Latest Ratios: P/E Ratio 20.7x · EV/EBITDA 14.8x · ROE 16.0%. (2012–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $2.5B | $3.0B | $3.5B | $3.5B | $2.7B | $4.4B | $5.3B | $2.2B | $2.6B | $1.9B | $1.3B |
| Enterprise Value | $2.7B | $3.2B | $3.4B | $3.4B | $2.6B | $4.2B | $5.2B | $2.1B | $2.5B | $1.8B | $1.2B |
| P/E Ratio → | 20.67 | 20.74 | 26.55 | 42.24 | 46.24 | 83.97 | 67.61 | 40.54 | 120.63 | 63.98 | 132.52 |
| P/S Ratio | 2.49 | 2.97 | 3.75 | 4.00 | 3.23 | 5.88 | 8.53 | 4.30 | 6.13 | 5.47 | 5.10 |
| P/B Ratio | 3.36 | 3.37 | 4.57 | 4.87 | 4.36 | 7.03 | 11.02 | 5.89 | 9.29 | 7.97 | 6.97 |
| P/FCF | 18.35 | 21.94 | 17.96 | 28.98 | 96.18 | 50.19 | 64.62 | 77.74 | 53.01 | 39.71 | 194.65 |
| P/OCF | 16.40 | 19.61 | 17.08 | 25.96 | 47.77 | 42.69 | 51.65 | 45.85 | 42.46 | 32.45 | 76.14 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.14 | 3.58 | 3.81 | 3.12 | 5.56 | 8.38 | 4.28 | 5.94 | 5.40 | 4.59 |
| EV / EBITDA | 14.75 | 17.45 | 22.18 | 30.27 | 28.00 | 40.71 | 61.11 | 26.58 | 71.75 | 35.15 | 56.18 |
| EV / EBIT | 19.77 | 17.03 | 21.94 | 33.17 | 43.96 | 67.09 | 62.55 | 34.73 | 170.93 | 53.14 | 82.25 |
| EV / FCF | — | 23.18 | 17.13 | 27.58 | 92.91 | 47.43 | 63.44 | 77.32 | 51.39 | 39.17 | 175.08 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 63.1% | 63.1% | 65.3% | 63.1% | 59.3% | 59.2% | 63.2% | 63.5% | 65.3% | 65.7% | 61.9% |
| Operating Margin | 13.4% | 13.4% | 11.5% | 7.6% | 6.1% | 8.2% | 9.1% | 10.0% | 2.9% | 9.8% | 5.4% |
| Net Profit Margin | 13.1% | 13.1% | 13.2% | 9.2% | 6.7% | 7.0% | 12.6% | 10.7% | 5.1% | 8.6% | 3.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 16.0% | 16.0% | 16.6% | 12.0% | 9.0% | 9.5% | 18.4% | 16.6% | 8.4% | 13.8% | 5.6% |
| ROA | 6.3% | 6.3% | 7.1% | 5.9% | 4.4% | 5.3% | 12.1% | 10.7% | 5.3% | 9.2% | 4.2% |
| ROIC | 12.2% | 12.2% | 14.0% | 9.2% | 8.4% | 12.1% | 11.4% | 13.7% | 4.5% | 18.9% | 19.9% |
| ROCE | 8.1% | 8.1% | 7.0% | 5.5% | 4.5% | 7.1% | 10.0% | 11.9% | 3.5% | 12.2% | 6.7% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.27 | 1.27 | 1.37 | 0.73 | 0.85 | 0.75 | 0.33 | 0.29 | 0.24 | 0.30 | 0.04 |
| Debt / EBITDA | 6.23 | 6.23 | 6.97 | 4.74 | 5.65 | 4.58 | 1.86 | 1.33 | 1.92 | 1.36 | 0.31 |
| Net Debt / Equity | — | 0.19 | -0.21 | -0.24 | -0.15 | -0.39 | -0.20 | -0.03 | -0.28 | -0.11 | -0.70 |
| Net Debt / EBITDA | 0.94 | 0.94 | -1.08 | -1.54 | -0.98 | -2.37 | -1.13 | -0.15 | -2.27 | -0.49 | -6.28 |
| Debt / FCF | — | 1.24 | -0.84 | -1.40 | -3.26 | -2.76 | -1.17 | -0.42 | -1.63 | -0.54 | -19.57 |
| Interest Coverage | 10.79 | 10.79 | 13.41 | 29.53 | 19.00 | 3.89 | 31.88 | 20.80 | 5.01 | 15.66 | 76.69 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.92 | 1.92 | 7.85 | 5.46 | 5.40 | 7.09 | 4.40 | 3.21 | 3.03 | 3.68 | 4.79 |
| Quick Ratio | 1.78 | 1.78 | 7.38 | 4.91 | 4.70 | 6.51 | 3.91 | 2.76 | 2.72 | 3.37 | 4.53 |
| Cash Ratio | 1.45 | 1.45 | 6.47 | 3.98 | 3.77 | 5.49 | 2.81 | 1.58 | 1.94 | 2.16 | 3.54 |
| Asset Turnover | — | 0.47 | 0.46 | 0.61 | 0.63 | 0.61 | 0.84 | 0.90 | 0.95 | 0.91 | 1.00 |
| Inventory Turnover | 3.95 | 3.95 | 3.73 | 3.38 | 2.96 | 4.06 | 5.14 | 5.37 | 6.34 | 8.20 | 9.43 |
| Days Sales Outstanding | — | 51.20 | 48.97 | 54.08 | 53.84 | 51.44 | 49.21 | 55.49 | 42.98 | 43.76 | 41.67 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.8% | 4.8% | 3.8% | 2.4% | 2.2% | 1.2% | 1.5% | 2.5% | 0.8% | 1.6% | 0.8% |
| FCF Yield | 5.5% | 4.6% | 5.6% | 3.5% | 1.0% | 2.0% | 1.5% | 1.3% | 1.9% | 2.5% | 0.5% |
| Buyback Yield | 1.7% | 1.4% | 2.1% | 0.8% | 2.9% | 0.0% | 0.1% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 1.7% | 1.4% | 2.1% | 0.8% | 2.9% | 0.0% | 0.1% | 0.0% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $59M | $58M | $55M | $55M | $52M | $51M | $50M | $50M | $49M | $48M |
Dealer Channel Platform Internalization
According to current market data, Alarm.com trades at a forward P/E of 16.72, which suggests that investors are pricing the company as a mature utility-tech entity rather than a high-growth software disruptor, especially when compared to the significantly higher multiples commanded by pure-play SaaS peers.
The current valuation appears to discount the potential for aggressive expansion, likely reflecting market concerns regarding the saturation of the North American residential security market. This multiple warrants investigation as it may undervalue the long-term potential of the EnergyHub segment if it successfully transitions into a core grid-services platform.
Based on reported figures, the company's ROIC has hovered in the low single digits, reaching only 2.3% in 2026Q1, which indicates that the firm is struggling to generate meaningful returns on its invested capital despite its entrenched position within the professional security dealer network.
The persistent gap between invested capital and returns suggests that the company's heavy R&D and infrastructure spending may be yielding diminishing marginal utility. Investors should monitor whether management can improve these returns by optimizing the hardware-to-software mix or if the current capital intensity is a structural requirement of the business model.
As reported in recent financial statements, the company's cash conversion cycle reached 111 days in 2026Q1, a significant increase from the 71-day cycle observed in 2024Q4, highlighting growing friction in managing hardware inventory and collecting payments within the dealer-centric distribution model.
This lengthening cycle suggests that the company may be carrying excess inventory or experiencing delays in dealer-side payment processing, which ties up liquidity that could otherwise be deployed more productively. The trend warrants further investigation to determine if this is a temporary supply chain bottleneck or a permanent shift in operational efficiency.
The P/E ratio is frequently misapplied to Alarm.com, as it obscures the significant impact of non-cash stock-based compensation and the lumpy nature of hardware revenue, which together distort the company's true underlying earnings power and cash-generating capacity for investors.
Analysts should instead focus on EV/EBITDA or P/FCF to better account for the company's capital structure and the recurring nature of its SaaS revenue. Relying on P/E risks misinterpreting the firm's valuation by failing to strip out the volatility inherent in its hardware-heavy segment and the dilutive effects of its compensation structure.
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Quick answers to the most common questions about buying ALRM stock.
Alarm.com Holdings, Inc.'s current P/E ratio is 20.7x. The historical average is 64.5x.
Alarm.com Holdings, Inc.'s current EV/EBITDA is 14.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 36.5x.
Alarm.com Holdings, Inc.'s return on equity (ROE) is 16.0%. The historical average is 12.7%.
Based on historical data, Alarm.com Holdings, Inc. is trading at a P/E of 20.7x. Compare with industry peers and growth rates for a complete picture.
Alarm.com Holdings, Inc. has 63.1% gross margin and 13.4% operating margin. Operating margin between 10-20% is typical for established companies.
Alarm.com Holdings, Inc.'s Debt/EBITDA ratio is 6.2x, indicating high leverage. A ratio above 4x may signal elevated financial risk.