervalued below -5.04, Undervalued between -5.04 and 20.48, Fairly Valued between 71.53 and 20.48, Overvalued between 71.53 and 97.05, and Strongly Overvalued above 97.05. The current Forward EV/EBIT of 18.64 falls within the Undervalued range.

2.75

Alarm.com Holdings Inc. (ALRM) has a current PS of 2.75. The 5-year average PS is 3.97. The thresholds are as follows: Strongly Undervalued below 1.51, Undervalued between 1.51 and 2.74, Fairly Valued between 5.21 and 2.74, Overvalued between 5.21 and 6.44, and Strongly Overvalued above 6.44. The current Forward PS of 2.75 falls within the Historic Trend Line -Fairly Valued range.

13.32

P/OCF

Alarm.com Holdings Inc. (ALRM) has a current P/OCF of 13.32. The 5-year average P/OCF is 28.79. The thresholds are as follows: Strongly Undervalued below 8.63, Undervalued between 8.63 and 18.71, Fairly Valued between 38.86 and 18.71, Overvalued between 38.86 and 48.94, and Strongly Overvalued above 48.94. The current Forward P/OCF of 13.32 falls within the Undervalued range.

13.98

P/FCF

Alarm.com Holdings Inc. (ALRM) has a current P/FCF of 13.98. The 5-year average P/FCF is 35.42. The thresholds are as follows: Strongly Undervalued below 0.59, Undervalued between 0.59 and 18.00, Fairly Valued between 52.83 and 18.00, Overvalued between 52.83 and 70.25, and Strongly Overvalued above 70.25. The current Forward P/FCF of 13.98 falls within the Undervalued range.

Alarm.com Holdings Inc (ALRM) has a current Price-to-Book (P/B) ratio of 3.54. Compared to its 3-year average P/B ratio of 4.38 , the current P/B ratio is approximately -19.22% higher. Relative to its 5-year average P/B ratio of 5.52, the current P/B ratio is about -35.95% higher. Alarm.com Holdings Inc (ALRM) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.93%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.18% , the current FCF yield is about -100.00% lower.

3.54

P/B

Median3y

4.38

Median5y

5.52

5.91

FCF Yield

Median3y

3.93

Median5y

3.18

Competitors Valuation Multiple

The average P/S ratio for ALRM's competitors is 7.81, providing a benchmark for relative valuation. Alarm.com Holdings Inc Corp (ALRM) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 8.77%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

ALRM.O

Alarm.com Holdings Inc

DigitalOcean Holdings Inc

DoubleVerify Holdings Inc

3.28

21.25%

2.65B

Performance Decomposition

Market capitalization of ALRM decreased by 4.80% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 233.81M to 254.31M.

The secondary factor is the Margin Expansion, contributed -3.31%to the performance.

Overall, the performance of ALRM in the past 1 year is driven by Revenue Growth. Which is more sustainable.

8.77%

233.81M → 254.31M

Revenue Growth

-3.31%

13.91 → 13.45

Margin Expansion

-10.26%

26.62 → 23.89

P/E Change

-4.80%