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ADT, ADT Inc.

Commercial Services & Supplies diversified CyclicalSerial acquirer

A diversified business; where the profit really comes from, and whether it is earned or bought, is what the segment detail settles.

Latest annual: FY2025 10-K

ADT · ADT Inc.

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$5.1B

+4.7% YoY · −1% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $5.1B 5-yr avg $4.7B

Operating margin 25.6% 5-yr avg 18.5%

ROIC 8% 5-yr avg 5%

Owner-earnings margin 37% 5-yr avg 35%

Free cash flow margin 37% 5-yr avg 35%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

Situation: Cyclical. Margins collapse and recover repeatedly across the record; a single year, good or bad, misstates the through-cycle earning power. Serial acquirer. Goodwill and acquired intangibles are 61% of assets, with meaningful acquisition spending in 5 of the record's 10 years; much of what this business is was bought, at prices the record carries.
What moves the needle: Operating margin has run about 6.1% through the cycle, a thin margin, where volume, cost discipline and the price it gets all bear on the result. The operating margin has swung widely — from −7.8% to 26% over the years — so the through-cycle figure carries more than any single year, and the worst year more than the best. On its own account, the filing leans hardest on customer concentration, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has rarely cleared the cost of capital (median 1%, above 15% in 0 of 10 years). By owner earnings: roughly 34% of revenue reaches owners as cash, consistently. The cycle and the balance sheet decide this one; the worst year tells more than the median, and the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

The record

Ten years of arithmetic, read across the cycle.

The record, 2016–2025

realized figures from each filing · older years to the left

2016’16	2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMMar 2026
											Income statement
$2.9B	$4.3B	$4.6B	$5.1B	$5.3B	$4.2B	$4.4B	$4.7B	$4.9B	$5.1B	$5.1B	RevenueRevenue
29%	28%	27%	27%	32%	37%	31%	30%	31%	29%	29%	SG&A / revenueSG&A/rev
($229M)	$282M	$278M	$196M	$41M	$10M	$725M	$1.2B	$1.2B	$1.3B	$1.3B	Operating incomeOp. inc.
−7.8%	6.5%	6.1%	3.8%	0.8%	0.2%	16.5%	25.3%	24.7%	25.5%	25.6%	Operating marginOp. mgn
($537M)	$343M	($609M)	($424M)	($632M)	($341M)	$133M	$463M	$501M	$596M	$624M	Net incomeNet inc.
—	—	—	—	—	—	40%	26%	28%	28%	28%	Effective tax rateTax rate
											Cash flow & returns
$618M	$1.6B	$1.8B	$1.9B	$1.4B	$1.6B	$1.9B	$1.7B	$1.9B	$1.9B	$2.1B	Operating cash flowOp. cash
$1.2B	$1.9B	$1.9B	$2.0B	$1.9B	$1.8B	$1.6B	$1.3B	$1.3B	$1.4B	$1.4B	DepreciationDeprec.
($79M)	($614M)	$466M	$308M	$85M	$151M	$155M	($141M)	$41M	($79M)	$58M	Working capital & otherWC & other
$78M	$131M	$127M	$159M	$157M	$168M	$177M	$176M	$164M	$176M	$179M	CapexCapex
2.7%	3.0%	2.8%	3.1%	3.0%	4.0%	4.0%	3.8%	3.3%	3.4%	3.5%	Capex / revenueCapex/rev
$539M	$1.5B	$1.7B	$1.7B	$1.2B	$1.5B	$1.7B	$1.5B	$1.7B	$1.7B	$1.9B	Owner earningsOwner earn.
18.3%	33.9%	36.2%	33.4%	22.8%	35.3%	39.1%	31.8%	35.1%	33.3%	36.5%	Owner earnings marginOE mgn
$539M	$1.5B	$1.7B	$1.7B	$1.2B	$1.5B	$1.7B	$1.5B	$1.7B	$1.7B	$1.9B	Free cash flowFCF
18.3%	33.9%	36.2%	33.4%	22.8%	35.3%	39.1%	31.8%	35.1%	33.3%	36.5%	Free cash flow marginFCF mgn
$8.5B	$64M	$353M	$109M	$225M	$164M	$13M	$0	—	—	$0	AcquisitionsAcquis.
$0	$750M	$79M	$565M	$109M	$116M	$127M	$129M	$182M	$187M	$183M	Dividends paidDiv. paid
—	$0	$0	$150M	$4K	$0	$1.2B	$0	$241M	$607M	—	BuybacksBuybacks
-5%	1%	2%	1%	0%	0%	3%	8%	8%	8%	8%	ROICROIC
-14%	10%	-14%	-13%	-21%	-10%	4%	12%	13%	16%	16%	Return on equityROE
−14%	−12%	−16%	−31%	−24%	−14%	0%	9%	8%	11%	12%	Retained to equityRetained/eq
											Balance sheet
$76M	$123M	$363M	$49M	$205M	$24M	$257M	$15M	$96M	$81M	$119M	Cash & investmentsCash+inv
—	$149M	$246M	$287M	$336M	$442M	$335M	$370M	$394M	$385M	$368M	ReceivablesReceiv.
—	$86M	$89M	$104M	$175M	$277M	$225M	$201M	$197M	$202M	$189M	InventoryInvent.
—	$188M	$221M	$242M	$322M	$475M	$418M	$277M	$154M	$107M	$113M	Accounts payablePayables
—	$47M	$114M	$150M	$189M	$245M	$142M	$294M	$437M	$480M	$444M	Operating working capitalOper. WC
—	$456M	$854M	$625M	$967M	$993M	$1.7B	$1.0B	$1.0B	$946M	$899M	Current assetsCur. assets
—	$896M	$1.0B	$1.1B	$1.3B	$1.7B	$2.7B	$1.5B	$1.3B	$1.0B	$1.1B	Current liabilitiesCur. liab.
—	0.5×	0.8×	0.6×	0.7×	0.6×	0.6×	0.7×	0.8×	0.9×	0.8×	Current ratioCurr. ratio
$5.0B	$5.1B	$5.1B	$5.0B	$5.2B	$5.6B	$5.4B	$4.9B	$4.9B	$4.9B	$5.0B	GoodwillGoodwill
—	$17.0B	$17.2B	$16.1B	$16.1B	$16.9B	$17.8B	$16.0B	$16.1B	$15.8B	$15.9B	Total assetsAssets
—	$10.2B	$10.3B	$10.0B	$9.8B	$9.7B	$9.8B	$7.8B	$7.7B	$7.7B	$7.7B	Total debtDebt
—	$10.0B	$9.9B	$9.9B	$9.6B	$9.7B	$9.5B	$7.8B	$7.6B	$7.6B	$7.5B	Net debt / (cash)Net debt
$3.8B	$3.4B	$4.2B	$3.2B	$3.0B	$3.2B	$3.4B	$3.8B	$3.8B	$3.8B	$3.8B	Shareholders’ equityEquity
—	—	$88M	$45M	—	—	$201M	$511M	$24M	$15M	$15M	Goodwill written downGW imp.
											Per share
641M	641M	748M	747M	771M	—	—	—	—	—	911M	Shares out (diluted)Shares
$4.60	$6.73	$6.13	$6.86	$6.89	—	—	—	—	—	$5.64	Revenue / shareRev/sh
$-0.84	$0.53	$-0.81	$-0.57	$-0.82	—	—	—	—	—	$0.68	EPS (diluted)EPS
$0.84	$2.28	$2.22	$2.29	$1.57	—	—	—	—	—	$2.06	Owner earnings / shareOE/sh
$0.84	$2.28	$2.22	$2.29	$1.57	—	—	—	—	—	$2.06	Free cash flow / shareFCF/sh
$0.00	$1.17	$0.11	$0.76	$0.14	—	—	—	—	—	$0.20	Dividends / shareDiv/sh
$0.12	$0.20	$0.17	$0.21	$0.20	—	—	—	—	—	$0.20	Cap. spending / shareCapex/sh
$5.94	$5.36	$5.65	$4.26	$3.94	—	—	—	—	—	$4.17	Book value / shareBVPS

Per-share growththe realized rate an owner's share compounded

	9-yr	5-yr
Revenue / share	+10.6%/yr (4-yr)	+10.6%/yr (4-yr)
Owner earnings / share	+16.9%/yr (4-yr)	+16.9%/yr (4-yr)
Capital spending / share	+13.6%/yr (4-yr)	+13.6%/yr (4-yr)
Book value / share	−9.7%/yr (4-yr)	−9.7%/yr (4-yr)

The record, charted

FY2016–2025

Each measure over its full record; the current point and the worst year marked.

Share count

771Mpeak FY2020

ROIC

8%low FY2016

Net debt ÷ owner earnings

4.5×peak FY2020

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$1.7Bowner earningsvs.$596Mnet incomelow FY2016

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetainedBeyond op. cash

Each year's outlays against its operating cash: the mix, and how it drifts. The hatched cap is spending beyond that year's operating cash — financed from the balance sheet or borrowing, not operations.

FY2016FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business turned $596M of profit into $1.7B of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.

Reported net income$596M

Owner earnings$1.7B · 33% of revenue

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	$596M	$501M	$463M	$133M	($341M)
Depreciation & amortizationnon-cash charge added back	+$1.4B	+$1.3B	+$1.3B	+$1.6B	+$1.8B
Working capital & othertiming of cash in and out, other non-cash items	−$79M	+$41M	−$141M	+$155M	+$151M
Cash from operations	$1.9B	$1.9B	$1.7B	$1.9B	$1.6B
Capital expenditurecash put back in to keep running and to grow	−$176M	−$164M	−$176M	−$177M	−$168M
Owner earnings	$1.7B	$1.7B	$1.5B	$1.7B	$1.5B
Owner-earnings marginowner earnings ÷ revenue	33%	35%	32%	39%	35%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position .

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? —

Interest expense not tagged in the data

What this means
No usable interest-expense line was tagged in the filing data, but the balance sheet carries real net debt — so the interest burden here is unknown, not absent. Read the debt on the net-debt check below.
How heavy is the debt, net of cash? $7.6B · 5.8× operating profit

Heavy net debt

Cash $81M − debt $7.7B

What this means
Netting $81M of cash and short-term investments against $7.7B of debt leaves $7.6B owed, about 5.8× a year's operating profit (5.9× on the gross debt, before the cash). Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? —

Not enough data

What this means
The filing data didn't include the inputs for this check.

Is it a good business?

Return on invested capital 1%

Below average through the cycle

10-yr median, range -5%–8%; 8% latest = NOPAT $941M ÷ invested capital $11.4B

Industry peers: median 16%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 10 years (it ran 8% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 33%

High through the cycle

10-yr median margin, range 18%–39%; latest $1.7B = operating cash $1.9B − maintenance capex $176M

Industry peers: median 11%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 33% of revenue this year, a 33% median across 10 years.
Are earnings backed by cash? 3.16×

Cash-backed

Cash from ops $1.9B ÷ net income $596M

In the filing’s words The filing leans on adjusted, non-GAAP earnings, but the GAAP profit is itself cash-backed — the adjustments are not papering over a cash shortfall here.

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? 46%

Returns about half

Dividends + buybacks $794M ÷ Owner Earnings $1.7B

What this means
Of $1.7B Owner Earnings, $794M (46%) went back to shareholders, $187M dividends, $607M buybacks. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.
Investing or harvesting? 0.13×

Harvesting

Capex $176M ÷ depreciation $1.4B

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 1 of 5 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Pass

Revenue ≥ $2B · $5.1B

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Miss

Current ratio ≥ 2× · 0.93×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Miss

Debt ≤ working capital · $7.7B vs ($67M) WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Miss

A profit every year (10-yr record) · 5 loss years

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Near

Uninterrupted dividends · 9 of 10 yrs

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth —

Earnings +33% over the record · —

What this means
Earnings were negative early in the record, a growth rate isn't meaningful.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $0.66/share (latest year $0.75), the averaged base the calculator's gate runs on, and book value is $4.77/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2016–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 5 of 10

What this means
Lost money in 5 year(s), look at what happened there before trusting the average.
Return on capital ≥ 15% 0 of 9 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin 2% → 25% (3-yr avg ends)

In the filing’s words The record and the words agree: the margin widened and the filing attributes the gain to its own pricing, not volume alone.

What this means
Through the cycle the operating margin widened — about 2% early to 25% lately, median 6% — pricing power intact or improving.
Reinvestment, incremental ROIC returns capital

What this means
The capital base barely grew: this business returns cash through dividends and buybacks rather than reinvesting. Judge it on the cash returned, not on compounding.
Owner earnings growth +6%/yr

What this means
Owner earnings grew about 6% a year over the record.
Worst year 2016 · −7.8% op. margin

What this means
Operations went underwater in 2016, understand why before trusting the good years.
Share count +2.1%/yr

What this means
The share count is rising, dilution works against you on a per-share basis.
Dividend record paid

What this means
Paid a dividend in 9 of the years on record.
How management talks about it Owner’s terms

What this means
The record and the register agree: capital is compounding and the filing reasons in an owner’s terms — per-share value, return on capital, the long term — not a promoter’s.

Does AI threaten the moat?

Moderate contestability

AI is likely to reshape costs and some products here without clearly contesting or sparing the core moat; how the company itself frames it is the tell.

In its own filing A competitive risk, new this year

Its FY2025 10-K names artificial intelligence as a competitive threat, in language that was not in the prior year's filing.

“In addition, competitors may more effectively use AI to better serve customers, develop new or enhanced products or services, or improve internal processes, or third parties may otherwise deploy AI solutions in a manner that reduces customer demand for our products and services.”

The question is whether a moat the record shows as durable outlasts a technology that lowers the cost of part of what the firm sells. The durability is read in the record above, the filing's own framing of AI beside it; the industry label decides nothing on its own.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$899M

Cash & short-term investments$119M
Receivables$368M
Inventory$189M
Other current assets$223M

Current liabilities$1.1B

Debt due within a year$309M
Accounts payable$113M
Other current liabilities$644M

Current ratio0.84×all current assets ÷ what's due · Graham looked for 2×

Quick ratio0.67×stricter: inventory excluded

Cash ratio0.11×strictest: cash alone against what's due

Working capital($167M)the cushion left after near-term bills

Debt due this year vs. cash$309M due · $119M cash cash alone won't cover the maturities; it leans on refinancing or operating cash · both figures from the Mar 31, 2026 balance sheet

Revenue, latest quarter vs. a year ago+0.9%the freshest read on whether the business is still growing

Current ratio, recent quarters0.7× → 0.8×

Deeper floors

Tangible book value($6.0B)equity stripped of goodwill & intangibles

Net current asset value($11.2B)Graham's net-net: current assets less all liabilities

Debt incl. operating leases$7.8B$99M of it operating leases

Deferred revenue$2.3Bcustomer cash collected before delivery; operating float

From the company's latest filing.

How the cash was used, 2016–2025

Over the record, the business generated $16.2B of operating cash; how management split it reads as a balanced allocator, splitting cash between the business, owners, and the balance sheet.

Reinvested$1.5B · 9%
Dividends$2.2B · 14%
Buybacks$2.2B · 14%
Retained (debt / cash)$10.2B · 63%

Returned to owners$4.4B
30% of the owner earnings the business produced over the span, $2.2B as dividends and $2.2B as buybacks.
Average price paid for buybacks$6.24
Across the years where the filing reports a share count, 24M shares were bought for $150M, about $6.24 each.
Net change in share count42.2%
The diluted count rose from 641M to 911M: issuance (stock pay, deals) outran any buybacks, so owners were diluted on net.
Dividend record$0.14/sh
Paid in 9 of the years on record. It was cut at least once along the way.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Acquisitions & goodwill

from the balance sheet & the 10-year cash-flow record

Goodwill grows only when a company acquires and falls only when it concedes it overpaid. The size of that bet, the cash put into buying rather than building, and how much has already been written off.

Goodwill & intangibles$9.7B61% of all assets; the premium carried on the balance sheet for businesses acquired

Against book equityexceeds itgoodwill alone is larger than the company’s entire book equity; stripped of the acquisition premium, there is no net book worth

Cash spent acquiring$9.4Bover 10 years buying other businesses, against $1.5B of capital spent building

$885M written down across 6 years (2018, 2019, 2022, 2023, 2024, 2025): goodwill the company has already conceded it overpaid for, charged against earnings. A write-down costs no cash (the cash went out when the deal was signed), but it is management marking its own past judgment to market.

Goodwill, acquired intangibles and equity from the latest balance sheet; acquisition spend and write-downs summed across the 10-year record, from the company's own filings.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Chief executive	Pay, as filed	“Actually paid”	Owner earnings
2021	James D. DeVries.	$7.5M	$9.8M	$1.5B
2022	James D. DeVries.	$8.8M	$10.6M	$1.7B
2023	James D. DeVries.	$8.8M	$1.2M	$1.5B
2024	James D. DeVries.	$16.1M	$16.5M	$1.7B
2025	James D. DeVries.	$14.9M	$15.3M	$1.7B

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Insider ownership3.2%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.

Inverting the record

Invert: instead of why ADT Inc. is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2016–2025.

2 of the 3 tests turned up something to look into; the other 1 came back clean.

Look hereDid the share count rise anyway?42.2%
Diluted shares grew 42.2% over 2016–2025, even as the company spent $2.2B on buybacks. The repurchases were outrun by issuance — to staff, in a raise, or in a deal — and the filing says which; owners' slice still shrank. Read the buyback line beside this one, not on its own.
Look hereAre "one-time" charges a yearly habit?7 of 10 years
Management took an impairment or write-down in 7 of the last 10 years, $904M in all. Taken across the majority of the record, the "one-time" label is wearing thin — ask whether these are past deals coming due rather than genuinely isolated events. Read it beside the goodwill the company still carries.

And these came back clean

Is it less profitable than it was?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

What an owner would ask, FY2025

read the 10-K →

Which reported numbers are a judgment call?
Management names Revenue recognition, Income taxes, Acquisitions, Contingencies as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Commercial Services & Supplies

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
BRBroadridge Financial Solutions Inc.	$6.9B	28%	14.4%	18%	13%
LYFTLyft Inc.	$5.9B	38%	-38.4%	-56%	—
MMSMaximus	$5.4B	23%	9.7%	16%	8%
ADTADT Inc.	$5.1B	—	6.3%	1%	34%
TNETTriNet Group Inc.	$5.0B	—	7.1%	38%	7%
RBARB Global Inc.	$4.6B	—	16.4%	8%	17%
WUWestern Union	$3.9B	39%	19.6%	42%	15%
ADVAdvantage Solutions Inc.	$3.5B	—	-1.2%	-8%	3%
Group median	—	—	8.4%	12%	13%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what ADT Inc. has delivered.

Today’s price $

Through the cycle, ADT Inc. earns about $1.7B on its 33.7% median owner-earnings margin. This year’s 33.3% margin runs in line with that. Normalize, below, values the price on that through-cycle figure rather than the latest year.

Base Normalize · through-cycle ($1.7B) Net of stock comp

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’21→’25+2%/yr

Owner-earnings growth · ’16→’25+6%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Owner earnings $1.9B on 791M shares outstanding (a weighted cover-text, the only count this filer tags); net debt $7.5B. The if-converted diluted count is 911M, 15% above the shares outstanding: the dilution overhang (convertibles, options) a buyer inherits. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh ADT against another business →

Cite: Owner Scorecard, "ADT Inc. (ADT), the owner's record," https://ownerscorecard.com/c/ADT, data as of 2026-07-09.

Manual order: ← ADSK its page in the Manual ADTN →

Industry order: ← ACCO the Commercial Services & Supplies chapter ADV →