TacticScaleWhat ADT Does & How It Makes Money (ADT)
Updated October 2026 · reflects ADT's latest reported financials
U.S. provider of monitored home and small business security systems. ADT earns money by installing security and smart home equipment and charging customers for ongoing professional monitoring and services.
How ADT makes money
ADT earns money by installing security and smart home equipment and charging customers for ongoing professional monitoring and services. It also earns revenue from maintenance, upgrades, and personal emergency response services, and reaches customers through direct sales, retail and e-commerce, and a network of authorized dealers.
What ADT does
ADT Inc. is one of the oldest names in U.S. security. It was founded in 1874 and is based in Boca Raton, Florida. The company provides intrusion, fire, and life-safety alarm systems, smart cameras, and home automation to homeowners, renters, and small business owners. These systems are backed by ADT's own monitoring centers and outsourced monitoring, plus field service and call centers. It sells under the ADT, ADT Pulse, and ADT+ brands and offers both professionally installed and DIY setups. Beyond traditional alarms, ADT has built out its digital offering. The ADT+ app lets customers control their systems remotely, and Trusted Neighbor lets homeowners give others access to their homes with approved credentials. It also sells personal emergency response products with fall detection and on-the-go location tracking. ADT reaches customers through many channels: door-to-door sales, referrals, lead generation partners, retail and e-commerce, its own field offices, and independent and authorized dealers.
Products & services
- ADT+ app and platform
- ADT Pulse
- Professional security monitoring
- Smart security cameras and home automation
- Trusted Neighbor
- Personal emergency response systems
What is ADT worth?
On an owner-earnings DCF, ADT's most-likely value is about $19 versus a recent price near $6 (189% below fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$13) with a margin of safety — so the honest verdict here is “Deeply discounted.” Fair value earns its keep only at the extremes, not in the wide middle.
On the financials alone, $6 is below even the no-growth floor ($13); the market's discount — expectations and sentiment beyond the numbers — is pricing in ≈ -11.3%/yr. A bargain only if that pessimism is overdone.
⚠ High leverage — net debt is 7.0× annual cash flow. Net debt is subtracted from this fair value, but refinancing at higher rates, principal timing, and share dilution aren’t modeled — the equity can be worth far less if cash flow weakens.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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