Alarm.com Fair Value
AL
The fair market value of ALRM stock is 98.93 USD. Relative to the market price of 54.92 USD Alarm.com Holdings is undervalued by 80.1%
Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.
Fair Relative Value
Alarm.com Valuation
Current ALRM share ticker price is 54.92 USD.
The fair value level of 98.93 USD can be considered as an effective entry point for long-term investors to start investing in ALRM stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.
Price chart is not available
Current market price
Current price is 80% lower its fair value
Current price is 47% lower its minimum value
Current price is 176% lower its maximum value
Market price:
ALRM stock is greatly undervalued
It means the current price may concern as a Low Risk Entry Point
Alarm.com Holdings Inc Stock Valuation Calculator
How do we value a stock?
As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.
1
Maximum P/E over 5 years
70.22
2
Median P/E over 5 years
45.86
3
Minimum P/E over 5 years
37.46
4
Earning per share (last 12 months)
2.16 USD
Maximum value
1
x
4
=
151.47 USD
Fair value
2
x
4
=
98.93 USD
Minimum value
3
x
4
=
80.8 USD
Alarm.com Holdings Inc price metrics
2.1
Annual return (geometric mean)
40.3
Risk (standard deviation) of returns
β
0.9
Beta (volatility compared to market)