Alarm Holdings Valuation
| ALRM Stock | USD 64.30 0.05 0.08% |
At this time, the firm appears to be undervalued. Alarm Holdings shows a prevailing Real Value of $66.92 per share. The current price of the firm is $64.3. Our model approximates the value of Alarm Holdings from analyzing the firm fundamentals such as return on equity of 0.12, and Profit Margin of 0.09 % as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor obtaining undervalued instruments and abandoning overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
Undervalued
Today
Please note that Alarm Holdings' price fluctuation is very steady at this time. Calculation of the real value of Alarm Holdings is based on 3 months time horizon. Increasing Alarm Holdings' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Alarm Holdings is useful when determining the fair value of the Alarm stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Alarm Holdings. Since Alarm Holdings is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Alarm Stock. However, Alarm Holdings' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 64.3 | Real 66.92 | Hype 64.28 | Naive 62.12 |
The real value of Alarm Stock, also known as its intrinsic value, is the underlying worth of Alarm Holdings Company, which is reflected in its stock price. It is based on Alarm Holdings' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Alarm Holdings' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Alarm Holdings' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Alarm Holdings helps investors to forecast how Alarm stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Alarm Holdings more accurately as focusing exclusively on Alarm Holdings' fundamentals will not take into account other important factors: Alarm Holdings Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Alarm Holdings's current stock value. Our valuation model uses many indicators to compare Alarm Holdings value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Alarm Holdings competition to find correlations between indicators driving Alarm Holdings's intrinsic value. More Info.Alarm Holdings is rated fourth in price to earning category among related companies. It is rated below average in price to book category among related companies fabricating about 0.16 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Alarm Holdings is roughly 6.38 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Alarm Holdings by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Alarm Holdings' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Alarm Holdings' earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Alarm Holdings' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Alarm Holdings and how it compares across the competition.
About Alarm Holdings Valuation
The stock valuation mechanism determines the current worth of Alarm Holdings on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Alarm Holdings. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Alarm Holdings based exclusively on its fundamental and basic technical indicators. By analyzing Alarm Holdings's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Alarm Holdings's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Alarm Holdings. We calculate exposure to Alarm Holdings's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Alarm Holdings's related companies.Alarm.com Holdings, Inc. provides cloud-based solutions for smart residential and commercial properties in the United States and internationally. Alarm.com Holdings, Inc. was founded in 2000 and is based in Tysons, Virginia. Alarm operates under SoftwareApplication classification in the United States and is traded on NASDAQ Exchange. It employs 1606 people.
8 Steps to conduct Alarm Holdings' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Alarm Holdings' potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Alarm Holdings' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Alarm Holdings' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Alarm Holdings' revenue streams: Identify Alarm Holdings' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Alarm Holdings' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Alarm Holdings' growth potential: Evaluate Alarm Holdings' management, business model, and growth potential.
- Determine Alarm Holdings' financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Alarm Holdings' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Alarm Holdings Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Alarm Holdings does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 54.6 M | |
| Quarterly Earnings Growth Y O Y | 0.702 | |
| Forward Price Earnings | 31.9489 |
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Alarm Holdings. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in metropolitan statistical area. To learn how to invest in Alarm Stock, please use our How to Invest in Alarm Holdings guide.You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Complementary Tools for Alarm Stock analysis
When running Alarm Holdings' price analysis, check to measure Alarm Holdings' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Alarm Holdings is operating at the current time. Most of Alarm Holdings' value examination focuses on studying past and present price action to predict the probability of Alarm Holdings' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Alarm Holdings' price. Additionally, you may evaluate how the addition of Alarm Holdings to your portfolios can decrease your overall portfolio volatility.
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Is Alarm Holdings' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Alarm Holdings. If investors know Alarm will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Alarm Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Alarm Holdings is measured differently than its book value, which is the value of Alarm that is recorded on the company's balance sheet. Investors also form their own opinion of Alarm Holdings' value that differs from its market value or its book value, called intrinsic value, which is Alarm Holdings' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Alarm Holdings' market value can be influenced by many factors that don't directly affect Alarm Holdings' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Alarm Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if Alarm Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Alarm Holdings' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.