- It didn’t take long for Alarm.com to shrug off the news of Google’s Nest and ADT partnership.
- The company is having a strong fiscal year and has recently raised its outlook for Q4 and its fiscal-year end.
- From a valuation point of view, we believe the company is trading in overvalued territory.
- At 45x earnings, growth expectations embedded in the stock price are high. A slowdown in the growth rate could put a serious dent in the market’s expectations, thus re-rating ALRM at a lower multiple of earnings.
For further details see:
Alarm.com: Set Your Alarm If The Price Drops