ALGM PE Ratio & Valuation,Is ALGM Overvalued

ALGM Relative Valuation

ALGM's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, ALGM is overvalued; if below, it's undervalued.

Historical Valuation

Allegro Microsystems Inc (ALGM) is now in the Fair zone, suggesting that its current forward PE ratio of 35.91 is considered Fairly compared with the five-year average of 38.13. The fair price of Allegro Microsystems Inc (ALGM) is between 20.27 to 38.36 according to relative valuation methord.

Relative Value

Fair Zone

20.27-38.36

Current Price：27.11

Fair

35.91

23.08

EV/EBITDA

Allegro Microsystems Inc. (ALGM) has a current EV/EBITDA of 23.08. The 5-year average EV/EBITDA is 22.97. The thresholds are as follows: Strongly Undervalued below 9.04, Undervalued between 9.04 and 16.00, Fairly Valued between 29.93 and 16.00, Overvalued between 29.93 and 36.89, and Strongly Overvalued above 36.89. The current Forward EV/EBITDA of 23.08 falls within the Historic Trend Line -Fairly Valued range.

31.40

EV/EBIT

Allegro Microsystems Inc. (ALGM) has a current EV/EBIT of 31.40. The 5-year average EV/EBIT is 30.65. The thresholds are as follows: Strongly Undervalued below 9.17, Undervalued between 9.17 and 19.91, Fairly Valued between 41.39 and 19.91, Overvalued between 41.39 and 52.13, and Strongly Overvalued above 52.13. The current Forward EV/EBIT of 31.40 falls within the Historic Trend Line -Fairly Valued range.

5.31

Allegro Microsystems Inc. (ALGM) has a current PS of 5.31. The 5-year average PS is 6.31. The thresholds are as follows: Strongly Undervalued below 3.93, Undervalued between 3.93 and 5.12, Fairly Valued between 7.50 and 5.12, Overvalued between 7.50 and 8.69, and Strongly Overvalued above 8.69. The current Forward PS of 5.31 falls within the Historic Trend Line -Fairly Valued range.

34.09

P/OCF

Allegro Microsystems Inc. (ALGM) has a current P/OCF of 34.09. The 5-year average P/OCF is 30.40. The thresholds are as follows: Strongly Undervalued below 10.05, Undervalued between 10.05 and 20.22, Fairly Valued between 40.57 and 20.22, Overvalued between 40.57 and 50.74, and Strongly Overvalued above 50.74. The current Forward P/OCF of 34.09 falls within the Historic Trend Line -Fairly Valued range.

56.09

P/FCF

Allegro Microsystems Inc. (ALGM) has a current P/FCF of 56.09. The 5-year average P/FCF is 50.42. The thresholds are as follows: Strongly Undervalued below 0.62, Undervalued between 0.62 and 25.52, Fairly Valued between 75.31 and 25.52, Overvalued between 75.31 and 100.21, and Strongly Overvalued above 100.21. The current Forward P/FCF of 56.09 falls within the Historic Trend Line -Fairly Valued range.

Allegro Microsystems Inc (ALGM) has a current Price-to-Book (P/B) ratio of 5.32. Compared to its 3-year average P/B ratio of 5.79 , the current P/B ratio is approximately -8.24% higher. Relative to its 5-year average P/B ratio of 6.56, the current P/B ratio is about -18.98% higher. Allegro Microsystems Inc (ALGM) has a Forward Free Cash Flow (FCF) yield of approximately 1.16%. Compared to its 3-year average FCF yield of 1.18%, the current FCF yield is approximately -2.08% lower. Relative to its 5-year average FCF yield of 1.40% , the current FCF yield is about -17.35% lower.

5.32

P/B

Median3y

5.79

Median5y

6.56

1.16

FCF Yield

Median3y

1.18

Median5y

1.40

Competitors Valuation Multiple

The average P/S ratio for ALGM's competitors is 5.17, providing a benchmark for relative valuation. Allegro Microsystems Inc Corp (ALGM) exhibits a P/S ratio of 5.31, which is 2.74% above the industry average. Given its robust revenue growth of 14.36%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of ALGM increased by 24.02% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -76.20 to -172.79.

The secondary factor is the Revenue Growth, contributed 14.36%to the performance.

Overall, the performance of ALGM in the past 1 year is driven by P/E Change. Which is more unsustainable.

14.36%

187.39M → 214.29M

Revenue Growth

-117.11%

-17.94 → 3.07

Margin Expansion

126.77%

-76.20 → -172.79

P/E Change

24.02%

21.86 → 27.11

Mkt Cap Growth

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Frequently Asked Questions

Is Allegro Microsystems Inc (ALGM) currently overvalued or undervalued?

What is Allegro Microsystems Inc (ALGM) fair value?

ALGM's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Allegro Microsystems Inc (ALGM) is between 20.27 to 38.36 according to relative valuation methord.

How does ALGM's valuation metrics compare to the industry average?

What is the current P/B ratio for Allegro Microsystems Inc (ALGM) as of Dec 15 2025?

As of Dec 15 2025, Allegro Microsystems Inc (ALGM) has a P/B ratio of 5.32. This indicates that the market values ALGM at 5.32 times its book value.

What is the current FCF Yield for Allegro Microsystems Inc (ALGM) as of Dec 15 2025?

As of Dec 15 2025, Allegro Microsystems Inc (ALGM) has a FCF Yield of 1.16%. This means that for every dollar of Allegro Microsystems Inc’s market capitalization, the company generates 1.16 cents in free cash flow.

What is the current Forward P/E ratio for Allegro Microsystems Inc (ALGM) as of Dec 15 2025?

As of Dec 15 2025, Allegro Microsystems Inc (ALGM) has a Forward P/E ratio of 35.91. This means the market is willing to pay $35.91 for every dollar of Allegro Microsystems Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Allegro Microsystems Inc (ALGM) as of Dec 15 2025?

As of Dec 15 2025, Allegro Microsystems Inc (ALGM) has a Forward P/S ratio of 5.31. This means the market is valuing ALGM at $5.31 for every dollar of expected revenue over the next 12 months.

ALGM Valuation