---
title: "The Market Doesn't Like What It Sees From Alarum Technologies Ltd.'s (TLV:ALAR) Earnings Yet As Shares Tumble 41%"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/267624812.md"
description: "Alarum Technologies Ltd. (TLV:ALAR) shares have dropped 41% in the last month, with a 39% decline over the past year. Despite a low P/E ratio of 11.7x, indicating potential undervaluation, the company's earnings have deteriorated, contributing to the stock's decline. Investors are cautious due to the company's underperformance compared to the market's expected growth. The low P/E reflects skepticism about future earnings improvement."
datetime: "2025-11-27T04:10:42.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/267624812.md)
  - [en](https://longbridge.com/en/news/267624812.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/267624812.md)
---

# The Market Doesn't Like What It Sees From Alarum Technologies Ltd.'s (TLV:ALAR) Earnings Yet As Shares Tumble 41%

**Alarum Technologies Ltd.** (TLV:ALAR) shareholders that were waiting for something to happen have been dealt a blow with a 41% share price drop in the last month. Instead of being rewarded, shareholders who have already held through the last twelve months are now sitting on a 39% share price drop.

In spite of the heavy fall in price, Alarum Technologies may still be sending bullish signals at the moment with its price-to-earnings (or "P/E") ratio of 11.7x, since almost half of all companies in Israel have P/E ratios greater than 16x and even P/E's higher than 29x are not unusual. Although, it's not wise to just take the P/E at face value as there may be an explanation why it's limited.

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As an illustration, earnings have deteriorated at Alarum Technologies over the last year, which is not ideal at all. It might be that many expect the disappointing earnings performance to continue or accelerate, which has repressed the P/E. However, if this doesn't eventuate then existing shareholders may be feeling optimistic about the future direction of the share price.

See our latest analysis for Alarum Technologies

TASE:ALAR Price to Earnings Ratio vs Industry November 27th 2025

Want the full picture on earnings, revenue and cash flow for the company? Then our **free** report on Alarum Technologies will help you shine a light on its historical performance.

## What Are Growth Metrics Telling Us About The Low P/E?

There's an inherent assumption that a company should underperform the market for P/E ratios like Alarum Technologies' to be considered reasonable.

Taking a look back first, the company's earnings per share growth last year wasn't something to get excited about as it posted a disappointing decline of 2.4%. At least EPS has managed not to go completely backwards from three years ago in aggregate, thanks to the earlier period of growth. Accordingly, shareholders probably wouldn't have been overly satisfied with the unstable medium-term growth rates.

This is in contrast to the rest of the market, which is expected to grow by 12% over the next year, materially higher than the company's recent medium-term annualised growth rates.

In light of this, it's understandable that Alarum Technologies' P/E sits below the majority of other companies. It seems most investors are expecting to see the recent limited growth rates continue into the future and are only willing to pay a reduced amount for the stock.

## The Bottom Line On Alarum Technologies' P/E

Alarum Technologies' P/E has taken a tumble along with its share price. It's argued the price-to-earnings ratio is an inferior measure of value within certain industries, but it can be a powerful business sentiment indicator.

We've established that Alarum Technologies maintains its low P/E on the weakness of its recent three-year growth being lower than the wider market forecast, as expected. At this stage investors feel the potential for an improvement in earnings isn't great enough to justify a higher P/E ratio. If recent medium-term earnings trends continue, it's hard to see the share price rising strongly in the near future under these circumstances.

Before you take the next step, you should know about the **2 warning signs for Alarum Technologies** (1 is potentially serious!) that we have uncovered.

If these **risks are making you reconsider your opinion on Alarum Technologies**, explore our interactive list of high quality stocks to get an idea of what else is out there.

### Related Stocks

- [ALAR.US](https://longbridge.com/en/quote/ALAR.US.md)

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