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Alarm.com HoldingsALRM +3.62%89 Debt-to-EBITDA is 3.12 as of Mar. 2026, which is 15% above its 10-year median of 2.72. GuruFocus rates ALRM with a GF Score™ of 89/100 and a GF Value™ of $65.14 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,716 Software companies, Alarm.com Holdings ranks worse than 70.45% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Alarm.com Holdings's Debt-to-EBITDA or its related term are showing as below:
ALRM'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.31 Med: 2.72 Max: 5.41
Current: 2.52
During the past 13 years, the highest Debt-to-EBITDA Ratio of Alarm.com Holdings was 5.41. The lowest was 0.31. And the median was 2.72.
ALRM's Debt-to-EBITDA is ranked worse than 70.45% of 1716
companies
in the Software industry
Industry Median: 1.09
vs ALRM: 2.52
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Alarm.com Holdings Debt-to-EBITDA Related Terms
Alarm.com Holdings Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Alarm.com Holdings's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
ALRM vs BRZE, QNT, SPSC: Debt-to-EBITDA Comparison
For the Software - Application subindustry, Alarm.com Holdings's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Alarm.com Holdings Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, Alarm.com Holdings's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Alarm.com Holdings's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Alarm.com Holdings (ALRM) has a Debt-to-EBITDA of 3.12 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Alarm.com Holdings. This is 15% above median its historical median of 2.72. Over the past decade, Alarm.com Holdings' Debt-to-EBITDA has ranged from 0.31 to 5.41. According to the industry distribution chart, Alarm.com Holdings ranks #1209 out of 1716 companies in the Software industry, placing it in the top 70.5%.
Is Alarm.com Holdings' Debt-to-EBITDA too high?
Alarm.com Holdings' current Debt-to-EBITDA of 3.12 is 15% above median its 10-year median of 2.72. Over the past 10 years, this metric has ranged from a low of 0.31 to a high of 5.41. The Software industry median Debt-to-EBITDA is 1.09. Alarm.com Holdings' value of 3.12 is 186.2% above this industry median. Based on the distribution chart, Alarm.com Holdings ranks #1209 out of 1716 companies in the Software industry, which is below the industry midpoint. Overall, Alarm.com Holdings has a GF Score™ of 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Alarm.com Holdings' Debt-to-EBITDA compare to BRZE and QNT?
According to the Software industry distribution chart, Alarm.com Holdings ranks #1209 out of 1716 companies for Debt-to-EBITDA. This places Alarm.com Holdings in the lower half of its industry. The industry median Debt-to-EBITDA is 1.09. Alarm.com Holdings' value of 3.12 is 186.2% above this benchmark. Historically, Alarm.com Holdings' own Debt-to-EBITDA has ranged from 0.31 to 5.41 over the past decade. While the company's 10-year median is 2.72 vs. the industry median of 1.09, Alarm.com Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Software company?
The median Debt-to-EBITDA among Software companies is 1.09, based on 1,716 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alarm.com Holdings's current Debt-to-EBITDA of 3.12 is 186.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Alarm.com Holdings. For the Software industry, the median Debt-to-EBITDA is 1.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alarm.com Holdings's current Debt-to-EBITDA is 3.12, which is 15% above median its own 10-year median of 2.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alarm.com Holdings stock overvalued right now?
Based on GuruFocus' analysis, Alarm.com Holdings (ALRM) is currently considered Modestly Undervalued. The stock's GF Value™ is $65.14, compared to a current price of $54.13 — trading 16.9% below its estimated fair value. The current Debt-to-EBITDA is 3.12, which is 15% above median its 10-year median of 2.72 and 186.2% above the Software industry median of 1.09. Alarm.com Holdings' overall GF Score™ is 89/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Alarm.com Holdings (ALRM), the current Debt-to-EBITDA is 3.12 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Alarm.com Holdings (ALRM) Overvalued in 2026?
Based on GuruFocus' analysis, Alarm.com Holdings stock appears to be undervalued.
The current stock price of $54.13 is trading 16.9% below its estimated GF Value™ of $65.14.
GuruFocus considers Alarm.com Holdings to be Modestly Undervalued.
Key valuation signals for ALRM:
Debt-to-EBITDA: 3.12 (15% above median its 10-year median of 2.72)
GF Value™: $65.14 vs. price of $54.13 (16.9% below fair value)
Industry Position: 186.2% above the Software median (#1209 of 1716)
No single metric tells the full story. See the ALRM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alarm.com Holdings Inc has a cloud-based platform that offers an expansive suite of IoT solutions addressing world-wide opportunities in the residential, multi-family, small business and enterprise commercial markets. It has two reportable segments: Alarm.com & Other. The Alarm.com segment represents the cloud-based Software platforms for intelligently connected property & related solutions. The other segment is focused on researching, developing & offering residential & commercial automation solutions & energy management products & services in adjacent markets. The majority of revenue is from the Alarm.com segment. The platform allows home & business owners to secure their properties and automate & control an array of connected device.
89GF Score
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Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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