Think of Enterprise Value as the theoretical takeover price. It is more comprehensive than market capitalization (Market Cap), which only includes common equity. Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, Alarm.com Holdings's Enterprise Value is $2,313 Mil.
Alarm.com Holdings's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 was $177 Mil. Therefore, Alarm.com Holdings's EV-to-EBIT ratio for today is 13.05.
EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA. As of today, Alarm.com Holdings's Enterprise Value is $2,313 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 ratio for today is 10.26.
EV-to-Revenue is calculated as Enterprise Value divided by its Revenue. As of today, Alarm.com Holdings's Enterprise Value is $2,313 Mil.
Alarm.com Holdings's Revenue for the trailing twelve months (TTM) ended in Mar. 2026 was $1,038 Mil. Therefore, Alarm.com Holdings's EV-to-Revenue ratio for today is 2.23.
*** Please note that the current Enterprise Value is calculated using the current market capitalization and the most recently available financial data. If key financial fields—Long-Term Debt & Capital Lease Obligation and Short-Term Debt & Capital Lease Obligation—are recorded as null in the latest reporting period, our data vendor will default to using data from the prior period with valid entries.
Alarm.com Holdings (NAS:ALRM) Enterprise Value Explanation
When an investor buy a company, the investor needs to pay not only the common shares, he/she also needs to pay the shareholders of Preferred Stocks. He also assumes the debt of the company, and receives the cash on the company's balance sheet.
If a company has more cash than debt, the investor actually pays less than the Market Cap because he immediately owns the cash once the transaction goes through.
The market value of Preferred Stock needs to be added to the market value of common stocks in the calculation of Enterprise Value.
For the companies with the same Market Cap, the smaller the Enterprise Value is, the cheaper the company is.
Enterprise Value can be negative when the company's net cash is more than its Market Cap. In this case the investor is basically getting the company for free and get paid for that.
1. EV-to-EBIT is calculated as Enterprise Value divided by its EBIT.
Alarm.com Holdings's current Enterprise Value is $2,313 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.
2. EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA.
Alarm.com Holdings's current Enterprise Value is $2,313 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.
Alarm.com Holdings's current Enterprise Value is $2,313 Mil.
Alarm.com Holdings's Revenue 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 $1,038 Mil.
Alarm.com Holdings's current Enterprise Value is $2,313 Mil.
Alarm.com Holdings's Cash Flow from Operations 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 $180 Mil.
Alarm.com Holdings's current Enterprise Value is $2,313 Mil.
Alarm.com Holdings's Free Cash Flow 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 $168 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 Enterprise Value Related Terms
Alarm.com Holdings Enterprise Value Historical Data
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The historical data trend for Alarm.com Holdings's Enterprise Value 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 GRND, VERX, PLUS: Enterprise Value Comparison
For the Software - Application subindustry, Alarm.com Holdings's Enterprise Value, along with its competitors' market caps and Enterprise Value 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 Enterprise Value vs Software Industry
For the Software industry and Technology sector, Alarm.com Holdings's Enterprise Value distribution charts can be found below:
* The bar in red indicates where Alarm.com Holdings's Enterprise Value falls into.
Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
Alarm.com Holdings's Enterprise Value for the fiscal year that ended in Dec. 2025 is calculated as
* 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 Enterprise Value of $2,313 Mil as of Jun. 25, 2026. Enterprise value equals the sum of market cap, debt and preferred shares less cash and equivalents. View historical data on Alarm.com Holdings and its competitors.
Is Alarm.com Holdings' Enterprise Value too high?
Alarm.com Holdings' current Enterprise Value is $2,313 Mil. Overall, Alarm.com Holdings has a GF Score™ of 83/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Alarm.com Holdings' Enterprise Value compare to GRND and VERX?
Alarm.com Holdings' Enterprise Value of $2,313 Mil can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Enterprise Value for a Software company?
A good Enterprise Value depends on the Software industry context. However, Enterprise Value should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Enterprise Value mean?
A high Enterprise Value can signal that a stock is expensive relative to its fundamentals. Enterprise value equals the sum of market cap, debt and preferred shares less cash and equivalents. View historical data on Alarm.com Holdings and its competitors. Alarm.com Holdings's current Enterprise Value is $2,313 Mil. 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 Significantly Undervalued. The stock's GF Value™ is $64.87, compared to a current price of $44.47 — trading 31.4% below its estimated fair value. The current Enterprise Value is $2,313 Mil. Alarm.com Holdings' overall GF Score™ is 83/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Enterprise Value calculated?
Enterprise Value is calculated from a company's financial statements. For Alarm.com Holdings (ALRM), the current Enterprise Value is $2,313 Mil as of Jun. 25, 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 $44.47 is trading 31.4% below its estimated GF Value™ of $64.87.
GuruFocus considers Alarm.com Holdings to be Significantly Undervalued.
Key valuation signals for ALRM:
Enterprise Value: $2,313 Mil
GF Value™: $64.87 vs. price of $44.47 (31.4% below fair value)
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.
83GF Score
Get the complete analysis for ALRM
Enterprise Value is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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