ALGM Valuation

Allegro Microsystems Inc

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26.980

-0.23(-0.845%)1D

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 35.74 is considered Fairly compared with the five-year average of 38.35. The fair price of Allegro Microsystems Inc (ALGM) is between 21.22 to 39.37 according to relative valuation methord.

Relative Value

Fair Zone

21.22-39.37

Current Price：26.98

Fair

35.74

Trailing

Forward

22.98

EV/EBITDA

Allegro Microsystems Inc. (ALGM) has a current EV/EBITDA of 22.98. The 5-year average EV/EBITDA is 22.98. The thresholds are as follows: Strongly Undervalued below 8.94, Undervalued between 8.94 and 15.96, Fairly Valued between 30.00 and 15.96, Overvalued between 30.00 and 37.02, and Strongly Overvalued above 37.02. The current Forward EV/EBITDA of 22.98 falls within the Historic Trend Line -Fairly Valued range.

31.25

EV/EBIT

Allegro Microsystems Inc. (ALGM) has a current EV/EBIT of 31.25. The 5-year average EV/EBIT is 30.67. The thresholds are as follows: Strongly Undervalued below 8.99, Undervalued between 8.99 and 19.83, Fairly Valued between 41.50 and 19.83, Overvalued between 41.50 and 52.34, and Strongly Overvalued above 52.34. The current Forward EV/EBIT of 31.25 falls within the Historic Trend Line -Fairly Valued range.

26.98

Allegro Microsystems Inc. (ALGM) has a current PS of 26.98. The 5-year average PS is 6.53. The thresholds are as follows: Strongly Undervalued below 1.82, Undervalued between 1.82 and 4.18, Fairly Valued between 8.89 and 4.18, Overvalued between 8.89 and 11.25, and Strongly Overvalued above 11.25. The current Forward PS of 26.98 falls within the Strongly Overvalued range.

35.14

P/OCF

Allegro Microsystems Inc. (ALGM) has a current P/OCF of 35.14. The 5-year average P/OCF is 30.78. The thresholds are as follows: Strongly Undervalued below 9.02, Undervalued between 9.02 and 19.90, Fairly Valued between 41.66 and 19.90, Overvalued between 41.66 and 52.54, and Strongly Overvalued above 52.54. The current Forward P/OCF of 35.14 falls within the Historic Trend Line -Fairly Valued range.

55.82

P/FCF

Allegro Microsystems Inc. (ALGM) has a current P/FCF of 55.82. The 5-year average P/FCF is 50.95. The thresholds are as follows: Strongly Undervalued below -0.26, Undervalued between -0.26 and 25.34, Fairly Valued between 76.56 and 25.34, Overvalued between 76.56 and 102.17, and Strongly Overvalued above 102.17. The current Forward P/FCF of 55.82 falls within the Historic Trend Line -Fairly Valued range.

Allegro Microsystems Inc (ALGM) has a current Price-to-Book (P/B) ratio of 5.29. Compared to its 3-year average P/B ratio of 5.86 , the current P/B ratio is approximately -9.75% higher. Relative to its 5-year average P/B ratio of 6.46, the current P/B ratio is about -18.17% 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 1.20%, the current FCF yield is approximately -3.19% lower. Relative to its 5-year average FCF yield of 1.39% , the current FCF yield is about -16.41% lower.

5.29

P/B

Median3y

5.86

Median5y

6.46

1.16

FCF Yield

Median3y

1.20

Median5y

1.39

Competitors Valuation Multiple

The average P/S ratio for ALGM's competitors is 87.45, providing a benchmark for relative valuation. Allegro Microsystems Inc Corp (ALGM) exhibits a P/S ratio of 26.98, which is -69.15% 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

ALGM.O

Allegro Microsystems Inc

Silicon Laboratories Inc

Performance Decomposition

Market capitalization of ALGM increased by 24.16% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -75.78 to -171.96.

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

126.91%

-75.78 → -171.96

P/E Change

24.16%