ALRM - Alarm.com Holdings Inc Stock Price, Fair Value and News

66.02USD+0.79 (+1.21%)Delayed

Market Summary

USD66.02+0.79

Delayed

1.21%

ALRM Alerts

3 major insider sales recently.

ALRM Stock Price

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ALRM RSI Chart

ALRM Valuation

Market Cap

3.3B

Price/Earnings (Trailing)

41.04

Price/Sales (Trailing)

3.74

EV/EBITDA

20.09

Price/Free Cashflow

25.67

ALRM Price/Sales (Trailing)

ALRM Profitability

EBT Margin

11.10%

Return on Equity

11.67%

Return on Assets

5.58%

Free Cashflow Yield

3.9%

ALRM Fundamentals

ALRM Revenue

Revenue (TTM)

881.7M

Rev. Growth (Yr)

8.7%

Rev. Growth (Qtr)

1.98%

ALRM Earnings

Earnings (TTM)

80.3M

Earnings Growth (Yr)

75.22%

Earnings Growth (Qtr)

61.08%

Breaking Down ALRM Revenue

Last 7 days

3.0%

Last 30 days

-9.5%

Last 90 days

6.7%

Trailing 12 Months

39.2%

How does ALRM drawdown profile look like?

ALRM Financial Health

Current Ratio

5.46

Debt/Equity

0.16

Debt/Cashflow

1.24

ALRM Investor Care

Shares Dilution (1Y)

0.63%

Diluted EPS (TTM)

1.53

Historical Charts for Stock Metrics

Get all data in R, Python etc through our Historical Stock Data APIs

Net sales

Year	Q1	Q2	Q3	Q4
2023	846.8M	857.9M	863.6M	881.7M
2022	781.9M	805.9M	829.7M	842.6M
2021	638.6M	685.8M	719.3M	749.0M
2020	542.0M	561.9M	592.9M	618.0M
2019	440.1M	457.2M	473.3M	502.4M
2018	357.5M	376.0M	397.9M	420.5M
2017	276.3M	297.8M	319.9M	338.9M
2016	221.9M	234.4M	248.2M	261.1M
2015	176.5M	186.3M	197.5M	208.9M
2014	0	142.6M	154.9M	167.3M
2013	0	0	0	130.2M

Get all data in R, Python etc through our Historical Stock Data APIs

GRUFITY'S FAIR VALUE MODEL

Stocks Marked 'Very Cheap' by Grufity's Fair Value Model Have Outperformed Russell 2000 Index

Small Caps and Mid Caps are mostly overlooked by investors as all the focus goes to Magnificent 7. These stocks that are not part of the beauty contest require a deeper look. However, all large cap stocks were once small caps. Grufity's Fair Value model opens up this unverse as it separates high-performing, rewarding stocks from low-performing risky stocks. <b>Russell 2000 stocks that were marked 'Very Cheap' by the model doubled in three years while the index was flat.</b>

Returns of $10,000 invested in:

Very Cheap Stocks: $21,859
Russell 2000 Index: $10,334
Very Expensive Stocks: $8,224

Russell 2000 stocks considered 'Very Cheap' by the model greatly outperformed Russell 2000 index and the 'Very Expensive' bucket over past three years.

Russell 2000 Index

Very Expensive Stocks

Very Cheap Stocks

Try For Just $1.99

Tracking the Latest Insider Buys and Sells of Alarm.com Holdings Inc

Filter Transactions

Datesorted ascending	Name	Buy/Sell	$ Value	Avg. Price	# Shares	Title
Apr 02, 2024	bedell jeffrey a	sold	-99,260	70.00	-1,418	see remarks
Apr 02, 2024	valenzuela steve	sold	-120,120	70.00	-1,716	chief financial officer
Apr 02, 2024	kerzner daniel	sold	-197,400	70.00	-2,820	see remarks
Apr 02, 2024	ramos daniel	sold	-99,260	70.00	-1,418	see remarks
Apr 02, 2024	trundle stephen	sold	-225,190	70.00	-3,217	chief executive officer
Mar 15, 2024	nevin darius g	sold	-190,715	73.55	-2,593	-
Mar 07, 2024	valenzuela steve	sold	-62,050	74.58	-832	chief financial officer
Mar 07, 2024	valenzuela steve	acquired	44,422	53.3925	832	chief financial officer
Mar 01, 2024	trundle stephen	gifted	-	-	-5,000	chief executive officer
Feb 29, 2024	valenzuela steve	acquired	435,239	61.4484	7,083	chief financial officer

Which funds bought or sold ALRM recently?

View All Details

Datesorted ascending	Fund Name	Type	% Chg	$ Change	$ Held	% Portfolio
Apr 25, 2024	nVerses Capital, LLC	new	-	7,247	7,247	0.02%
Apr 25, 2024	NATIXIS ADVISORS, L.P.	new	-	770,000	770,000	-%
Apr 25, 2024	Lindbrook Capital, LLC	unchanged	-	2,057	18,987	-%
Apr 25, 2024	Allworth Financial LP	reduced	-50.00	-397	508	-%
Apr 25, 2024	Mendota Financial Group, LLC	unchanged	-	236	2,175	-%
Apr 25, 2024	Zurcher Kantonalbank (Zurich Cantonalbank)	reduced	-10.84	-39.00	756,080	-%
Apr 25, 2024	SIMPLEX TRADING, LLC	new	-	57,000	57,000	-%
Apr 25, 2024	Bank of New York Mellon Corp	unchanged	-	6,506	184,320	-%
Apr 25, 2024	NEW YORK STATE TEACHERS RETIREMENT SYSTEM	reduced	-0.25	308,000	2,909,000	0.01%
Apr 25, 2024	Bank of New York Mellon Corp	reduced	-5.51	1,668,310	29,605,800	0.01%

Are Funds Buying or Selling ALRM?

Are funds buying ALRM calls or puts?

Calls

Puts

No. of funds holding Calls - Puts

Net Call Options

No. of funds that own ALRM

No. of Funds

ALRM Alerts

3 major insider sales recently.

Unveiling Alarm.com Holdings Inc's Major ShareHolders

Date Filed	Name of Filer	Percent of Class	No. of Shares	Form Type
Feb 14, 2024	brown capital management llc	8.99%	4,492,512	SC 13G/A
Feb 13, 2024	vanguard group inc	11.64%	5,817,244	SC 13G/A
Feb 12, 2024	william blair investment management, llc	5.0%	2,499,896	SC 13G
Jan 22, 2024	blackrock inc.	17.6%	8,809,490	SC 13G/A
Feb 14, 2023	brown capital management llc	10.45%	5,215,242	SC 13G/A
Feb 10, 2023	blackrock inc.	17.1%	8,520,384	SC 13G/A
Feb 09, 2023	william blair investment management, llc	4.9%	2,487,354	SC 13G/A
Feb 09, 2023	vanguard group inc	11.04%	5,511,037	SC 13G/A
Jan 26, 2023	blackrock inc.	16.9%	8,439,774	SC 13G/A
Jan 20, 2023	blackrock inc.	16.9%	8,439,774	SC 13G/A

Recent SEC filings of Alarm.com Holdings Inc

View All Filings

Date Filed	Form Type	Document
Apr 23, 2024	ARS	ARS
Apr 23, 2024	DEF 14A	DEF 14A
Apr 23, 2024	DEFA14A	DEFA14A
Apr 03, 2024	4	Insider Trading
Apr 03, 2024	4	Insider Trading
Apr 03, 2024	4	Insider Trading
Apr 03, 2024	4	Insider Trading
Apr 03, 2024	4	Insider Trading
Apr 02, 2024	144	Notice of Insider Sale Intent
Apr 02, 2024	144	Notice of Insider Sale Intent

Peers (Alternatives to Alarm.com Holdings Inc)

Name	Mkt Capsorted ascending	Revenue	Price %, 1M	Returns, 1Y	P/E	P/S	Rev 1-Yr	Inc 1-Yr
LARGE-CAP
CRM	266.0B	34.9B	-9.03%	39.93%	64.3	7.63	11.18%	1888.46%
UBER	143.4B	37.3B	-11.61%	132.46%	75.97	3.85	16.95%	120.64%
ADSK	46.6B	5.3B	-16.46%	14.68%	50.86	8.72	9.15%	48.14%
ANSS	29.1B	2.3B	-3.99%	6.05%	58.09	12.81	9.90%	-4.45%
ZM	18.6B	4.5B	-6.92%	1.17%	29.26	4.12	3.06%	514.65%
MID-CAP
APPF	8.8B	671.8M	-1.98%	88.41%	114.56	13.04	33.64%	185.98%
LYFT	6.3B	4.4B	-15.97%	60.49%	-18.54	1.43	7.53%	78.52%
AYX	3.4B	970.0M	0.90%	-15.87%	-19.13	3.53	13.46%	43.89%
ALRM	3.3B	881.7M	-9.49%	39.17%	41.04	3.74	4.64%	44.42%
AI	2.8B	296.4M	-16.25%	29.79%	-10.12	9.28	11.14%	-3.59%
AGYS	2.3B	228.1M	0.58%	5.99%	25.98	9.94	18.99%	599.09%
SMALL-CAP
AVID	1.2B	413.5M	0.63%	-1.64%	92.02	2.88	-1.65%	-71.35%
APPS	185.7M	572.4M	-30.27%	-84.96%	-0.94	0.32	-19.38%	-489.49%
ASUR	185.6M	119.1M	-7.97%	-44.92%	-20.14	1.56	24.27%	36.31%
AEYE	167.1M	31.3M	39.41%	131.23%	-28.46	5.34	4.69%	43.72%

Alarm.com Holdings Inc News

Latest updates

Alarm.com Holdings Inc Earnings Report: Key Takeaways & Analysis

Income Statement (Last 12 Months)

(In Millions)

(*) denotes actual numbers (not divided by Millions)
Income Statement (Quarterly)																					(In Millions)
Description	(%) Q/Q	2023Q4	2023Q3	2023Q2	2023Q1	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4	2021Q3	2021Q2	2021Q1	2020Q4	2020Q3	2020Q2	2020Q1	2019Q4	2019Q3	2019Q2	2019Q1	2018Q4
Revenue	2.0%	226	222	224	210	208	216	213	205	195	192	189	172	166	159	142	152	140	128	122	112	111
Operating Expenses	-4.0%	119	124	121	125	114	114	114	106	102	93.00	95.00	92.00	93.00	80.00	78.00	84.00	73.00	68.00	63.00	64.00	64.00
S&GA Expenses	8.7%	26.00	24.00	24.00	27.00	24.00	23.00	23.00	23.00	25.00	23.00	21.00	19.00	24.00	18.00	17.00	17.00	18.00	15.00	16.00	13.00	16.00
R&D Expenses	0.4%	61.00	61.00	61.00	62.00	57.00	56.00	54.00	51.00	48.00	44.00	43.00	42.00	39.00	37.00	37.00	40.00	30.00	29.00	28.00	26.00	24.00
EBITDA Margin	-	0.15*	-	0.12*	0.11*	0.10*	0.09*	0.09*	0.09*	0.10*	0.12*	0.16*	0.18*	-	-	-	-	-	-	-	-	-
Income Taxes	105.4%	8.00	4.00	7.00	-1.22	1.00	0.00	1.00	-0.60	-2.24	2.00	-1.74	-2.91	-1.97	7.00	-2.28	1.00	2.00	3.00	0.00	0.00	1.00
Earnings Before Taxes	68.9%	39.00	23.00	22.00	13.00	18.00	18.00	12.00	8.00	7.00	15.00	13.00	12.00	14.00	42.00	14.00	10.00	15.00	21.00	14.00	9.00	9.00
EBT Margin	24.9%	0.11*	0.09*	0.08*	0.07*	0.07*	0.05*	0.05*	0.05*	0.06*	0.07*	0.12*	0.13*	-	-	-	-	-	-	-	-	-
Net Income	61.1%	31.00	19.00	16.00	14.00	18.00	18.00	11.00	9.00	9.00	13.00	14.00	15.00	16.00	36.00	17.00	9.00	13.00	18.00	14.00	9.00	8.00
Net Income Margin	17.5%	0.09*	0.08*	0.08*	0.07*	0.07*	0.06*	0.05*	0.06*	0.07*	0.08*	0.12*	0.13*	-	-	-	-	-	-	-	-	-
Free Cashflow	-38.1%	38.00	61.00	36.00	-5.92	34.00	8.00	2.00	-16.13	18.00	36.00	21.00	17.00	-	-	-	-	-	-	-	-	-

Balance Sheet

(In Millions)

(*) denotes actual numbers (not divided by Millions)
Balance Sheet																					(In Millions)
Description	(%) Q/Q	2023Q4	2023Q3	2023Q2	2023Q1	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4	2021Q3	2021Q2	2021Q1	2020Q4	2020Q3	2020Q2	2020Q1	2019Q4	2019Q3	2019Q2	2019Q1	2018Q4
Assets	2.0%	1,440	1,411	1,383	1,358	1,329	1,310	1,256	1,225	1,232	1,182	1,157	1,115	732	698	663	624	558	501	505	480	441
Current Assets	2.8%	957	931	898	881	891	880	886	889	918	871	838	796	397	387	348	309	244	264	268	241	228
Cash Equivalents	2.5%	697	680	627	606	622	621	643	672	711	700	663	642	253	247	206	172	120	164	151	122	146
Inventory	-15.8%	96.00	114	118	118	116	112	108	86.00	75.00	57.00	60.00	47.00	44.00	40.00	50.00	37.00	34.00	21.00	24.00	26.00	23.00
Net PPE	-3.0%	54.00	56.00	57.00	57.00	57.00	59.00	61.00	40.00	42.00	42.00	44.00	45.00	45.00	43.00	41.00	39.00	39.00	32.00	30.00	29.00	28.00
Goodwill	0.4%	154	154	154	155	148	35.00	113	113	113	113	113	113	113	106	106	105	105	64.00	64.00	64.00	64.00
Liabilities	0.2%	715	713	711	706	707	693	678	647	606	573	572	555	253	249	259	247	191	165	193	187	163
Current Liabilities	2.0%	175	172	166	161	165	151	141	107	129	102	104	91.00	90.00	83.00	93.00	78.00	76.00	57.00	83.00	76.00	75.00
Long Term Debt	-	-	-	-	-	-	-	-	-	-	-	-	-	110	111	112	113	63.00	64.00	65.00	66.00	67.00
LT Debt, Non Current	-	-	-	-	-	-	-	-	-	-	-	-	-	110	111	112	113	63.00	64.00	65.00	66.00	67.00
Shareholder's Equity	3.1%	689	668	644	625	599	594	561	563	613	597	573	549	468	439	393	366	356	336	312	292	278
Retained Earnings	13.3%	266	235	215	200	185	167	149	138	119	110	96.00	81.00	67.00	51.00	15.00	-2.47	-10.46	-23.50	-41.19	-54.98	0.00
Additional Paid-In Capital	0.5%	532	529	518	509	497	483	469	453	499	492	482	472	406	393	383	373	366	359	353	347	341
Shares Outstanding	-0.1%	50.00	50.00	50.00	50.00	49.00	50.00	50.00	50.00	50.00	50.00	50.00	-	-	-	-	-	-	-	-	-	-
Float	-	-	-	1,500	-	-	-	1,800	-	-	-	2,400	-	-	-	2,300	-	-	-	1,700	-	-

Cashflow (Last 12 Months)

(In Thousands)

(*) denotes actual numbers (not divided by Thousands)
Cashflow (Quarterly)																					(In Thousands)
Description	(%) Q/Q	2023Q4	2023Q3	2023Q2	2023Q1	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4	2021Q3	2021Q2	2021Q1	2020Q4	2020Q3	2020Q2	2020Q1	2019Q4	2019Q3	2019Q2	2019Q1	2018Q4
Cashflow From Operations	-36.5%	39,872	62,826	36,788	-3,521	34,446	10,197	26,219	-13,961	19,963	37,886	24,076	21,232	35,410	18,622	35,148	12,900	23,265	980	24,054	-1,187	25,732
Share Based Compensation	-8.0%	10,860	11,806	11,931	12,686	14,601	13,154	12,789	12,110	11,332	9,418	10,056	7,888	8,275	7,448	7,095	6,358	5,882	5,035	5,420	4,266	3,759
Cashflow From Investing	-97.3%	-4,231	-2,144	-6,648	-12,943	-5,694	-33,495	-26,975	-2,155	-6,468	-1,521	-3,309	-9,067	-32,510	21,542	-2,293	-7,013	-67,525	12,480	4,654	-23,023	-4,060
Cashflow From Financing	-132.3%	-16,620	-7,156	-8,931	842	-27,849	1,361	-27,585	-22,251	-3,181	1,260	-257	376,548	3,383	1,185	1,240	46,216	-434	12.00	-299	591	146
Buy Backs	135.7%	14,444	6,128	6,726	-	26,978	367	28,168	23,331	-	-	-	-	-	-	-	5,149	-	-	-	-	-

ALRM Income Statement

2023-12-31

Consolidated Statements of Operations - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2021

Revenue:

Total revenue

$ 881,682

$ 842,559

$ 748,969

Cost of revenue:

Total cost of revenue

^[1]

325,159

342,581

305,899

Operating expenses:

Sales and marketing

100,226

92,748

86,664

General and administrative

112,930

106,688

87,406

Research and development

245,114

218,635

177,713

Amortization and depreciation

31,424

30,870

29,715

Total operating expenses

489,694

448,941

381,498

Operating income

66,829

51,037

61,572

Interest expense

(3,429)

(3,144)

(15,956)

Interest income

29,801

8,759

587

Other income / (expense), net

4,624

(59)

(134)

Income before income taxes

97,825

56,593

46,069

Provision for / (benefit from) income taxes

17,485

962

(5,106)

Net income

80,340

55,631

51,175

Net loss attributable to redeemable noncontrolling interests

703

707

1,084

Net income attributable to common stockholders

$ 81,043

$ 56,338

$ 52,259

Net income per share:

Basic (in dollars per share)

$ 1.63

$ 1.13

$ 1.05

Diluted (in dollars per share)

$ 1.53

$ 1.07

$ 1.01

Weighted average common shares outstanding:

Basic (in shares)

49,818,448

49,926,236

49,869,857

Diluted (in shares)

54,625,434

54,932,757

51,919,902

SaaS and license revenue

Revenue:

Total revenue

$ 569,200

$ 520,377

$ 460,372

Cost of revenue:

Total cost of revenue

^[1]

85,898

73,897

66,758

Hardware and other revenue

Revenue:

Total revenue

312,482

322,182

288,597

Cost of revenue:

Total cost of revenue

^[1]

$ 239,261

$ 268,684

$ 239,141

[1]	Exclusive of amortization and depreciation shown in operating expenses below.

ALRM Balance Sheet

2023-12-31

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 696,983	$ 622,165
Accounts receivable, net of allowance for credit losses of $3,864 and $2,835, and net of allowance for product returns of $2,279 and $1,551, as of December 31, 2023 and 2022, respectively	130,626	124,283
Inventory	96,140	115,584
Other current assets, net	33,031	29,056
Total current assets	956,780	891,088
Property and equipment, net	54,164	57,172
Intangible assets, net	78,564	82,458
Goodwill	154,498	148,183
Deferred tax assets	131,815	84,185
Operating lease right-of-use assets	24,242	28,933
Other assets, net of allowance for credit losses of $5 and $2 as of December 31, 2023 and 2022, respectively	39,500	37,356
Total assets	1,439,563	1,329,375
Current liabilities:
Accounts payable, accrued expenses and other current liabilities	124,475	119,657
Accrued compensation	28,626	25,582
Deferred revenue	10,193	7,540
Operating lease liabilities	12,043	12,157
Total current liabilities	175,337	164,936
Deferred revenue	12,692	10,792
Convertible senior notes, net	493,515	490,370
Operating lease liabilities	20,468	27,380
Other liabilities	12,697	13,050
Total liabilities	714,709	706,528
Commitments and contingencies (Note 13)
Redeemable noncontrolling interests	36,308	23,988
Stockholders’ equity
Preferred stock, $0.001 par value, 10,000,000 shares authorized; no shares issued and outstanding as of December 31, 2023 and 2022	0	0
Common stock, $0.01 par value, 300,000,000 shares authorized; 51,888,838 and 50,985,454 shares issued; and 49,868,175 and 49,452,709 shares outstanding as of December 31, 2023 and 2022, respectively	519	510
Additional paid-in capital	531,734	497,199
Treasury stock, at cost; 2,020,663 and 1,532,745 shares as of December 31, 2023 and 2022, respectively	(111,291)	(83,993)
Accumulated other comprehensive income	1,398	0
Retained earnings	266,186	185,143
Total stockholders’ equity	688,546	598,859
Total liabilities, redeemable noncontrolling interests and stockholders’ equity	$ 1,439,563	$ 1,329,375

About Alarm.com Holdings Inc

Alarm.com Holdings, Inc. provides various Internet of Things (IoT) and solutions for residential, multi-family, small business, and enterprise commercial markets in North America and internationally. The company operates in two segments, Alarm.com and Other. It offers solutions to control and monitor security systems, as well as to IoT devices, including door locks, garage doors, thermostats, and video cameras; and video monitoring and analytics solutions, such as escalated events, video doorbells, intelligent integration, live streaming, secure cloud storage, and video alerts. The company also provides scenes, video analytics triggers, thermostat schedules, responsive savings, precision comfort, energy usage monitoring, places feature, demand response programs, whole home water safety, and solar monitoring solutions, as well as heating, ventilation, and air conditioning monitoring services. In addition, it offers commercial grade video, commercial video analytics, access control, enterprise dashboard and multi-site management, energy savings, protection for valuables and inventory, temperature monitoring, and daily safeguard solutions. Further, the company provides a permission-based online portal that provides account management, sales, marketing, training, and support tools; a unified interface that displays key operational and customer experience indicators, including technician performance, system reliability and customer engagement metrics; installation and support services; MobileTech Application and Remote Toolkit; video health reports; smart gateway; AI-powered enhancements to professional monitoring and false alarm reduction; Web services and business intelligence; sales, marketing, and training services; and home builder programs. Additionally, it offers electric utility grid and water management, indoor gunshot detection, and health and wellness and data-rich emergency response solutions. The company was founded in 2000 and is based in Tysons, Virginia.

CEO	Mr. Stephen S. Trundle
WEBSITE	alarm.com
INDUSTRY	Software - Apps
EMPLOYEES	1909

Alarm.com Holdings Inc Frequently Asked Questions

What is the ticker symbol for Alarm.com Holdings Inc? What does ALRM stand for in stocks?

ALRM is the stock ticker symbol of Alarm.com Holdings Inc. Every public company that trades on a stock exchange gets a ticker symbol.

What is the market capital of Alarm.com Holdings Inc (ALRM)?

As of Fri Apr 26 2024, market cap of Alarm.com Holdings Inc is 3.3 Billion. The market capitalization is calculated by multiplying the stock price with the number of shares outstanding.

What is the fair value of ALRM stock?

You can check ALRM's fair value in chart for subscribers.

What is the fair value of ALRM stock?

You can check ALRM's fair value in chart for subscribers. The fair value of Alarm.com Holdings Inc is provided for various growth and macro-economic scenarios from very pessimiatic to very optimistic assumptions. These fair values are estimates from Grufity's Fair Value model based on company's past performance. However, past performance of Alarm.com Holdings Inc is no guarantee of future performance. These fairvalue estimates should only be used as one of the inputs in your stock analysis. We provide model's historical fair value estimates for ALRM so that you know how good or bad the model has been in the past so you can discard it if needed. There are others that provide fair values of stocks such as wallmine, finbox, gurufocus and finviz. Most provide point in time estimates. We provide a history of our models fair value estimates so that you can get a sense of it's usefulness. Otherwise this data point is of little use.

Is Alarm.com Holdings Inc a good stock to buy?

The fair value guage provides a quick view whether ALRM is over valued or under valued. Whether Alarm.com Holdings Inc is cheap or expensive depends on the assumptions which impact Alarm.com Holdings Inc's fair value. We provide several scenarios of inflation and growth to encompass these range of assumptions for ALRM.

What is Alarm.com Holdings Inc's Price to Earnings (PE) and Price to sales (PS) ratio?

As of Fri Apr 26 2024, ALRM's PE ratio (Price to Earnings) is 41.04 and Price to Sales (PS) ratio is 3.74. The price to earnings and price to sales ratio are two most important valuation metrics for any company. PE ratio tell us the number of years of earnings investors are ready to pay for owning the company. Historically, S&P500 price to earnings ratio has fallen below 12 during periods of gloom and gone past 30 during periods of euphoria. ALRM PE ratio will change depending on the future growth rate expectations of investors.