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Is There Now An Opportunity In Alarm.com Holdings, Inc. (NASDAQ:ALRM)?

Simply Wall St · 5d ago

Alarm.com Holdings, Inc. (NASDAQ:ALRM), is not the largest company out there, but it saw a double-digit share price rise of over 10% in the past couple of months on the NASDAQGS. The recent rally in share prices has nudged the company in the right direction, though it still falls short of its yearly peak. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let’s examine Alarm.com Holdings’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

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Is Alarm.com Holdings Still Cheap?

Great news for investors – Alarm.com Holdings is still trading at a fairly cheap price. According to our valuation, the intrinsic value for the stock is $72.86, but it is currently trading at US$52.19 on the share market, meaning that there is still an opportunity to buy now. Another thing to keep in mind is that Alarm.com Holdings’s share price may be quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.

See our latest analysis for Alarm.com Holdings

What kind of growth will Alarm.com Holdings generate?

earnings-and-revenue-growth
NasdaqGS:ALRM Earnings and Revenue Growth January 8th 2026

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Alarm.com Holdings' earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? Since ALRM is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on ALRM for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy ALRM. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.

Diving deeper into the forecasts for Alarm.com Holdings mentioned earlier will help you understand how analysts view the stock going forward. Luckily, you can check out what analysts are forecasting by clicking here.

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