ALRM (Alarm.com Holdings) Margin of Safety % (DCF FCF Based): 46.64% (As of Jun. 25, 2026)


ALRM Alarm.com Holdings Inc ALRM
83 GF Score
Price $44.47
GF Value $64.87
Valuation Significantly Undervalued
! 2 Warning Signs
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What is Alarm.com Holdings Margin of Safety % (DCF FCF Based)?

Alarm.com Holdings ALRM +3.25% 83 Margin of Safety % (DCF FCF Based) is 46.64% as of Jun. 25, 2026. GuruFocus rates ALRM with a GF Score™ of 83/100 and a GF Value™ of $64.87 (Significantly Undervalued). The stock has 2 warning signs investors should review.

Margin of Safety % (DCF FCF Based) = (Intrinsic Value: DCF (FCF Based) - Current Price) / Intrinsic Value: DCF (FCF Based).

Note: Discounted FCF model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's Predictability Rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

As of today (2026-06-25), Alarm.com Holdings's Predictability Rank is 3.5-Stars. Alarm.com Holdings's intrinsic value calculated from the Discounted FCF model is $70.35 and current share price is $44.47. Consequently,

Alarm.com Holdings's Margin of Safety % (DCF FCF Based) using Discounted FCF model is 46.64%.

ALRM vs GRND, VERX, PLUS: Margin of Safety % (DCF FCF Based) Comparison

For the Software - Application subindustry, Alarm.com Holdings's Margin of Safety % (DCF FCF Based), along with its competitors' market caps and Margin of Safety % (DCF FCF Based) 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 Margin of Safety % (DCF FCF Based) vs Software Industry

For the Software industry and Technology sector, Alarm.com Holdings's Margin of Safety % (DCF FCF Based) distribution charts can be found below:

* The bar in red indicates where Alarm.com Holdings's Margin of Safety % (DCF FCF Based) falls into.


ALRM
83GF Score
Alarm.com Holdings Inc ALRM
Margin of Safety % (DCF FCF Based) is just one metric. See GF Score™, valuation, warning signs, and more.
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Alarm.com Holdings Margin of Safety % (DCF FCF Based) Calculation

Alarm.com Holdings's Margin of Safety % (DCF FCF Based) for today is calculated as

Margin of Safety % (DCF FCF Based)=(Intrinsic Value: DCF (FCF Based)-Current Price)/Intrinsic Value: DCF (FCF Based)
=(83.34-44.47)/83.34
=46.64 %

* 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.

The intrinsic value is calculated from the Discounted FCF model with default parameters. The calculation method is the same as Discounted Earnings model except free cash flow are used in the calculation instead of earnings per share.

What does a Margin of Safety % (DCF FCF Based) of 46.64% mean?
Alarm.com Holdings (ALRM) has a Margin of Safety % (DCF FCF Based) of 46.64% as of Jun. 25, 2026. Margin of Safety % (DCF FCF Based) is the percent difference between the current price and the intrinsic DCF FCF price. View historical data on Alarm.com Holdings.
Is Alarm.com Holdings' Margin of Safety % (DCF FCF Based) too high?
Alarm.com Holdings' current Margin of Safety % (DCF FCF Based) is 46.64%. 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' Margin of Safety % (DCF FCF Based) compare to GRND and VERX?
Alarm.com Holdings' Margin of Safety % (DCF FCF Based) of 46.64% 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 Margin of Safety % (DCF FCF Based) for a Software company?
A good Margin of Safety % (DCF FCF Based) depends on the Software industry context. However, Margin of Safety % (DCF FCF Based) 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 Margin of Safety % (DCF FCF Based) mean?
A high Margin of Safety % (DCF FCF Based) can signal that a stock is expensive relative to its fundamentals. Margin of Safety % (DCF FCF Based) is the percent difference between the current price and the intrinsic DCF FCF price. View historical data on Alarm.com Holdings. Alarm.com Holdings's current Margin of Safety % (DCF FCF Based) is 46.64%. 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 Margin of Safety % (DCF FCF Based) is 46.64%. 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 Margin of Safety % (DCF FCF Based) calculated?
Margin of Safety % (DCF FCF Based) is calculated from a company's financial statements. For Alarm.com Holdings (ALRM), the current Margin of Safety % (DCF FCF Based) is 46.64% 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:

  • Margin of Safety % (DCF FCF Based): 46.64%
  • GF Value™: $64.87 vs. price of $44.47 (31.4% below fair value)
  • GF Score™: 83/100 with 2 warning signs

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 Business Description

Other Exchanges 0HC2:UK3RL:Germany
Address 8281 Greensboro Drive, Suite 100, Tysons, VA, USA, 22102
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

Margin of Safety % (DCF FCF Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$44.47
Price
$64.87
GF Value