Alarm.com Holdings offers cloud-based services which enable home and business owners to secure their properties and automate and control a broad array of connected devices through a single user interface. The company was founded in 2000 and is based in Vienna, Virgina.
ALRM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Alarmcom Holdings Inc. To summarize, we found that Alarmcom Holdings Inc ranked in the 34th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Alarmcom Holdings Inc, consider:
Interest coverage, a measure of earnings relative to interest payments, is 31.33; that's higher than 84.46% of US stocks in the Technology sector that have positive free cash flow.
The business' balance sheet suggests that 3% of the company's capital is sourced from debt; this is greater than just 12.88% of the free cash flow producing stocks we're observing.
ALRM's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 46.69% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ADI, EVOL, LEAF, ST, and YY can be thought of as valuation peers to ALRM, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
Alarm.com (ALRM) intends to offer $350M aggregate principal amount of Convertible Senior Notes due 2026. Company also intends to grant the initial purchasers an additional $52.5M aggregate principal amount of notes.Net proceeds to repay all outstanding borrowings under, and terminate, its credit agreement and for working capital and other general corporate...