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Alarm.com HoldingsALRM -3.18%89 EV-to-EBITDA is 11.60 as of Jul. 22, 2026, which is 63% below its 10-year median of 31.29. GuruFocus rates ALRM with a GF Score™ of 89/100 and a GF Value™ of $65.22 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,959 Software companies, Alarm.com Holdings ranks worse than 55.79% on this metric.
EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, Alarm.com Holdings's enterprise value is $2,613 Mil.
Alarm.com Holdings's EBITDA for the trailing twelve months (TTM) ended in Mar. 2026 was $225 Mil. Therefore, Alarm.com Holdings's EV-to-EBITDA for today is 11.60.
The historical rank and industry rank for Alarm.com Holdings's EV-to-EBITDA or its related term are showing as below:
ALRM'
s EV-to-EBITDA Range Over the Past 10 Years
Min: 11.13 Med: 31.29 Max: 96.27
Current: 11.6
During the past 13 years, the highest EV-to-EBITDA of Alarm.com Holdings was 96.27. The lowest was 11.13. And the median was 31.29.
ALRM's EV-to-EBITDA is ranked worse than 55.79% of 1959
companies
in the Software industry
Industry Median: 10.46
vs ALRM: 11.60
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Alarm.com Holdings's PE Ratio (TTM) for today is calculated as:
Alarm.com Holdings's share price for today is $50.54.
Alarm.com Holdings's Earnings per Share (Diluted) 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 $2.410.
* 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.
Study has found that the companies with the lowest EV-to-EBITDA outperforms companies measured as cheap by other ratios such as PE Ratio (TTM).
The historical data trend for Alarm.com Holdings's EV-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.
For the Software - Application subindustry, Alarm.com Holdings's EV-to-EBITDA, along with its competitors' market caps and EV-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 EV-to-EBITDA vs Software Industry
For the Software industry and Technology sector, Alarm.com Holdings's EV-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Alarm.com Holdings's EV-to-EBITDA falls into.
Alarm.com Holdings's current Enterprise Value is $2,613 Mil.
Alarm.com Holdings's EBITDA 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 $225 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-EBITDA of 11.60 as of Jul. 22, 2026. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Alarm.com Holdings. This is 63% below median its historical median of 31.29. Over the past decade, Alarm.com Holdings' EV-to-EBITDA has ranged from 11.13 to 96.27. According to the industry distribution chart, Alarm.com Holdings ranks #1093 out of 1959 companies in the Software industry, placing it in the top 55.8%.
Is Alarm.com Holdings' EV-to-EBITDA too high?
Alarm.com Holdings' current EV-to-EBITDA of 11.60 is 63% below median its 10-year median of 31.29. Over the past 10 years, this metric has ranged from a low of 11.13 to a high of 96.27. The Software industry median EV-to-EBITDA is 10.46. Alarm.com Holdings' value of 11.60 is 10.9% above this industry median. Based on the distribution chart, Alarm.com Holdings ranks #1093 out of 1959 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-EBITDA compare to BRZE and QNT?
According to the Software industry distribution chart, Alarm.com Holdings ranks #1093 out of 1959 companies for EV-to-EBITDA. This places Alarm.com Holdings in the lower half of its industry. The industry median EV-to-EBITDA is 10.46. Alarm.com Holdings' value of 11.60 is 10.9% above this benchmark. Historically, Alarm.com Holdings' own EV-to-EBITDA has ranged from 11.13 to 96.27 over the past decade. While the company's 10-year median is 31.29 vs. the industry median of 10.46, 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-EBITDA for a Software company?
The median EV-to-EBITDA among Software companies is 10.46, based on 1,959 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alarm.com Holdings's current EV-to-EBITDA of 11.60 is 10.9% 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-EBITDA mean?
A high EV-to-EBITDA can signal that a stock is expensive relative to its fundamentals. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Alarm.com Holdings. For the Software industry, the median EV-to-EBITDA is 10.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alarm.com Holdings's current EV-to-EBITDA is 11.60, which is 63% below median its own 10-year median of 31.29. 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 $65.22, compared to a current price of $50.54 — trading 22.5% below its estimated fair value. The current EV-to-EBITDA is 11.60, which is 63% below median its 10-year median of 31.29 and 10.9% above the Software industry median of 10.46. 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-EBITDA calculated?
EV-to-EBITDA is calculated from a company's financial statements. For Alarm.com Holdings (ALRM), the current EV-to-EBITDA is 11.60 as of Jul. 22, 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 $50.54 is trading 22.5% below its estimated GF Value™ of $65.22.
GuruFocus considers Alarm.com Holdings to be Modestly Undervalued.
Key valuation signals for ALRM:
EV-to-EBITDA: 11.60 (63% below median its 10-year median of 31.29)
GF Value™: $65.22 vs. price of $50.54 (22.5% below fair value)
Industry Position: 10.9% above the Software median (#1093 of 1959)
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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EV-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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