Alarm.com Holdings, Inc. (ALRM) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+146.4%

$162.69

vs $66.03 price

Levered DCF

$117.61

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

4.53

Safe zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	19.18×	24.32×	39.64×	43.79×	80.77×	65.06×	38.71×	115.27×
P/B	3×	4.15×	4.68×	4.13×	6.9×	10.83×	5.85×	8.9×
P/S	2.51×	3.21×	3.65×	2.93×	5.65×	8.19×	4.14×	5.88×
EV / EBITDA	11.78×	14.54×	20.97×	23.21×	38.83×	41.39×	22.42×	64.23×
Gross margin	66.1%	65.3%	63.1%	59.3%	59.2%	63.2%	63.5%	65.3%
Operating margin	13.2%	11.5%	7.6%	6.1%	8.2%	9.1%	10.0%	2.9%
Net margin	13.1%	13.2%	9.2%	6.7%	7.0%	12.6%	10.7%	5.1%
Current ratio	1.92×	7.85×	5.46×	5.4×	7.09×	4.4×	3.21×	3.03×
Debt / equity	1.34×	1.45×	0.76×	0.88×	0.76×	0.34×	0.3×	0.24×
Interest coverage	7.73×	9.5×	19.49×	16.23×	3.86×	21.69×	16.95×	4.18×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	15.6%	17.1%	11.8%	9.4%	8.5%	16.6%	15.1%	7.8%
Return on invested capital	5.2%	5.0%	4.3%	4.3%	5.5%	8.3%	9.3%	3.3%
Return on assets	6.1%	6.1%	5.6%	4.2%	4.2%	10.6%	9.6%	4.9%
Free cash flow yield	5.4%	6.5%	3.8%	1.1%	2.1%	1.6%	1.3%	2.0%
Earnings yield	5.2%	4.1%	2.5%	2.3%	1.2%	1.5%	2.6%	0.9%
Enterprise value	$2.7B	$2.9B	$3B	$2.4B	$4B	$5B	$2.1B	$2.4B
Net debt / EBITDA	0.74×	-0.84×	-1.18×	-0.9×	-2.36×	-0.8×	-0.13×	-2.12×
Cash conversion cycle (days)	128	73	118	120	64	59	58	50