Alarm.com HoldingsALRM +0.11%87 FCF Yield % is 7.62 as of Jun. 25, 2026, which is 314% above its 10-year median of 1.84. GuruFocus rates ALRM with a GF Score™ of 87/100 and a GF Value™ of $64.87 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 2,867 Software companies, Alarm.com Holdings ranks better than 77.82% on this metric.
FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Alarm.com Holdings FCF Yield % Related Terms
Alarm.com Holdings FCF Yield % Historical Data
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The historical data trend for Alarm.com Holdings's FCF Yield % 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 FCF Yield %, along with its competitors' market caps and FCF Yield % 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 FCF Yield % vs Software Industry
For the Software industry and Technology sector, Alarm.com Holdings's FCF Yield % distribution charts can be found below:
* The bar in red indicates where Alarm.com Holdings's FCF Yield % falls into.
* 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 FCF Yield % of 7.62 as of Jun. 25, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Alarm.com Holdings and its competitors. This is 314% above median its historical median of 1.84. Over the past decade, Alarm.com Holdings' FCF Yield % has ranged from 0.22 to 7.74. According to the industry distribution chart, Alarm.com Holdings ranks #636 out of 2867 companies in the Software industry, placing it in the top 22.2%.
Is Alarm.com Holdings' FCF Yield % too high?
Alarm.com Holdings' current FCF Yield % of 7.62 is 314% above median its 10-year median of 1.84. Over the past 10 years, this metric has ranged from a low of 0.22 to a high of 7.74. The Software industry median FCF Yield % is 0.86. Alarm.com Holdings' value of 7.62 is 786% above this industry median. Based on the distribution chart, Alarm.com Holdings ranks #636 out of 2867 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Alarm.com Holdings has a GF Score™ of 87/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Alarm.com Holdings' FCF Yield % compare to GRND and VERX?
According to the Software industry distribution chart, Alarm.com Holdings ranks #636 out of 2867 companies for FCF Yield %. This places Alarm.com Holdings in the top 22% of its industry — outperforming the majority of peers. The industry median FCF Yield % is 0.86. Alarm.com Holdings' value of 7.62 is 786% above this benchmark. Historically, Alarm.com Holdings' own FCF Yield % has ranged from 0.22 to 7.74 over the past decade. While the company's 10-year median is 1.84 vs. the industry median of 0.86, 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 FCF Yield % for a Software company?
The median FCF Yield % among Software companies is 0.86, based on 2,867 companies in the industry. Companies in the top quartile (top 25%) have a FCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alarm.com Holdings's current FCF Yield % of 7.62 is 786% 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 FCF Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Alarm.com Holdings and its competitors. For the Software industry, the median FCF Yield % is 0.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alarm.com Holdings's current FCF Yield % is 7.62, which is 314% above median its own 10-year median of 1.84. 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 $44.52 — trading 31.4% below its estimated fair value. The current FCF Yield % is 7.62, which is 314% above median its 10-year median of 1.84 and 786% above the Software industry median of 0.86. Alarm.com Holdings' overall GF Score™ is 87/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For Alarm.com Holdings (ALRM), the current FCF Yield % is 7.62 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 $44.52 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:
FCF Yield %: 7.62 (314% above median its 10-year median of 1.84)
GF Value™: $64.87 vs. price of $44.52 (31.4% below fair value)
Industry Position: 786% above the Software median (#636 of 2867)
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.
87GF Score
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