Allegro MicroSystems, Inc.

NasdaqGS:ALGM Stock Report

Market Cap: US$6.1b

Allegro MicroSystems Valuation

Is ALGM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Future Cash Flow Value

What is the Fair Price of ALGM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: ALGM ($32.99) is trading above our estimate of future cash flow value ($28.98)

Significantly Below Future Cash Flow Value: ALGM is trading above our estimate of future cash flow value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ALGM?

Key metric: As ALGM is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for ALGM. This is calculated by dividing ALGM's market cap by their current revenue.
What is ALGM's PS Ratio?
PS Ratio7.7x
SalesUS$788.40m
Market CapUS$6.11b

Price to Sales Ratio vs Peers

How does ALGM's PS Ratio compare to its peers?

The above table shows the PS ratio for ALGM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4.1x
CRUS Cirrus Logic
3.3x1.48%US$6.5b
QRVO Qorvo
2x4.15%US$7.5b
OLED Universal Display
8.9x11.22%US$5.7b
SWKS Skyworks Solutions
2.1x2.68%US$8.8b
ALGM Allegro MicroSystems
7.7x16.69%US$6.1b

Price-To-Sales vs Peers: ALGM is expensive based on its Price-To-Sales Ratio (7.7x) compared to the peer average (4.1x).

Historical Price to Sales Ratio

Historical Price to Sales Ratio compares a stock's price to its sales over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Sales Ratio vs Industry

How does ALGM's PS Ratio compare vs other companies in the US Semiconductor Industry?

21 CompaniesPrice / SalesEstimated GrowthMarket Cap
UCTT Ultra Clean Holdings
0.9x10.47%US$1.97b
CSIQ Canadian Solar
0.3x11.62%US$1.50b
JKS JinkoSolar Holding
0.1x18.44%US$1.43b
ICHR Ichor Holdings
1.1x7.26%US$1.08b
ALGM 7.7xIndustry Avg. 5.9xNo. of Companies21PS0612182430+
21 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: ALGM is expensive based on its Price-To-Sales Ratio (7.7x) compared to the US Semiconductor industry average (5.9x).

Price to Sales Ratio vs Fair Ratio

What is ALGM's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ALGM PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio7.7x
Fair PS Ratio4.9x

Price-To-Sales vs Fair Ratio: ALGM is expensive based on its Price-To-Sales Ratio (7.7x) compared to the estimated Fair Price-To-Sales Ratio (4.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ALGM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$32.99
US$38.92
+17.97%
9.29%US$49.00US$35.00n/a12
Jan ’27US$26.38
US$38.42
+45.63%
9.99%US$49.00US$35.00n/a12
Dec ’26US$25.97
US$38.58
+48.57%
10.01%US$49.00US$35.00n/a12
Nov ’26US$29.92
US$38.58
+28.95%
10.01%US$49.00US$35.00n/a12
Oct ’26US$28.42
US$37.83
+33.12%
8.69%US$42.00US$30.00n/a12
Sep ’26US$30.85
US$38.42
+24.53%
9.99%US$45.00US$30.00n/a12
Aug ’26US$31.26
US$38.42
+22.89%
9.99%US$45.00US$30.00n/a12
Jul ’26US$34.40
US$29.06
-15.53%
14.61%US$38.00US$23.00n/a13
Jun ’26US$25.35
US$26.82
+5.79%
10.28%US$31.00US$23.00n/a11
May ’26US$18.83
US$27.53
+46.19%
14.95%US$35.00US$22.00n/a11
Apr ’26US$26.18
US$28.80
+10.01%
10.76%US$35.00US$23.00n/a11
Mar ’26US$22.30
US$28.23
+26.61%
8.43%US$30.00US$23.00n/a12
Feb ’26US$24.09
US$29.91
+24.15%
20.85%US$50.00US$23.00n/a13
Jan ’26US$21.86
US$28.83
+31.89%
23.67%US$50.00US$21.00US$26.3813
Dec ’25US$21.73
US$28.68
+31.97%
23.94%US$50.00US$21.00US$25.9713
Nov ’25US$21.10
US$30.31
+43.66%
22.61%US$50.00US$25.00US$29.9210
Oct ’25US$22.04
US$33.81
+53.41%
17.30%US$50.00US$28.00US$28.4210
Sep ’25US$24.53
US$33.90
+38.21%
18.17%US$50.00US$28.00US$30.859
Aug ’25US$24.17
US$35.57
+47.17%
16.92%US$50.00US$32.00US$31.267
Jul ’25US$27.93
US$35.43
+26.86%
6.11%US$40.00US$32.00US$34.409
Jun ’25US$30.14
US$35.10
+16.46%
6.90%US$40.00US$32.00US$25.359
May ’25US$28.81
US$38.33
+33.06%
10.16%US$45.00US$35.00US$18.839
Apr ’25US$26.85
US$38.44
+43.18%
9.99%US$45.00US$35.00US$26.189
Mar ’25US$32.48
US$37.90
+16.69%
10.53%US$45.00US$33.00US$22.3010
Feb ’25US$29.14
US$38.33
+31.55%
12.55%US$45.00US$32.00US$24.099
Jan ’25US$30.27
US$39.61
+30.86%
13.26%US$48.00US$33.00US$21.868
US$38.92
Fair Value
15.2% undervalued intrinsic discount
12
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/01/25 08:15
End of Day Share Price 2026/01/23 00:00
Earnings2025/09/26
Annual Earnings2025/03/28

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Allegro MicroSystems, Inc. is covered by 15 analysts. 10 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Thomas O'MalleyBarclays
Vivek AryaBofA Global Research
Mark LipacisEvercore ISI