Alarm.com Holdings, Inc.

LSE:0HC2 Stock Report

Market Cap: US$3.0b

Alarm.com Holdings Valuation

Is 0HC2 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 0HC2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0HC2 ($59.93) is trading below our estimate of fair value ($61.31)

Significantly Below Fair Value: 0HC2 is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0HC2?

Key metric: As 0HC2 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0HC2. This is calculated by dividing 0HC2's market cap by their current earnings.
What is 0HC2's PE Ratio?
PE Ratio23.7x
EarningsUS$125.09m
Market CapUS$2.96b

Price to Earnings Ratio vs Peers

How does 0HC2's PE Ratio compare to its peers?

The above table shows the PE ratio for 0HC2 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average48x
BYIT Bytes Technology Group
19.3x7.1%UK£1.0b
GBG GB Group
104.7x36.6%UK£852.7m
ALFA Alfa Financial Software Holdings
27.9x6.3%UK£616.8m
SGE Sage Group
40.2x12.5%UK£13.0b
0HC2 Alarm.com Holdings
23.7x7.7%US$3.0b

Price-To-Earnings vs Peers: 0HC2 is good value based on its Price-To-Earnings Ratio (23.7x) compared to the peer average (48x).

Price to Earnings Ratio vs Industry

How does 0HC2's PE Ratio compare vs other companies in the GB Software Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
SORT Sorted Group Holdings
2.9xn/aUS$5.05m
No more companies available in this PE range
0HC2 23.7xIndustry Avg. 31.3xNo. of Companies4PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0HC2 is good value based on its Price-To-Earnings Ratio (23.7x) compared to the UK Software industry average (31.3x).

Price to Earnings Ratio vs Fair Ratio

What is 0HC2's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

0HC2 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.7x
Fair PE Ratio38.7x

Price-To-Earnings vs Fair Ratio: 0HC2 is good value based on its Price-To-Earnings Ratio (23.7x) compared to the estimated Fair Price-To-Earnings Ratio (38.7x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 0HC2 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$59.93
US$73.63
+22.9%
15.4%US$85.00US$50.00n/a8
Jan ’26US$60.91
US$73.63
+20.9%
15.4%US$85.00US$50.00n/a8
Dec ’25US$64.76
US$72.63
+12.1%
15.5%US$85.00US$50.00n/a8
Nov ’25US$53.67
US$73.71
+37.3%
13.8%US$85.00US$60.00n/a7
Oct ’25US$53.34
US$77.00
+44.4%
10.8%US$85.00US$64.00n/a8
Sep ’25US$59.49
US$78.86
+32.6%
9.1%US$85.00US$65.00n/a7
Aug ’25US$68.70
US$79.86
+16.2%
7.6%US$85.00US$70.00n/a7
Jul ’25US$61.69
US$80.71
+30.8%
6.5%US$85.00US$70.00n/a7
Jun ’25US$65.00
US$80.71
+24.2%
6.5%US$85.00US$70.00n/a7
May ’25US$66.61
US$80.78
+21.3%
6.1%US$85.00US$70.00n/a8
Apr ’25US$73.03
US$80.78
+10.6%
6.1%US$85.00US$70.00n/a8
Mar ’25US$75.47
US$80.57
+6.8%
6.5%US$85.00US$70.00n/a7
Feb ’25US$61.45
US$68.57
+11.6%
5.5%US$75.00US$62.00n/a7
Jan ’25US$65.31
US$66.25
+1.4%
8.5%US$75.00US$55.00US$60.918
Dec ’24US$55.71
US$66.25
+18.9%
8.5%US$75.00US$55.00US$64.768
Nov ’24US$50.02
US$66.00
+31.9%
8.9%US$75.00US$55.00US$53.678
Oct ’24US$60.91
US$66.00
+8.4%
8.9%US$75.00US$55.00US$53.348
Sep ’24US$58.88
US$65.25
+10.8%
9.3%US$75.00US$55.00US$59.498
Aug ’24US$55.41
US$63.50
+14.6%
10.2%US$75.00US$55.00US$68.708
Jul ’24US$51.35
US$64.13
+24.9%
12.3%US$75.00US$54.00US$61.698
Jun ’24US$49.54
US$64.13
+29.4%
12.3%US$75.00US$54.00US$65.008
May ’24US$47.78
US$65.57
+37.2%
11.3%US$75.00US$55.00US$66.617
Apr ’24US$49.16
US$64.00
+30.2%
10.7%US$75.00US$55.00US$73.036
Mar ’24US$51.25
US$62.29
+21.5%
12.2%US$75.00US$52.00US$75.477
Feb ’24n/a
US$74.00
0%
26.2%US$120.00US$52.00US$61.458
Jan ’24US$49.38
US$74.00
+49.9%
26.2%US$120.00US$52.00US$65.318

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/08 22:21
End of Day Share Price 2025/01/08 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Alarm.com Holdings, Inc. is covered by 18 analysts. 8 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Saket KaliaBarclays
Michael FunkBofA Global Research
Michael NemeroffCredit Suisse