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:
We started the process of determining a valid price forecast for Alarmcom Holdings Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Alarmcom Holdings Inc ranked in the 41th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Alarmcom Holdings Inc ended up being:
The company's debt burden, as measured by earnings divided by interest payments, is 21.99 -- which is good for besting 82.34% of its peer stocks (US stocks in the Technology sector with positive cash flow).
The business' balance sheet reveals debt to be 6% of the company's capital (with equity being the remaining amount). Approximately merely 15.15% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
ALRM's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 43.64% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Alarmcom Holdings Inc? See MTLS, XPER, ACIW, FIVN, and G.