Alarm.com Holdings Inc (ALRM) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Alarm.com Holdings Inc stock (ALRM) is currently trading at $43.53. Alarm.com Holdings Inc PE ratio is 18.04. Alarm.com Holdings Inc PS ratio (Price-to-Sales) is 2.19. Analyst consensus price target for ALRM is $58.00. WallStSmart rates ALRM as Hold.
- ALRM PE ratio analysis and historical PE chart
- ALRM PS ratio (Price-to-Sales) history and trend
- ALRM intrinsic value — DCF, Graham Number, EPV models
- ALRM stock price prediction 2025 2026 2027 2028 2029 2030
- ALRM fair value vs current price
- ALRM insider transactions and insider buying
- Is ALRM undervalued or overvalued?
- Alarm.com Holdings Inc financial analysis — revenue, earnings, cash flow
- ALRM Piotroski F-Score and Altman Z-Score
- ALRM analyst price target and Smart Rating
Alarm.com Holdings Inc
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ALRM Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Alarm.com Holdings Inc (ALRM)
ALRM trades at a significant discount to its Graham intrinsic value of $87.18, offering a 47% margin of safety — a level value investors typically seek before buying.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Alarm.com Holdings Inc (ALRM) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in institutional own.. Fundamentals are solid but monitor weak areas for improvement.
Alarm.com Holdings Inc (ALRM) Key Strengths (3)
99.05% of shares held by major funds and institutions
Mid-cap company balancing growth potential with stability
Solid profitability: $16 profit per $100 equity
Supporting Valuation Data
Alarm.com Holdings Inc (ALRM) Areas to Watch (7)
Thin operating margins with cost pressures present
Modest revenue growth at 8.00%
Growth is fairly priced, not cheap, not expensive
Revenue is fairly priced at 2.19x sales
Fairly priced relative to book value
Solid earnings growth at 17.90%
Decent profitability, keeps $13 per $100 revenue
Supporting Valuation Data
Alarm.com Holdings Inc (ALRM) Detailed Analysis Report
Overall Assessment
This company scores 61/100 in our Smart Analysis, earning a C+ grade. Out of 10 metrics analyzed, 3 register as strengths (avg 8.0/10) while 7 fall into concern territory (avg 5.4/10). All four categories (Growth, Profitability, Valuation, and Quality) show healthy scores, indicating broadly sound fundamentals.
The Bull Case
The strongest argument centers on Institutional Own., Market Cap, Return on Equity. Profitability is solid with Return on Equity at 15.80%.
The Bear Case
The primary concerns are Operating Margin, Revenue Growth, PEG Ratio. Some valuation metrics including PEG Ratio (1.54), Price/Sales (2.19), Price/Book (2.60) suggest expensive pricing. Growth concerns include Revenue Growth at 8.00%, EPS Growth at 17.90%, which may limit upside. Profitability pressure is visible in Operating Margin at 13.60%, Profit Margin at 13.10%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Operating Margin improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 15.80% currently healthy but needing to be sustained. Third, growth sustainability, with Revenue Growth at 8.00% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Institutional Own., Market Cap) and negatives (Operating Margin, Revenue Growth). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
ALRM Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
ALRM's Price-to-Sales ratio of 2.19x trades at a deep discount to its historical average of 5.06x (0th percentile). The current valuation is 76% below its historical high of 8.97x set in Oct 2017, and 0% above its historical low of 2.19x in Mar 2026. Over the past 12 months, the PS ratio has compressed from ~3.0x as trailing revenue scaled faster than the stock price.
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Data-driven financial summary for Alarm.com Holdings Inc (ALRM) · TECHNOLOGY › SOFTWARE - APPLICATION
The Big Picture
Alarm.com Holdings Inc operates as a stable business with moderate growth and solid fundamentals. Revenue reached 1.0B with 8% growth year-over-year. Profit margins of 13.1% are healthy, with room for further expansion as the business scales.
Key Findings
ROE of 1580.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Generating 35M in free cash flow and 36M in operating cash flow. Earnings are translating into actual cash generation.
What to Watch Next
Margin expansion: can Alarm.com Holdings Inc push profit margins above 15% as the business scales?
Sector dynamics: monitor SOFTWARE - APPLICATION industry trends, competitive moves, and regulatory changes that could impact Alarm.com Holdings Inc.
Bottom Line
Alarm.com Holdings Inc offers stability with moderate growth and solid fundamentals. The valuation may present an opportunity for patient investors, though limited growth means returns will likely come from dividends and modest capital appreciation rather than explosive gains.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Alarm.com Holdings Inc(ALRM)
NASDAQ
TECHNOLOGY
SOFTWARE - APPLICATION
USA
Alarm.com Holdings, Inc. offers cloud-based solutions for smart residential and commercial properties in the United States and internationally. The company is headquartered in Tysons, Virginia.