Alarm.com Holdings's yield on cost for the quarter that ended in Mar. 2026 was 0.00.
The historical rank and industry rank for Alarm.com Holdings's 5-Year Yield-on-Cost % or its related term are showing as below:
ALRM's 5-Year Yield-on-Cost % is not ranked *
in the Software industry.
Industry Median: 3.015 * Ranked among companies with meaningful 5-Year Yield-on-Cost % only.
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Alarm.com Holdings 5-Year Yield-on-Cost % Related Terms
ALRM vs BRZE, QNT, SPSC: 5-Year Yield-on-Cost % Comparison
For the Software - Application subindustry, Alarm.com Holdings's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Software Industry
For the Software industry and Technology sector, Alarm.com Holdings's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Alarm.com Holdings's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Alarm.com Holdings (ALRM) has a 5-Year Yield-on-Cost % of 0.00 as of Jul. 08, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Alarm.com Holdings and its competitors. According to the industry distribution chart, Alarm.com Holdings ranks #999999 out of 1032 companies in the Software industry.
Is Alarm.com Holdings' 5-Year Yield-on-Cost % too high?
Alarm.com Holdings' current 5-Year Yield-on-Cost % is 0.00. Based on the distribution chart, Alarm.com Holdings ranks #999999 out of 1032 companies in the Software industry, which is in the bottom quartile 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' 5-Year Yield-on-Cost % compare to BRZE and QNT?
According to the Software industry distribution chart, Alarm.com Holdings ranks #999999 out of 1032 companies for 5-Year Yield-on-Cost %. This places Alarm.com Holdings in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 3.02. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for a Software company?
The median 5-Year Yield-on-Cost % among Software companies is 3.02, based on 1,032 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Alarm.com Holdings and its competitors. For the Software industry, the median 5-Year Yield-on-Cost % is 3.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alarm.com Holdings's current 5-Year Yield-on-Cost % is 0.00. 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 $65.04, compared to a current price of $50.84 — trading 21.8% below its estimated fair value. The current 5-Year Yield-on-Cost % is 0.00. 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 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Alarm.com Holdings (ALRM), the current 5-Year Yield-on-Cost % is 0.00 as of Jul. 08, 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 $50.84 is trading 21.8% below its estimated GF Value™ of $65.04.
GuruFocus considers Alarm.com Holdings to be Modestly Undervalued.
Key valuation signals for ALRM:
5-Year Yield-on-Cost %: 0.00
GF Value™: $65.04 vs. price of $50.84 (21.8% below fair value)
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
Get the complete analysis for ALRM
5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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