Alarm.com Holdings, Inc. (ALRM) is a publicly traded company in the Technology — Software - Application industry listed on NASDAQ. This overview shows the latest price, key valuation ratios, profitability metrics and financial-health indicators used by fundamental investors.
Alarm.com Holdings, Inc. delivers a comprehensive suite of cloud-enabled services tailored for intelligent residential and commercial properties, serving clients across the United States and internationally. The company's operations are divided into two primary divisions: Alarm.com and Other. Its core offerings include interactive security platforms, empowering users to manage and oversee their security systems alongside various connected devices.
Is Alarm.com Holdings, Inc. stock overvalued or undervalued in 2026?
Alarm.com Holdings, Inc. (ALRM) trades at 28.7× earnings (P/E), below the median of the 314 technology companies over $2bn in Kaplio's universe. At the decade median (52.3×) $118 (+82 %); at its sector median (32.0×) $72 (+12 %).
Kaplio overview: Alarm.com Holdings, Inc.
Market cap $3B · 52 weeks $42 – $67 (3 % below the high) · P/E 28.7× · 2027 expected P/E 21.1× · Dividend none · Next earnings November 5, 2026 · expected EPS $0.75 · Closing price, Oct 30 · accounts published Aug 6.
- Valuation: P/E 28.7× (cheap).
- Business: ROIC 7 % (weak).
- Balance sheet: Net debt/EBITDA 0.7× (solid).
- Earnings: 8 of 8 (on track).
What would it be worth at its usual multiples?
At the decade median (52.3×) $118 (+82 %); at its sector median (32.0×) $72 (+12 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.
What matters in technology: 3 of 8 pass
- 3y revenue growth 6.4 %, fails.
- Rule of 40 (SaaS only) 20, fails.
- FCF / Revenue 13.6 %, fails.
- ROIC 7.0 %, fails.
- Gross margin 66.1 %, borderline.
- SBC / Revenue 3.3 %, passes.
- Net debt / EBITDA 0.7×, passes.
- EV/EBITDA vs own 5y 14.9×, passes.
Against its peers (reference peers) — Alarm.com Holdings, Inc.: P/E 28.7×; EV/EBITDA 14.9×; ROIC 7.0 %; $3.2B. Digi International Inc. (P/E 57.7×; EV/EBITDA 25.7×; ROIC 6.6 %; $2.8B), ADT Inc. (P/E 14.1×; EV/EBITDA 5.3×; ROIC 6.3 %; $6.7B), Agilysys, Inc. (P/E 74.2×; EV/EBITDA 47.8×; ROIC 9.5 %; $3.3B).
Expensive or cheap against its last ten years?
P/E at each close: today 28.7× · median 52.3× · minimum 18.2× · maximum 157× · cheap below 41.9× · expensive above 72.8×. It has been cheaper than today only 18% of the time over its last ten years.
Profitability
| Return on Equity | 13.87% |
| Return on Invested Capital | 6.95% |
| Return on Assets | 7.12% |
| Gross Margin | 63.42% |
| Operating Margin | 13.01% |
| Net Margin | 11.11% |
Financial Health
| Debt / Equity | 0.66 |
| Current Ratio | 4.96 |
| Piotroski F-Score | 7 |
| Altman Z-Score | 2.54 |
Price Performance
| 1 month | +18.62% |
| 3 months | +16.78% |
| Year-to-date | +27.13% |
| 1 year | +31.78% |
| 3 years | +24.90% |
| 5 years | -24.44% |
| 10 years | +127.42% |
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Explore sector: Technology · Software - Application
More sections of ALRM: Financials · Valuation · Statistics · Estimates · Technical · Ownership · News · Events
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