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Alarm.com HoldingsALRM +1.43%91 3-Year EBITDA Growth Rate is 27.90% as of Mar. 2026, which is 38% above its 10-year median of 20.20. GuruFocus rates ALRM with a GF Score™ of 91/100 and a GF Value™ of $65.39 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 2,075 Software companies, Alarm.com Holdings ranks better than 71.18% on this metric.
During the past 12 months, Alarm.com Holdings's average EBITDA Per Share Growth Rate was 10.80% per year.
During the past 3 years, the average EBITDA Per Share Growth Rate was 27.90% per year.
During the past 5 years, the average EBITDA Per Share Growth Rate was 13.60% per year.
During the past 10 years, the average EBITDA Per Share Growth Rate was 19.30% per year.
Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average EBITDA per share growth rate.
During the past 13 years, the highest 3-Year average EBITDA Per Share Growth Rate of Alarm.com Holdings was 59.10% per year. The lowest was -8.80% per year. And the median was 20.20% per year.
EBITDA per Share is the amount of Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) per outstanding share of the company's stock.
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is what the company earns before it expenses interest, taxes, depreciation and amortization.
Alarm.com Holdings 3-Year EBITDA Growth Rate Related Terms
ALRM vs GRND, BRZE, SOUN: 3-Year EBITDA Growth Rate Comparison
For the Software - Application subindustry, Alarm.com Holdings's 3-Year EBITDA Growth Rate, along with its competitors' market caps and 3-Year EBITDA Growth Rate 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 3-Year EBITDA Growth Rate vs Software Industry
For the Software industry and Technology sector, Alarm.com Holdings's 3-Year EBITDA Growth Rate distribution charts can be found below:
* The bar in red indicates where Alarm.com Holdings's 3-Year EBITDA Growth Rate falls into.
This is the 3-year average growth rate of EBITDA per Share. The growth rate is calculated using exponential compounding based on the latest four year annual data.
Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average EBITDA per share growth rate.
What does a 3-Year EBITDA Growth Rate of 27.90% mean?
Alarm.com Holdings (ALRM) has a 3-Year EBITDA Growth Rate of 27.90% as of Mar. 2026. 3-Year EBITDA Growth Rate is the 3-year average growth rate of EBITDA per share. View historical data for Alarm.com Holdings and its competitors. This is 38% above median its historical median of 20.20. According to the industry distribution chart, Alarm.com Holdings ranks #598 out of 2075 companies in the Software industry, placing it in the top 28.8%.
Is Alarm.com Holdings' 3-Year EBITDA Growth Rate too high?
Alarm.com Holdings' current 3-Year EBITDA Growth Rate of 27.90% is 38% above median its 10-year median of 20.20. The Software industry median 3-Year EBITDA Growth Rate is 12.30. Alarm.com Holdings' value of 27.90% is 126.8% above this industry median. Based on the distribution chart, Alarm.com Holdings ranks #598 out of 2075 companies in the Software industry, which is above the industry midpoint. Overall, Alarm.com Holdings has a GF Score™ of 91/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Alarm.com Holdings' 3-Year EBITDA Growth Rate compare to GRND and BRZE?
According to the Software industry distribution chart, Alarm.com Holdings ranks #598 out of 2075 companies for 3-Year EBITDA Growth Rate. This puts Alarm.com Holdings in the upper half of its industry. The industry median 3-Year EBITDA Growth Rate is 12.30. Alarm.com Holdings' value of 27.90% is 126.8% above this benchmark. While the company's 10-year median is 20.20 vs. the industry median of 12.30, 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 3-Year EBITDA Growth Rate for a Software company?
The median 3-Year EBITDA Growth Rate among Software companies is 12.30, based on 2,075 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year EBITDA Growth Rate significantly above this median, while those in the bottom quartile fall well below. However, 3-Year EBITDA Growth Rate should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alarm.com Holdings's current 3-Year EBITDA Growth Rate of 27.90% is 126.8% 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 3-Year EBITDA Growth Rate mean?
A high 3-Year EBITDA Growth Rate can signal that a stock is expensive relative to its fundamentals. 3-Year EBITDA Growth Rate is the 3-year average growth rate of EBITDA per share. View historical data for Alarm.com Holdings and its competitors. For the Software industry, the median 3-Year EBITDA Growth Rate is 12.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alarm.com Holdings's current 3-Year EBITDA Growth Rate is 27.90%, which is 38% above median its own 10-year median of 20.20. 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 $65.39, compared to a current price of $56.66 — trading 13.4% below its estimated fair value. The current 3-Year EBITDA Growth Rate is 27.90%, which is 38% above median its 10-year median of 20.20 and 126.8% above the Software industry median of 12.30. Alarm.com Holdings' overall GF Score™ is 91/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year EBITDA Growth Rate calculated?
3-Year EBITDA Growth Rate is calculated from a company's financial statements. For Alarm.com Holdings (ALRM), the current 3-Year EBITDA Growth Rate is 27.90% 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 $56.66 is trading 13.4% below its estimated GF Value™ of $65.39.
GuruFocus considers Alarm.com Holdings to be Modestly Undervalued.
Key valuation signals for ALRM:
3-Year EBITDA Growth Rate: 27.90% (38% above median its 10-year median of 20.20)
GF Value™: $65.39 vs. price of $56.66 (13.4% below fair value)
Industry Position: 126.8% above the Software median (#598 of 2075)
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.
91GF Score
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3-Year EBITDA Growth Rate is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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