Alarm.com Holdings, Inc. (ALRM) intrinsic value & 10-year financials

Alarm.com Holdings, Inc. (ALRM) has a Graham intrinsic value of $81.71 per share. At $57.37 on Oct 17, 2026, the stock trades 30% below that value. Over the last 10 fiscal years revenue grew 16.2% a year to $1.0B, with an average return on invested capital of 54.8%.

Graham intrinsic value
$81.71
Share price (Oct 17, 2026)
$57.37
Price vs Graham value
30% below
Market cap
$3.4B
Revenue (FY2025)
$1.0B
Revenue growth (10-yr CAGR)
16.2%
ROIC (10-yr avg)
54.8%
Free cash flow (FY2025)
$137.0M

ALRM 10-year financial history

Fiscal year Revenue Net income EPS (diluted) Free cash flow Operating margin ROIC
FY2025 $1.0B $131.6M $2.46 $137.0M 13.2% -43.9%
FY2024 $939.8M $122.5M $2.29 $196.3M 11.5% -45.0%
FY2023 $881.7M $80.3M $1.53 $128.4M 7.6% 681.6%
FY2022 $842.6M $55.6M $1.07 $28.3M 6.1% -165.1%
FY2021 $749.0M $51.2M $1.01 $92.1M 8.2% 41.4%
FY2020 $618.0M $76.7M $1.53 $85.9M 9.1% 15.4%
FY2019 $502.4M $53.5M $1.06 $27.8M 10.0% 17.1%
FY2018 $420.5M $21.5M $0.43 $49.7M 2.9% 6.0%
FY2017 $338.9M $29.3M $0.59 $46.7M 9.8% 22.9%
FY2016 $261.1M $10.2M $0.21 $8.4M 5.4% 17.3%

Source: annual 10-K filings on SEC EDGAR. Figures in USD.

Executive summary

Alarm.com Holdings, Inc. is a consistent compounder, expanding top-line revenue at 16.2% annually over the past decade.

Alarm.com Holdings, Inc. has historically struggled to out-earn its cost of capital, averaging just 3.6% ROIC.

Alarm.com Holdings, Inc. has not shown aggressive share repurchases (>10% retirement) or a major balance-sheet leverage increase (>50% net debt growth) over the 10-year window.

Benjamin Graham lens

Under Benjamin Graham's formula using SEC EDGAR fundamentals, Alarm.com Holdings, Inc. is modeled at 15.0% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $81.71 per share.

ALRM stock: frequently asked questions

What is the intrinsic value of Alarm.com Holdings, Inc. (ALRM) stock?

Using Benjamin Graham's revised formula, V = EPS × (8.5 + 2g) × 4.4 / Y, with reported diluted earnings per share, a 15.0% normalized growth rate (capped at 15%) and a 5.1% AAA corporate bond yield, ALRM's intrinsic value is about $81.71 per share.

Is ALRM stock undervalued?

At $57.37 (close on Oct 17, 2026), ALRM trades 30% below its Graham value of $81.71. On Graham's terms that leaves a margin of safety. A formula is a starting point for research, not a recommendation.

How fast has Alarm.com Holdings, Inc. grown?

Revenue went from $261.1M in fiscal 2016 to $1.0B in fiscal 2025, a compound annual growth rate of 16.2%. Net income was $131.6M in fiscal 2025.

Does Alarm.com Holdings, Inc. generate free cash flow?

Alarm.com Holdings, Inc. generated $137.0M of free cash flow (operating cash flow minus capital expenditures) in fiscal 2025. Free cash flow was positive in 10 of the last 10 reported years.

What is ALRM's return on invested capital?

Average ROIC over the last 10 fiscal years was 54.8%, and average return on equity was 12.8%. Sustained ROIC above about 15% usually points to a durable competitive advantage.

Where does this ALRM data come from?

From Alarm.com Holdings, Inc.'s annual 10-K filings on SEC EDGAR, most recently filed Aug 6, 2026. Prices are end-of-day snapshots; valuations are formula outputs, not investment advice.

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