Alarm.com Holdings, Inc. (ALRM) Financial Ratios
14 years of historical data (2012–2025) · Technology · Software - Application
EV/EBITDA
↓
13.00
↓-53% vs avg
5yr avg: 27.72
30Y Low11.6·High71.7
P/FCF
↓
16.02
↓-63% vs avg
5yr avg: 43.05
30Y Low18.0·High194.6
P/B Ratio
↓
2.93
↓-39% vs avg
5yr avg: 4.84
30Y Low2.4·High11.0
ROE
↑
16.0%
↓+26% vs avg
5yr avg: 12.6%
30Y Low6%·High19%
Debt/EBITDA
↑
6.23
+11% vs avg
5yr avg: 5.63
30Y Low0.3·High7.0
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
ALRM Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Alarm.com Holdings, Inc. trades at 18.0x earnings, 59% below its 5-year average of 43.9x, sitting at the 0th percentile of its historical range. Compared to the Technology sector median P/E of 29.0x, the stock trades at a discount of 38%. On a free-cash-flow basis, the stock trades at 16.0x P/FCF, 63% below the 5-year average of 43.1x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $2.2B | $3.0B | $3.5B | $3.5B | $2.7B | $4.4B | $5.3B | $2.2B | $2.6B | $1.9B | $1.3B |
| Enterprise Value | $2.4B | $3.2B | $3.4B | $3.4B | $2.6B | $4.2B | $5.2B | $2.1B | $2.5B | $1.8B | $1.2B |
| P/E Ratio → | 18.04 | 20.74 | 26.55 | 42.24 | 46.24 | 83.97 | 67.61 | 40.54 | 120.63 | 63.98 | 132.52 |
| P/S Ratio | 2.17 | 2.97 | 3.75 | 4.00 | 3.23 | 5.88 | 8.53 | 4.30 | 6.13 | 5.47 | 5.10 |
| P/B Ratio | 2.93 | 3.37 | 4.57 | 4.87 | 4.36 | 7.03 | 11.02 | 5.89 | 9.29 | 7.97 | 6.97 |
| P/FCF | 16.02 | 21.94 | 17.96 | 28.98 | 96.18 | 50.19 | 64.62 | 77.74 | 53.01 | 39.71 | 194.65 |
| P/OCF | 14.32 | 19.61 | 17.08 | 25.96 | 47.77 | 42.69 | 51.65 | 45.85 | 42.46 | 32.45 | 76.14 |
P/E links to full P/E history page with 30-year chart
ALRM EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Alarm.com Holdings, Inc.'s enterprise value stands at 13.0x EBITDA, 53% below its 5-year average of 27.7x. The Technology sector median is 16.7x, placing the stock at a 22% discount on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.14 | 3.58 | 3.81 | 3.12 | 5.56 | 8.38 | 4.28 | 5.94 | 5.40 | 4.59 |
| EV / EBITDA | 13.00 | 17.45 | 22.18 | 30.27 | 28.00 | 40.71 | 61.11 | 26.58 | 71.75 | 35.15 | 56.18 |
| EV / EBIT | 17.42 | 17.03 | 21.94 | 33.17 | 43.96 | 67.09 | 62.55 | 34.73 | 170.93 | 53.14 | 82.25 |
| EV / FCF | — | 23.18 | 17.13 | 27.58 | 92.91 | 47.43 | 63.44 | 77.32 | 51.39 | 39.17 | 175.08 |
ALRM Profitability
Margins and return-on-capital ratios measuring operating efficiency
Alarm.com Holdings, Inc. earns an operating margin of 13.4%. Operating margins have expanded from 7.6% to 13.4% over the past 3 years, signaling improving operational efficiency. ROE of 16.0% indicates solid capital efficiency. ROIC of 12.2% represents solid returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 63.1% | 63.1% | 65.3% | 63.1% | 59.3% | 59.2% | 63.2% | 63.5% | 65.3% | 65.7% | 61.9% |
| Operating Margin | 13.4% | 13.4% | 11.5% | 7.6% | 6.1% | 8.2% | 9.1% | 10.0% | 2.9% | 9.8% | 5.4% |
| Net Profit Margin | 13.1% | 13.1% | 13.2% | 9.2% | 6.7% | 7.0% | 12.6% | 10.7% | 5.1% | 8.6% | 3.9% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 16.0% | 16.0% | 16.6% | 12.0% | 9.0% | 9.5% | 18.4% | 16.6% | 8.4% | 13.8% | 5.6% |
| ROA | 6.3% | 6.3% | 7.1% | 5.9% | 4.4% | 5.3% | 12.1% | 10.7% | 5.3% | 9.2% | 4.2% |
| ROIC | 12.2% | 12.2% | 14.0% | 9.2% | 8.4% | 12.1% | 11.4% | 13.7% | 4.5% | 18.9% | 19.9% |
| ROCE | 8.1% | 8.1% | 7.0% | 5.5% | 4.5% | 7.1% | 10.0% | 11.9% | 3.5% | 12.2% | 6.7% |
ALRM Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Alarm.com Holdings, Inc. carries a Debt/EBITDA ratio of 6.2x, which is highly leveraged (112% above the sector average of 2.9x). Net debt stands at $171M ($1.1B total debt minus $963M cash). Interest coverage of 10.8x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.27 | 1.27 | 1.37 | 0.73 | 0.85 | 0.75 | 0.33 | 0.29 | 0.24 | 0.30 | 0.04 |
| Debt / EBITDA | 6.23 | 6.23 | 6.97 | 4.74 | 5.65 | 4.58 | 1.86 | 1.33 | 1.92 | 1.36 | 0.31 |
| Net Debt / Equity | — | 0.19 | -0.21 | -0.24 | -0.15 | -0.39 | -0.20 | -0.03 | -0.28 | -0.11 | -0.70 |
| Net Debt / EBITDA | 0.94 | 0.94 | -1.08 | -1.54 | -0.98 | -2.37 | -1.13 | -0.15 | -2.27 | -0.49 | -6.28 |
| Debt / FCF | — | 1.24 | -0.84 | -1.40 | -3.26 | -2.76 | -1.17 | -0.42 | -1.63 | -0.54 | -19.57 |
| Interest Coverage | 10.79 | 10.79 | 13.41 | 29.53 | 19.00 | 3.89 | 31.88 | 20.80 | 5.01 | 15.66 | 76.69 |
ALRM Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.92x means Alarm.com Holdings, Inc. can comfortably meet its short-term obligations, though there is limited excess liquidity. The current ratio has declined from 5.46x to 1.92x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.92 | 1.92 | 7.85 | 5.46 | 5.40 | 7.09 | 4.40 | 3.21 | 3.03 | 3.68 | 4.79 |
| Quick Ratio | 1.78 | 1.78 | 7.38 | 4.91 | 4.70 | 6.51 | 3.91 | 2.76 | 2.72 | 3.37 | 4.53 |
| Cash Ratio | 1.45 | 1.45 | 6.47 | 3.98 | 3.77 | 5.49 | 2.81 | 1.58 | 1.94 | 2.16 | 3.54 |
| Asset Turnover | — | 0.47 | 0.46 | 0.61 | 0.63 | 0.61 | 0.84 | 0.90 | 0.95 | 0.91 | 1.00 |
| Inventory Turnover | 3.95 | 3.95 | 3.73 | 3.38 | 2.96 | 4.06 | 5.14 | 5.37 | 6.34 | 8.20 | 9.43 |
| Days Sales Outstanding | — | 51.20 | 48.97 | 54.08 | 53.84 | 51.44 | 49.21 | 55.49 | 42.98 | 43.76 | 41.67 |
ALRM Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Alarm.com Holdings, Inc. returns 1.9% to shareholders annually primarily through share buybacks. The earnings yield of 5.5% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.5% | 4.8% | 3.8% | 2.4% | 2.2% | 1.2% | 1.5% | 2.5% | 0.8% | 1.6% | 0.8% |
| FCF Yield | 6.2% | 4.6% | 5.6% | 3.5% | 1.0% | 2.0% | 1.5% | 1.3% | 1.9% | 2.5% | 0.5% |
| Buyback Yield | 1.9% | 1.4% | 2.1% | 0.8% | 2.9% | 0.0% | 0.1% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 1.9% | 1.4% | 2.1% | 0.8% | 2.9% | 0.0% | 0.1% | 0.0% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $59M | $58M | $55M | $55M | $52M | $51M | $50M | $50M | $49M | $48M |
Peer Comparison
Compare ALRM with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 ALRMYou | $2B | 18.0 | 13.0 | 16.0 | 63.1% | 13.4% | 16.0% | 12.2% | 6.2 |
 ARLO | $1B | 93.3 | 127.8 | 21.2 | 44.0% | 1.1% | 13.1% | 35.9% | 0.7 |
 REZI | $5B | -8.5 | 8.8 | — | 27.8% | 8.6% | -16.9% | 9.5% | 3.8 |
 SSNC | $16B | 20.8 | 9.3 | 9.5 | 48.2% | 22.9% | 11.8% | 8.9% | 3.6 |
 SPOK | $218M | 14.0 | 8.6 | 8.6 | 78.8% | 14.1% | 10.5% | 11.3% | 0.3 |
 NXRT | $684M | -21.4 | 18.0 | 8.2 | 84.3% | 11.1% | -8.9% | 1.1% | 12.6 |
 ADT | $5B | 9.8 | 4.2 | 3.8 | 49.3% | 26.0% | 15.7% | 8.8% | 2.6 |
 NSSC | $1B | 31.4 | 25.9 | 25.9 | 55.6% | 25.5% | 25.7% | 38.2% | 0.1 |
 DGLY | $2M | -0.2 | — | — | 27.9% | -77.4% | -1629.9% | -114.7% | — |
 CRNC | $486M | -25.0 | 26.7 | 10.4 | 72.1% | 5.2% | -12.8% | 3.2% | 9.7 |
 QCOM | $238B | 45.1 | 17.7 | 18.6 | 55.4% | 27.9% | 23.3% | 29.1% | 1.2 |
| Technology Median | — | 29.0 | 16.7 | 19.2 | 48.8% | 0.2% | 1.6% | 2.7% | 2.9 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 14 years · Updated daily
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ALRM — Frequently Asked Questions
Quick answers to the most common questions about buying ALRM stock.
What is Alarm.com Holdings, Inc.'s P/E ratio?
Alarm.com Holdings, Inc.'s current P/E ratio is 18.0x. The historical average is 64.5x.
What is Alarm.com Holdings, Inc.'s EV/EBITDA?
Alarm.com Holdings, Inc.'s current EV/EBITDA is 13.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 36.5x.
What is Alarm.com Holdings, Inc.'s ROE?
Alarm.com Holdings, Inc.'s return on equity (ROE) is 16.0%. The historical average is 12.7%.
Is ALRM stock overvalued?
Based on historical data, Alarm.com Holdings, Inc. is trading at a P/E of 18.0x. Compare with industry peers and growth rates for a complete picture.
What are Alarm.com Holdings, Inc.'s profit margins?
Alarm.com Holdings, Inc. has 63.1% gross margin and 13.4% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does Alarm.com Holdings, Inc. have?
Alarm.com Holdings, Inc.'s Debt/EBITDA ratio is 6.2x, indicating high leverage. A ratio above 4x may signal elevated financial risk.