Alarm.com HoldingsLTS:0HC2 +4.23%87 PB Ratio is 2.80 as of Jul. 02, 2026, which is 57% below its 10-year median of 6.49. GuruFocus rates LTS:0HC2 with a GF Score™ of 87/100 and a GF Value™ of $64.54 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 2,620 Software companies, Alarm.com Holdings ranks worse than 54.85% on this metric.
Alarm.com Holdings Inc stock PB Ratio (=2.68) is close to 10-year low of 2.44.
The historical rank and industry rank for Alarm.com Holdings's PB Ratio or its related term are showing as below:
LTS:0HC2'
s PB Ratio Range Over the Past 10 Years
Min: 2.44 Med: 6.49 Max: 11.71
Current: 2.79
During the past 13 years, Alarm.com Holdings's highest PB Ratio was 11.71. The lowest was 2.44. And the median was 6.49.
LTS:0HC2's PB Ratio is ranked worse than 54.85% of 2620
companies
in the Software industry
Industry Median: 2.37
vs LTS:0HC2: 2.79
During the past 12 months, Alarm.com Holdings's average Book Value Per Share Growth Rate was 13.90% per year.
During the past 3 years, the average Book Value Per Share Growth Rate was 12.20% per year.
During the past 5 years, the average Book Value Per Share Growth Rate was 11.00% per year.
During the past 10 years, the average Book Value Per Share Growth Rate was 17.50% per year.
During the past 13 years, the highest 3-Year average Book Value Per Share Growth Rate of Alarm.com Holdings was 28.30% per year. The lowest was 6.30% per year. And the median was 17.00% per year.
Back to Basics: PB Ratio
Alarm.com Holdings (LTS:0HC2) PB Ratio Explanation
The PB Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.
Be Aware
Some businesses have very light assets, such as software companies or insurance agencies. The PB Ratio does not work well for these companies. Some companies even have negative equity, so the PB Ratio cannot be applied to them.
Alarm.com Holdings PB Ratio Related Terms
Alarm.com Holdings PB Ratio Historical Data
* Premium members only.
The historical data trend for Alarm.com Holdings's PB Ratio 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 PB Ratio, along with its competitors' market caps and PB Ratio 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 PB Ratio vs Software Industry
For the Software industry and Technology sector, Alarm.com Holdings's PB Ratio distribution charts can be found below:
* The bar in red indicates where Alarm.com Holdings's PB Ratio falls into.
The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. It is a ratio widely used to value stocks.
* 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.
It can also be calculated from the numbers for the whole company:
A closely related ratio is called Price-to-Tangible-Book. The difference between Price-to-Tangible-Book and PB Ratio is that book value other than intangibles are used in the calculation.
Alarm.com Holdings (LTS:0HC2) has a PB Ratio of 2.80 as of Jul. 02, 2026. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on Alarm.com Holdings and its competitors. This is 57% below median its historical median of 6.49. Over the past decade, Alarm.com Holdings' PB Ratio has ranged from 2.44 to 11.71. According to the industry distribution chart, Alarm.com Holdings ranks #1437 out of 2620 companies in the Software industry, placing it in the top 54.8%.
Is Alarm.com Holdings' PB Ratio too high?
Alarm.com Holdings' current PB Ratio of 2.80 is 57% below median its 10-year median of 6.49. Over the past 10 years, this metric has ranged from a low of 2.44 to a high of 11.71. The Software industry median PB Ratio is 2.37. Alarm.com Holdings' value of 2.80 is 18.1% above this industry median. Based on the distribution chart, Alarm.com Holdings ranks #1437 out of 2620 companies in the Software industry, which is below the industry midpoint. 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' PB Ratio compare to BRZE and QNT?
According to the Software industry distribution chart, Alarm.com Holdings ranks #1437 out of 2620 companies for PB Ratio. This places Alarm.com Holdings in the lower half of its industry. The industry median PB Ratio is 2.37. Alarm.com Holdings' value of 2.80 is 18.1% above this benchmark. Historically, Alarm.com Holdings' own PB Ratio has ranged from 2.44 to 11.71 over the past decade. While the company's 10-year median is 6.49 vs. the industry median of 2.37, 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 PB Ratio for a Software company?
The median PB Ratio among Software companies is 2.37, based on 2,620 companies in the industry. Companies in the top quartile (top 25%) have a PB Ratio significantly above this median, while those in the bottom quartile fall well below. However, PB Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alarm.com Holdings's current PB Ratio of 2.80 is 18.1% 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 PB Ratio mean?
A high PB Ratio can signal that a stock is expensive relative to its fundamentals. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on Alarm.com Holdings and its competitors. For the Software industry, the median PB Ratio is 2.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alarm.com Holdings's current PB Ratio is 2.80, which is 57% below median its own 10-year median of 6.49. 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 (LTS:0HC2) is currently considered Modestly Undervalued. The stock's GF Value™ is $64.54, compared to a current price of $48.81 — trading 24.4% below its estimated fair value. The current PB Ratio is 2.80, which is 57% below median its 10-year median of 6.49 and 18.1% above the Software industry median of 2.37. 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 PB Ratio calculated?
PB Ratio is calculated from a company's financial statements. For Alarm.com Holdings (LTS:0HC2), the current PB Ratio is 2.80 as of Jul. 02, 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 (LTS:0HC2) Overvalued in 2026?
Based on GuruFocus' analysis, Alarm.com Holdings stock appears to be undervalued.
The current stock price of $48.81 is trading 24.4% below its estimated GF Value™ of $64.54.
GuruFocus considers Alarm.com Holdings to be Modestly Undervalued.
Key valuation signals for LTS:0HC2:
PB Ratio: 2.80 (57% below median its 10-year median of 6.49)
GF Value™: $64.54 vs. price of $48.81 (24.4% below fair value)
Industry Position: 18.1% above the Software median (#1437 of 2620)
No single metric tells the full story. See the LTS:0HC2 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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