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 38.28 is considered Fairly compared with the five-year average of 38.16. The fair price of Allegro Microsystems Inc (ALGM) is between 20.85 to 38.91 according to relative valuation methord.
Relative Value
Fair Zone
20.85-38.91
Current Price：28.82
Fair
38.18
PE
1Y
3Y
5Y
Trailing
Forward
24.55
EV/EBITDA
Allegro Microsystems Inc. (ALGM) has a current EV/EBITDA of 24.55. The 5-year average EV/EBITDA is 22.97. The thresholds are as follows: Strongly Undervalued below 9.04, Undervalued between 9.04 and 16.01, Fairly Valued between 29.94 and 16.01, Overvalued between 29.94 and 36.91, and Strongly Overvalued above 36.91. The current Forward EV/EBITDA of 24.55 falls within the Historic Trend Line -Fairly Valued range.
33.39
EV/EBIT
Allegro Microsystems Inc. (ALGM) has a current EV/EBIT of 33.39. The 5-year average EV/EBIT is 30.66. The thresholds are as follows: Strongly Undervalued below 9.16, Undervalued between 9.16 and 19.91, Fairly Valued between 41.41 and 19.91, Overvalued between 41.41 and 52.15, and Strongly Overvalued above 52.15. The current Forward EV/EBIT of 33.39 falls within the Historic Trend Line -Fairly Valued range.
5.66
PS
Allegro Microsystems Inc. (ALGM) has a current PS of 5.66. The 5-year average PS is 6.32. The thresholds are as follows: Strongly Undervalued below 3.93, Undervalued between 3.93 and 5.12, Fairly Valued between 7.51 and 5.12, Overvalued between 7.51 and 8.70, and Strongly Overvalued above 8.70. The current Forward PS of 5.66 falls within the Historic Trend Line -Fairly Valued range.
36.34
P/OCF
Allegro Microsystems Inc. (ALGM) has a current P/OCF of 36.34. The 5-year average P/OCF is 30.52. The thresholds are as follows: Strongly Undervalued below 9.71, Undervalued between 9.71 and 20.12, Fairly Valued between 40.92 and 20.12, Overvalued between 40.92 and 51.32, and Strongly Overvalued above 51.32. The current Forward P/OCF of 36.34 falls within the Historic Trend Line -Fairly Valued range.
59.79
P/FCF
Allegro Microsystems Inc. (ALGM) has a current P/FCF of 59.79. The 5-year average P/FCF is 50.58. The thresholds are as follows: Strongly Undervalued below 0.40, Undervalued between 0.40 and 25.49, Fairly Valued between 75.68 and 25.49, Overvalued between 75.68 and 100.77, and Strongly Overvalued above 100.77. The current Forward P/FCF of 59.79 falls within the Historic Trend Line -Fairly Valued range.
Allegro Microsystems Inc (ALGM) has a current Price-to-Book (P/B) ratio of 5.67. Compared to its 3-year average P/B ratio of 5.81 , the current P/B ratio is approximately -2.52% higher. Relative to its 5-year average P/B ratio of 6.54, the current P/B ratio is about -13.30% higher. Allegro Microsystems Inc (ALGM) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 1.19%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 1.40% , the current FCF yield is about -100.00% lower.
5.65
P/B
Median3y
5.81
Median5y
6.54
1.09
FCF Yield
Median3y
1.19
Median5y
1.40
Competitors Valuation Multiple
The average P/S ratio for ALGM's competitors is , providing a benchmark for relative valuation. Allegro Microsystems Inc Corp (ALGM) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 14.36%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of ALGM increased by 31.84% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -78.30 to -183.69.
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.
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