Alarm.com Holdings, Inc. (ALRM) P/E Ratio History
Deep ValueTrading at 21.7x · 15th percentile of 5-year range · Significant discount to historical valuation · Data 2015–2026
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P/E Ratio Analysis
As of September 25, 2026, Alarm.com Holdings, Inc. (ALRM) trades at a price-to-earnings ratio of 21.7x, with a stock price of $53.44 and trailing twelve-month earnings per share of $2.11.
The current P/E is 49% below its 5-year average of 42.2x. Over the past five years, ALRM's P/E has ranged from a low of 17.9x to a high of 84.0x, placing the current valuation at the 15th percentile of its historical range.
Compared to the Technology sector median P/E of 30.2x, ALRM trades at a 28% discount to its sector peers. The sector includes 367 companies with P/E ratios ranging from 0.0x to 199.5x.
The PEG ratio of 2.18 (P/E divided by 7% EPS growth) suggests the stock may be expensive relative to its earnings growth. Peter Lynch popularized the rule that a PEG below 1.0 indicates an attractive entry point.
Relative to the broader market, ALRM trades roughly in line with the S&P 500 median P/E of 24.8x. Investors should consider the company's growth prospects, competitive position, and earnings quality when evaluating whether the current valuation is justified.
For a comprehensive intrinsic value estimate using discounted cash flow analysis, see our ALRM DCF Valuation Calculator →
Note: P/E ratio is just one valuation metric. It does not account for balance sheet strength, cash flow quality, or growth sustainability. Always conduct comprehensive due diligence before making investment decisions.
ALRM Cross-Benchmark Valuation
How does the current P/E compare to sector peers and the broader market?
ALRM P/E vs Peers
IT operations, security and observability peers sorted by market cap
| Company | Market Cap | P/E Ratio | PEG Ratio | EPS Growth (1Y) |
|---|---|---|---|---|
| $1B | 93.0 | - | +145%Best | |
| $18B | 24.9 | 4.13 | +5% | |
| $216M | 13.8 | - | +3% | |
| $5B | 9.5Lowest | - | +29% | |
| $1B | 30.0 | 0.77Best | -11% | |
| $204B | 38.8 | 18.64 | -44% |
Lower P/E can signal a discount or weaker growth expectations; PEG adds growth context.
ALRM Historical P/E Data (2015–2026)
Quarterly P/E ratios calculated from closing price and TTM EPS
| Quarter | Period End | Price | TTM EPS | P/E Ratio | vs Avg |
|---|---|---|---|---|---|
| FY2026 Q2 | - | $46.72 | $2.26 | 20.7x | -69% |
| FY2026 Q1 | - | $43.19 | $2.41 | 17.9x | -73% |
| FY2025 Q4 | Dec 31 2025 | $51.02 | $2.46 | 20.7x | -69% |
| FY2025 Q3 | - | $53.08 | $2.36 | 22.5x | -66% |
| FY2025 Q2 | Jun 30 2025 | $56.57 | $2.38 | 23.8x | -64% |
| FY2025 Q1 | Mar 31 2025 | $55.65 | $2.37 | 23.5x | -65% |
| FY2024 Q4 | - | $60.80 | $2.29 | 26.6x | -60% |
| FY2024 Q3 | Sep 30 2024 | $54.67 | $2.31 | 23.7x | -64% |
| FY2024 Q2 | Jun 30 2024 | $63.54 | $2.01 | 31.6x | -52% |
| FY2024 Q1 | Mar 31 2024 | $72.47 | $1.69 | 42.9x | -35% |
| FY2023 Q4 | Dec 31 2023 | $64.62 | $1.53 | 42.2x | -36% |
| FY2023 Q3 | Sep 30 2023 | $61.14 | $1.29 | 47.4x | -29% |
| FY2023 Q2 | Jun 30 2023 | $51.68 | $1.27 | 40.7x | -39% |
| FY2023 Q1 | Mar 31 2023 | $50.28 | $1.18 | 42.6x | -36% |
| FY2022 Q4 | Dec 31 2022 | $49.48 | $1.08 | 45.8x | -31% |
| FY2022 Q3 | Sep 30 2022 | $64.86 | $0.92 | 70.5x | +6% |
| FY2022 Q2 | - | $61.86 | $0.83 | 74.5x | +12% |
| FY2022 Q1 | - | $66.46 | $0.90 | 73.8x | +11% |
| FY2021 Q4 | Dec 31 2021 | $84.81 | $1.01 | 84.0x | +26% |
| FY2021 Q3 | - | $78.19 | $1.14 | 68.6x | +3% |
| FY2021 Q2 | Jun 30 2021 | $84.70 | $1.59 | 53.3x | -20% |
| FY2021 Q1 | Mar 31 2021 | $86.38 | $1.65 | 52.4x | -21% |
| FY2020 Q4 | - | $103.45 | $1.54 | 67.2x | +1% |
| FY2020 Q3 | Sep 30 2020 | $55.25 | $1.49 | 37.1x | -44% |
| FY2020 Q2 | - | $64.81 | $1.13 | 57.4x | -14% |
| FY2020 Q1 | - | $38.91 | $1.06 | 36.7x | -45% |
| FY2019 Q4 | - | $42.97 | $1.06 | 40.5x | -39% |
| FY2019 Q3 | Sep 30 2019 | $46.64 | $0.96 | 48.6x | -27% |
| FY2019 Q2 | Jun 30 2019 | $53.50 | $0.45 | 118.9x | +79% |
| FY2019 Q1 | Mar 31 2019 | $64.90 | $0.40 | 162.3x | +144% |
| FY2018 Q4 | Dec 31 2018 | $51.87 | $0.43 | 120.6x | +82% |
| FY2018 Q3 | Sep 30 2018 | $57.40 | $0.28 | 205.0x | +209% |
| FY2018 Q2 | Jun 30 2018 | $40.38 | $0.75 | 53.8x | -19% |
| FY2018 Q1 | Mar 31 2018 | $37.74 | $0.73 | 51.7x | -22% |
| FY2017 Q4 | Dec 31 2017 | $37.75 | $0.60 | 62.9x | -5% |
| FY2017 Q3 | Sep 30 2017 | $45.18 | $0.65 | 69.5x | +5% |
| FY2017 Q2 | Jun 30 2017 | $37.63 | $0.39 | 96.5x | +45% |
| FY2017 Q1 | Mar 31 2017 | $30.74 | $0.23 | 133.7x | +101% |
| FY2016 Q4 | Dec 31 2016 | $27.83 | $0.21 | 132.5x | +100% |
| FY2016 Q3 | Sep 30 2016 | $28.86 | $0.22 | 131.2x | +98% |
| FY2016 Q2 | - | $25.63 | $0.23 | 111.4x | +68% |
| FY2016 Q1 | - | $23.70 | $0.26 | 90.2x | +36% |
| FY2015 Q4 | - | $16.68 | $0.21 | 80.9x | +22% |
| FY2015 Q3 | Sep 30 2015 | $11.66 | $0.25 | 47.4x | -29% |
| FY2015 Q2 | - | $15.38 | $0.19 | 81.7x | +23% |
Average P/E for displayed period: 66.4x
ALRM Chart Terminal
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Live Breakouts Feed
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Intrinsic Valuation
DCF models, multiple analysis, and analyst estimates.
Historical Returns
11+ years return with dividends reinvested.
Peer Comparison
Compare growth, multiples, and margins vs sector.
ALRM — Frequently Asked Questions
Quick answers to the most common questions about buying ALRM stock.
What is ALRM's P/E ratio?
Alarm.com Holdings, Inc. (ALRM) trailing twelve-month P/E ratio is 21.7x, based on TTM diluted EPS of $2.11. The 5-year average P/E is 42.2x and the historical range spans 17.9x to 84.0x.
Is ALRM stock overvalued or undervalued?
ALRM trades at 21.7x P/E, below its 5-year average of 42.2x. At the 15th percentile of its historical range (17.9x–84.0x), the stock is priced at a discount to its own history.
Is ALRM stock expensive?
No, ALRM is not expensive on a historical basis. The current P/E of 21.7x is below the 5-year average of 42.2x and sits at the 15th percentile of its valuation range.
What is ALRM's historical P/E range?
Over the past 5 years, ALRM's P/E ratio has ranged from 17.9x to 84.0x, with a median of 42.2x and an average of 42.2x. The current P/E of 21.7x places the stock at the 15th percentile of this range. Full historical data spans 2015–2026.
How does ALRM's P/E compare to the S&P 500?
ALRM trades at 21.7x P/E versus the S&P 500 median of 24.8x. The 13% discount to the market suggests lower growth expectations or perceived higher risk.
How does ALRM's valuation compare to Technology peers?
Alarm.com Holdings, Inc. P/E of 21.7x compares to the Technology sector median of 30.2x. The discount suggests lower growth expectations, weaker margins, or higher perceived risk relative to peers. See the peer comparison table on this page for ticker-by-ticker P/E and PEG.
What is ALRM's PEG ratio?
ALRM PEG ratio is 2.18, based on a P/E of 21.7x and EPS growth of 7.4%. A PEG above 2.0 indicates a premium valuation relative to earnings growth — typically considered expensive.
What is ALRM's earnings yield?
ALRM earnings yield is 4.60%, the inverse of its 21.7x P/E ratio. Earnings yield represents the percentage of each dollar invested that the company earns. It can be compared directly to bond yields to assess relative attractiveness of stocks versus fixed income.