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Alarm.com HoldingsALRM -1.42%89 EV-to-EBIT is 15.21 as of Jul. 21, 2026, which is 68% below its 10-year median of 47.39. GuruFocus rates ALRM with a GF Score™ of 89/100 and a GF Value™ of $65.21 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,770 Software companies, Alarm.com Holdings ranks worse than 53.5% on this metric.
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
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 adds up the quarterly data reported by the company within the most recent 12 months, which was $177 Mil.
* 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.
Alarm.com Holdings EV-to-EBIT Related Terms
Alarm.com Holdings EV-to-EBIT Historical Data
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The historical data trend for Alarm.com Holdings's EV-to-EBIT 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 EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Software Industry
For the Software industry and Technology sector, Alarm.com Holdings's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Alarm.com Holdings's EV-to-EBIT falls into.
Alarm.com Holdings's current Enterprise Value is $2,695 Mil.
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.
* 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.
Alarm.com Holdings (ALRM) has a EV-to-EBIT of 15.21 as of Jul. 21, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Alarm.com Holdings and its competitors. This is 68% below median its historical median of 47.39. Over the past decade, Alarm.com Holdings' EV-to-EBIT has ranged from 13.93 to 288.46. According to the industry distribution chart, Alarm.com Holdings ranks #947 out of 1770 companies in the Software industry, placing it in the top 53.5%.
Is Alarm.com Holdings' EV-to-EBIT too high?
Alarm.com Holdings' current EV-to-EBIT of 15.21 is 68% below median its 10-year median of 47.39. Over the past 10 years, this metric has ranged from a low of 13.93 to a high of 288.46. The Software industry median EV-to-EBIT is 14.23. Alarm.com Holdings' value of 15.21 is 6.9% above this industry median. Based on the distribution chart, Alarm.com Holdings ranks #947 out of 1770 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' EV-to-EBIT compare to BRZE and QNT?
According to the Software industry distribution chart, Alarm.com Holdings ranks #947 out of 1770 companies for EV-to-EBIT. This places Alarm.com Holdings in the lower half of its industry. The industry median EV-to-EBIT is 14.23. Alarm.com Holdings' value of 15.21 is 6.9% above this benchmark. Historically, Alarm.com Holdings' own EV-to-EBIT has ranged from 13.93 to 288.46 over the past decade. While the company's 10-year median is 47.39 vs. the industry median of 14.23, 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 EV-to-EBIT for a Software company?
The median EV-to-EBIT among Software companies is 14.23, based on 1,770 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alarm.com Holdings's current EV-to-EBIT of 15.21 is 6.9% 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 EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Alarm.com Holdings and its competitors. For the Software industry, the median EV-to-EBIT is 14.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alarm.com Holdings's current EV-to-EBIT is 15.21, which is 68% below median its own 10-year median of 47.39. 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 $65.21, compared to a current price of $52.20 — trading 20% below its estimated fair value. The current EV-to-EBIT is 15.21, which is 68% below median its 10-year median of 47.39 and 6.9% above the Software industry median of 14.23. 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 EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Alarm.com Holdings (ALRM), the current EV-to-EBIT is 15.21 as of Jul. 21, 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 $52.20 is trading 20% below its estimated GF Value™ of $65.21.
GuruFocus considers Alarm.com Holdings to be Modestly Undervalued.
Key valuation signals for ALRM:
EV-to-EBIT: 15.21 (68% below median its 10-year median of 47.39)
GF Value™: $65.21 vs. price of $52.20 (20% below fair value)
Industry Position: 6.9% above the Software median (#947 of 1770)
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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