Alarm.com HoldingsLTS:0HC2 87 PS Ratio is 2.76 as of Jul. 05, 2026, which is 44% below its 10-year median of 4.89. GuruFocus rates LTS:0HC2 with a GF Score™ of 87/100 and a GF Value™ of $64.74 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 2,775 Software companies, Alarm.com Holdings ranks worse than 58.67% on this metric.
The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Alarm.com Holdings's share price is $49.50.
Alarm.com Holdings's Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2026 was $17.93. Hence, Alarm.com Holdings's PS Ratio for today is 2.76.
The historical rank and industry rank for Alarm.com Holdings's PS Ratio or its related term are showing as below:
LTS:0HC2'
s PS Ratio Range Over the Past 10 Years
Min: 2.37 Med: 4.89 Max: 8.66
Current: 2.77
During the past 13 years, Alarm.com Holdings's highest PS Ratio was 8.66. The lowest was 2.37. And the median was 4.89.
LTS:0HC2's PS Ratio is ranked worse than 58.67% of 2775
companies
in the Software industry
Industry Median: 2.06
vs LTS:0HC2: 2.77
Alarm.com Holdings Inc has shown predictable revenue and earnings growth.
During the past 12 months, the average Revenue per Share Growth Rate of Alarm.com Holdings was 11.10% per year.
During the past 3 years, the average Revenue per Share Growth Rate was 3.80% per year.
During the past 5 years, the average Revenue per Share Growth Rate was 6.30% per year.
During the past 10 years, the average Revenue per Share Growth Rate was 11.40% per year.
During the past 13 years, Alarm.com Holdings's highest 3-Year average Revenue per Share Growth Rate was 52.80% per year. The lowest was -0.80% per year. And the median was 17.90% per year.
Back to Basics: PS Ratio
Alarm.com Holdings (LTS:0HC2) PS Ratio Explanation
The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.
When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.
The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.
Alarm.com Holdings PS Ratio Related Terms
Alarm.com Holdings PS Ratio Historical Data
* Premium members only.
The historical data trend for Alarm.com Holdings's PS 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 PS Ratio, along with its competitors' market caps and PS 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 PS Ratio vs Software Industry
For the Software industry and Technology sector, Alarm.com Holdings's PS Ratio distribution charts can be found below:
* The bar in red indicates where Alarm.com Holdings's PS Ratio falls into.
The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.
Alarm.com Holdings's Share Price of today is $49.50. Alarm.com Holdings's Revenue per Share 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 $17.93.
* 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:
Alarm.com Holdings (LTS:0HC2) has a PS Ratio of 2.76 as of Jul. 05, 2026. Price-to-Sales ratio is the ratio of share price to a company's revenue per share. View historical data on Alarm.com Holdings and its competitors. This is 44% below median its historical median of 4.89. Over the past decade, Alarm.com Holdings' PS Ratio has ranged from 2.37 to 8.66. According to the industry distribution chart, Alarm.com Holdings ranks #1628 out of 2775 companies in the Software industry, placing it in the top 58.7%.
Is Alarm.com Holdings' PS Ratio too high?
Alarm.com Holdings' current PS Ratio of 2.76 is 44% below median its 10-year median of 4.89. Over the past 10 years, this metric has ranged from a low of 2.37 to a high of 8.66. The Software industry median PS Ratio is 2.06. Alarm.com Holdings' value of 2.76 is 34% above this industry median. Based on the distribution chart, Alarm.com Holdings ranks #1628 out of 2775 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' PS Ratio compare to BRZE and QNT?
According to the Software industry distribution chart, Alarm.com Holdings ranks #1628 out of 2775 companies for PS Ratio. This places Alarm.com Holdings in the lower half of its industry. The industry median PS Ratio is 2.06. Alarm.com Holdings' value of 2.76 is 34% above this benchmark. Historically, Alarm.com Holdings' own PS Ratio has ranged from 2.37 to 8.66 over the past decade. While the company's 10-year median is 4.89 vs. the industry median of 2.06, 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 PS Ratio for a Software company?
The median PS Ratio among Software companies is 2.06, based on 2,775 companies in the industry. Companies in the top quartile (top 25%) have a PS Ratio significantly above this median, while those in the bottom quartile fall well below. However, PS Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alarm.com Holdings's current PS Ratio of 2.76 is 34% 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 PS Ratio mean?
A high PS Ratio can signal that a stock is expensive relative to its fundamentals. Price-to-Sales ratio is the ratio of share price to a company's revenue per share. View historical data on Alarm.com Holdings and its competitors. For the Software industry, the median PS Ratio is 2.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alarm.com Holdings's current PS Ratio is 2.76, which is 44% below median its own 10-year median of 4.89. 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 $64.74, compared to a current price of $49.50 — trading 23.5% below its estimated fair value. The current PS Ratio is 2.76, which is 44% below median its 10-year median of 4.89 and 34% above the Software industry median of 2.06. 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 PS Ratio calculated?
PS Ratio is calculated from a company's financial statements. For Alarm.com Holdings (LTS:0HC2), the current PS Ratio is 2.76 as of Jul. 05, 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 $49.50 is trading 23.5% below its estimated GF Value™ of $64.74.
GuruFocus considers Alarm.com Holdings to be Modestly Undervalued.
Key valuation signals for LTS:0HC2:
PS Ratio: 2.76 (44% below median its 10-year median of 4.89)
GF Value™: $64.74 vs. price of $49.50 (23.5% below fair value)
Industry Position: 34% above the Software median (#1628 of 2775)
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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