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Alarm.com HoldingsALRM +2.16%89 Earnings Yield (Joel Greenblatt) % is 7.89% as of Mar. 2026, which is 274% above its 10-year median of 2.11. GuruFocus rates ALRM with a GF Score™ of 89/100 and a GF Value™ of $65.31 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 2,907 Software companies, Alarm.com Holdings ranks better than 68.01% on this metric.
Alarm.com Holdings's Enterprise Value for the quarter that ended in Mar. 2026 was $2,246 Mil.
Alarm.com Holdings's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 was $177 Mil. Alarm.com Holdings's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2026 was 7.89%.
The historical rank and industry rank for Alarm.com Holdings's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
ALRM'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 0.35 Med: 2.11 Max: 7.18
Current: 6.18
During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Alarm.com Holdings was 7.18%. The lowest was 0.35%. And the median was 2.11%.
ALRM's Earnings Yield (Joel Greenblatt) % is ranked better than 68.01% of 2907
companies
in the Software industry
Industry Median: 2.06
vs ALRM: 6.18
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Alarm.com Holdings's Forward Rate of Return (Yacktman) % for the quarter that ended in Mar. 2026 was 21.61%. The Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.
Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.
Be Aware
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
Alarm.com Holdings Earnings Yield (Joel Greenblatt) % Related Terms
Alarm.com Holdings Earnings Yield (Joel Greenblatt) % Historical Data
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The historical data trend for Alarm.com Holdings's Earnings Yield (Joel Greenblatt) % 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.
For the Software - Application subindustry, Alarm.com Holdings's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % 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 Earnings Yield (Joel Greenblatt) % vs Software Industry
For the Software industry and Technology sector, Alarm.com Holdings's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Alarm.com Holdings's Earnings Yield (Joel Greenblatt) % falls into.
In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.
Alarm.com Holdingss Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2025 is calculated as
Alarm.com Holdings's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $177 Mil.
What does a Earnings Yield (Joel Greenblatt) % of 7.89% mean?
Alarm.com Holdings (ALRM) has a Earnings Yield (Joel Greenblatt) % of 7.89% as of Mar. 2026. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Alarm.com Holdings and its competitors. This is 274% above median its historical median of 2.11. Over the past decade, Alarm.com Holdings' Earnings Yield (Joel Greenblatt) % has ranged from 0.35 to 7.18. According to the industry distribution chart, Alarm.com Holdings ranks #930 out of 2907 companies in the Software industry, placing it in the top 32%.
Is Alarm.com Holdings' Earnings Yield (Joel Greenblatt) % too high?
Alarm.com Holdings' current Earnings Yield (Joel Greenblatt) % of 7.89% is 274% above median its 10-year median of 2.11. Over the past 10 years, this metric has ranged from a low of 0.35 to a high of 7.18. The Software industry median Earnings Yield (Joel Greenblatt) % is 2.06. Alarm.com Holdings' value of 7.89% is 283% above this industry median. Based on the distribution chart, Alarm.com Holdings ranks #930 out of 2907 companies in the Software industry, which is above 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' Earnings Yield (Joel Greenblatt) % compare to GRND and BRZE?
According to the Software industry distribution chart, Alarm.com Holdings ranks #930 out of 2907 companies for Earnings Yield (Joel Greenblatt) %. This puts Alarm.com Holdings in the upper half of its industry. The industry median Earnings Yield (Joel Greenblatt) % is 2.06. Alarm.com Holdings' value of 7.89% is 283% above this benchmark. Historically, Alarm.com Holdings' own Earnings Yield (Joel Greenblatt) % has ranged from 0.35 to 7.18 over the past decade. While the company's 10-year median is 2.11 vs. the industry median of 2.06, 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 Earnings Yield (Joel Greenblatt) % for a Software company?
The median Earnings Yield (Joel Greenblatt) % among Software companies is 2.06, based on 2,907 companies in the industry. Companies in the top quartile (top 25%) have a Earnings Yield (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, Earnings Yield (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alarm.com Holdings's current Earnings Yield (Joel Greenblatt) % of 7.89% is 283% 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 Earnings Yield (Joel Greenblatt) % mean?
A high Earnings Yield (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Alarm.com Holdings and its competitors. For the Software industry, the median Earnings Yield (Joel Greenblatt) % is 2.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alarm.com Holdings's current Earnings Yield (Joel Greenblatt) % is 7.89%, which is 274% above median its own 10-year median of 2.11. 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 $65.31, compared to a current price of $55.69 — trading 14.7% below its estimated fair value. The current Earnings Yield (Joel Greenblatt) % is 7.89%, which is 274% above median its 10-year median of 2.11 and 283% above the Software industry median of 2.06. Alarm.com Holdings' overall GF Score™ is 89/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Earnings Yield (Joel Greenblatt) % calculated?
Earnings Yield (Joel Greenblatt) % is calculated from a company's financial statements. For Alarm.com Holdings (ALRM), the current Earnings Yield (Joel Greenblatt) % is 7.89% 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 $55.69 is trading 14.7% below its estimated GF Value™ of $65.31.
GuruFocus considers Alarm.com Holdings to be Modestly Undervalued.
Key valuation signals for ALRM:
Earnings Yield (Joel Greenblatt) %: 7.89% (274% above median its 10-year median of 2.11)
GF Value™: $65.31 vs. price of $55.69 (14.7% below fair value)
Industry Position: 283% above the Software median (#930 of 2907)
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
Get the complete analysis for ALRM
Earnings Yield (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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