DCF Tool


Alarm.com Holdings Inc – Software Publishers
alarm.com is the leading platform solution for the connected home and business. millions of people depend on alarm.com's technology to monitor and control their property from anywhere. centered on security and remote monitoring, our platform addresses a wide range of market needs and enables application-based control for a growing variety of internet of things (iot) devices. our security, video monitoring, intelligent automation and energy management solutions are available through our network of thousands of professional service providers in north america and around the globe. alarm.com's common stock is traded on the nasdaq under the ticker symbol alrm. alarm.com earned the top workplace™ award for its employee culture and the meaningful work we do every day to develop and bring to market new technology that will make millions of people safer and help them use energy more efficiently. we’re seeking those who are passionate about creating change through technology and who want to make
Analysis Results
Intrinsic Value $57.87
Latest Price $62.04
Relative Value 7% overvalued
Thoughts on this result? Let us know.
Cash Flow (Millions)
Analysis Parameters
New Ticker
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 17.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 17.3%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2023 125 115
2024 146 124
2025 171 134
2026 201 145
2027 236 156
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 3640 million. This corresponds to a present value of 2210 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 673 million. Adding in the terminal value gives a total present value of 2890 million.

There are presently 49.9 million outstanding shares, so the intrinsic value per share is 57.87.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 891,088,000
Current Cash 622,165,000
Current Liabilities 164,936,000
Current Debt 0
Non-Cash Working Capital (NCWC) 103,987,000
Change in NCWC 26,327,000
EBIT 51,037,000
Tax Provision 962,000
Depreciation and Amortization 42,728,000
Capital Expenditure -28,640,000
Unlevered Free Cash Flow 90,584,444
Current Assets 917,620,000
Current Cash 710,621,000
Current Liabilities 129,339,000
Current Debt 0
Non-Cash Working Capital (NCWC) 77,660,000
Change in NCWC 23,949,000
EBIT 61,572,000
Tax Provision -5,106,000
Depreciation and Amortization 40,647,000
Capital Expenditure -15,424,000
Unlevered Free Cash Flow 110,744,000
Current Assets 397,414,000
Current Cash 253,459,000
Current Liabilities 90,244,000
Current Debt 0
Non-Cash Working Capital (NCWC) 53,711,000
Change in NCWC 5,461,000
EBIT 56,298,000
Tax Provision 3,500,000
Depreciation and Amortization 37,290,000
Capital Expenditure -16,141,000
Unlevered Free Cash Flow 80,449,878
Current Assets 243,674,000
Current Cash 119,629,000
Current Liabilities 75,795,000
Current Debt 0
Non-Cash Working Capital (NCWC) 48,250,000
Change in NCWC 41,518,000
EBIT 50,413,000
Tax Provision 5,566,000
Depreciation and Amortization 22,834,000
Capital Expenditure -19,324,000
Unlevered Free Cash Flow 90,676,690
Current Assets 228,063,000
Current Cash 146,061,000
Current Liabilities 75,270,000
Current Debt 0
Non-Cash Working Capital (NCWC) 6,732,000
Change in NCWC -16,372,000
EBIT 12,202,000
Tax Provision -9,825,000
Depreciation and Amortization 22,621,000
Capital Expenditure -11,015,000
Unlevered Free Cash Flow 7,436,000
Current Assets 163,936,000
Current Cash 96,329,000
Current Liabilities 44,503,000
Current Debt 0
Non-Cash Working Capital (NCWC) 23,104,000
Change in NCWC 13,253,000
EBIT 33,374,000
Tax Provision 2,990,000
Depreciation and Amortization 18,699,000
Capital Expenditure -10,464,000
Unlevered Free Cash Flow 51,766,926
Current Assets 190,184,000
Current Cash 140,634,000
Current Liabilities 39,699,000
Current Debt 0
Non-Cash Working Capital (NCWC) 9,851,000
Change in NCWC 6,238,000
EBIT 14,058,000
Tax Provision 4,227,000
Depreciation and Amortization 7,276,000
Capital Expenditure -9,055,000
Unlevered Free Cash Flow 14,384,939

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