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 19.60 is considered Undervalued compared with the five-year average of 34.05. The fair price of Alarm.com Holdings Inc (ALRM) is between 61.67 to 102.30 according to relative valuation methord. Compared to the current price of 52.11 USD , Alarm.com Holdings Inc is Undervalued By 15.5%.
Relative Value
Fair Zone
61.67-102.30
Current Price：52.11
15.5%
Undervalued
19.53
PE
1Y
3Y
5Y
Trailing
Forward
12.66
EV/EBITDA
Alarm.com Holdings Inc. (ALRM) has a current EV/EBITDA of 12.66. The 5-year average EV/EBITDA is 20.90. The thresholds are as follows: Strongly Undervalued below 8.42, Undervalued between 8.42 and 14.66, Fairly Valued between 27.14 and 14.66, Overvalued between 27.14 and 33.38, and Strongly Overvalued above 33.38. The current Forward EV/EBITDA of 12.66 falls within the Undervalued range.
15.76
EV/EBIT
Alarm.com Holdings Inc. (ALRM) has a current EV/EBIT of 15.76. The 5-year average EV/EBIT is 45.03. The thresholds are as follows: Strongly Undervalued below -7.57, Undervalued between -7.57 and 18.73, Fairly Valued between 71.33 and 18.73, Overvalued between 71.33 and 97.63, and Strongly Overvalued above 97.63. The current Forward EV/EBIT of 15.76 falls within the Undervalued range.
2.53
PS
Alarm.com Holdings Inc. (ALRM) has a current PS of 2.53. The 5-year average PS is 3.82. The thresholds are as follows: Strongly Undervalued below 1.35, Undervalued between 1.35 and 2.58, Fairly Valued between 5.05 and 2.58, Overvalued between 5.05 and 6.29, and Strongly Overvalued above 6.29. The current Forward PS of 2.53 falls within the Undervalued range.
11.28
P/OCF
Alarm.com Holdings Inc. (ALRM) has a current P/OCF of 11.28. The 5-year average P/OCF is 27.80. The thresholds are as follows: Strongly Undervalued below 6.13, Undervalued between 6.13 and 16.96, Fairly Valued between 38.63 and 16.96, Overvalued between 38.63 and 49.46, and Strongly Overvalued above 49.46. The current Forward P/OCF of 11.28 falls within the Undervalued range.
12.27
P/FCF
Alarm.com Holdings Inc. (ALRM) has a current P/FCF of 12.27. The 5-year average P/FCF is 34.08. The thresholds are as follows: Strongly Undervalued below -2.37, Undervalued between -2.37 and 15.85, Fairly Valued between 52.30 and 15.85, Overvalued between 52.30 and 70.52, and Strongly Overvalued above 70.52. The current Forward P/FCF of 12.27 falls within the Undervalued range.
Alarm.com Holdings Inc (ALRM) has a current Price-to-Book (P/B) ratio of 3.13. Compared to its 3-year average P/B ratio of 4.17 , the current P/B ratio is approximately -24.87% higher. Relative to its 5-year average P/B ratio of 5.28, the current P/B ratio is about -40.64% 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 4.46%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.42% , the current FCF yield is about -100.00% lower.
3.12
P/B
Median3y
4.17
Median5y
5.28
6.00
FCF Yield
Median3y
4.46
Median5y
3.42
Competitors Valuation Multiple
The average P/S ratio for ALRM's competitors is , providing a benchmark for relative valuation. Alarm.com Holdings Inc Corp (ALRM) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 6.61%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of ALRM decreased by 14.61% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 240.50M to 256.40M.
The secondary factor is the Margin Expansion, contributed -9.70%to the performance.
Overall, the performance of ALRM in the past 1 year is driven by Revenue Growth. Which is more sustainable.
People Also Watch
FAQ
Is Alarm.com Holdings Inc (ALRM) currently overvalued or undervalued?
What is Alarm.com Holdings Inc (ALRM) fair value?
How does ALRM's valuation metrics compare to the industry average?
What is the current P/B ratio for Alarm.com Holdings Inc (ALRM) as of Dec 05 2025?
What is the current FCF Yield for Alarm.com Holdings Inc (ALRM) as of Dec 05 2025?
What is the current Forward P/E ratio for Alarm.com Holdings Inc (ALRM) as of Dec 05 2025?