ALRM (Alarm.com Holdings) Moat Score: 6/10 (As of Jun. 27, 2026)


ALRM Alarm.com Holdings Inc ALRM
87 GF Score
Price $46.31
GF Value $64.89
Valuation Modestly Undervalued
! 2 Warning Signs
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What is Alarm.com Holdings Moat Score?

Alarm.com Holdings ALRM +5.20% 87 Moat Score is 6 as of Jun. 27, 2026. GuruFocus rates ALRM with a GF Score™ of 87/100 and a GF Value™ of $64.89 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 2,848 Software companies, Alarm.com Holdings ranks better than 97.89% on this metric.

Alarm.com Holdings has the Moat Score of 6, which implies that the company might have Narrow Moat - Strong narrow moat, clearly distinguishable but not wide.

Alarm.com Holdings has Narrow Moat: Alarm.com Holdings Inc has a strong narrow moat with robust customer switching costs and a valuable network effect in the smart home security market. Its proprietary technology and consistent innovation in R&D further strengthen its position. However, competitive pressures prevent it from achieving a wide moat status.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Alarm.com Holdings might have Narrow Moat - Strong narrow moat, clearly distinguishable but not wide.

Alarm.com Holdings  (NAS:ALRM) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Alarm.com Holdings Moat Score Related Terms

ALRM vs GRND, VERX, PLUS: Moat Score Comparison

For the Software - Application subindustry, Alarm.com Holdings's Moat Score, along with its competitors' market caps and Moat Score 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 Moat Score vs Software Industry

For the Software industry and Technology sector, Alarm.com Holdings's Moat Score distribution charts can be found below:

* The bar in red indicates where Alarm.com Holdings's Moat Score falls into.


ALRM
87GF Score
Alarm.com Holdings Inc ALRM
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 6 mean?
Alarm.com Holdings (ALRM) has a Moat Score of 6 as of Jun. 27, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Alarm.com Holdings ranks #60 out of 2848 companies in the Software industry, placing it in the top 2.1%.
Is Alarm.com Holdings' Moat Score too high?
Alarm.com Holdings' current Moat Score is 6. Based on the distribution chart, Alarm.com Holdings ranks #60 out of 2848 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 Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Alarm.com Holdings' Moat Score compare to GRND and VERX?
According to the Software industry distribution chart, Alarm.com Holdings ranks #60 out of 2848 companies for Moat Score. This places Alarm.com Holdings in the top 2% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Software company?
A good Moat Score depends on the Software industry context. However, Moat Score 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 Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Alarm.com Holdings's current Moat Score is 6. 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 $64.89, compared to a current price of $46.31 — trading 28.6% below its estimated fair value. The current Moat Score is 6. 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 Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Alarm.com Holdings (ALRM), the current Moat Score is 6 as of Jun. 27, 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 $46.31 is trading 28.6% below its estimated GF Value™ of $64.89. GuruFocus considers Alarm.com Holdings to be Modestly Undervalued.

Key valuation signals for ALRM:

  • Moat Score: 6
  • GF Value™: $64.89 vs. price of $46.31 (28.6% below fair value)
  • GF Score™: 87/100 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.
87GF Score

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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$46.31
Price
$64.89
GF Value