Allegro MicroSystems, Inc.

NasdaqGS:ALGM Stock Report

Market Cap: US$5.4b

Allegro MicroSystems Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair 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.

Below Fair Value: ALGM ($28.21) is trading above our estimate of fair value ($22.59)

Significantly Below Fair Value: ALGM is trading above our estimate of fair value.


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

ALGM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue5.2x
Enterprise Value/EBITDA19x
PEG Ratio2.8x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ALGM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22x
RMBS Rambus
16.8x-6.2%US$6.1b
LSCC Lattice Semiconductor
37.9x2.5%US$8.3b
CRUS Cirrus Logic
24.4x4.8%US$6.6b
TSEM Tower Semiconductor
8.8x-34.8%US$4.3b
ALGM Allegro MicroSystems
35.8x12.9%US$5.4b


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a24.5%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a24.5%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: ALGM is expensive based on its Price-To-Earnings Ratio (35.8x) compared to the US Semiconductor industry average (29.4x).


Price to Earnings Ratio vs Fair Ratio

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

ALGM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio35.8x
Fair PE Ratio26.3x

Price-To-Earnings vs Fair Ratio: ALGM is expensive based on its Price-To-Earnings Ratio (35.8x) compared to the estimated Fair Price-To-Earnings Ratio (26.3x).


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$28.21
US$35.43
+25.6%
6.1%US$40.00US$32.00n/a9
Jun ’25US$30.14
US$35.10
+16.5%
6.9%US$40.00US$32.00n/a9
May ’25US$28.81
US$38.33
+33.1%
10.2%US$45.00US$35.00n/a9
Apr ’25US$26.85
US$38.44
+43.2%
10.0%US$45.00US$35.00n/a9
Mar ’25US$32.48
US$37.90
+16.7%
10.5%US$45.00US$33.00n/a10
Feb ’25US$29.14
US$38.33
+31.5%
12.6%US$45.00US$32.00n/a9
Jan ’25US$30.27
US$39.61
+30.9%
13.3%US$48.00US$33.00n/a8
Dec ’24US$27.28
US$39.11
+43.4%
15.3%US$48.00US$29.00n/a8
Nov ’24US$25.76
US$48.74
+89.2%
20.4%US$60.00US$34.00n/a8
Oct ’24US$31.94
US$52.57
+64.6%
14.5%US$60.00US$36.00n/a7
Sep ’24US$38.39
US$55.33
+44.1%
6.8%US$60.00US$50.00n/a6
Aug ’24US$45.24
US$55.33
+22.3%
6.8%US$60.00US$50.00n/a6
Jul ’24US$45.14
US$51.33
+13.7%
2.9%US$54.00US$50.00n/a6
Jun ’24US$39.49
US$51.33
+30.0%
2.9%US$54.00US$50.00US$30.146
May ’24US$36.69
US$51.00
+39.0%
3.8%US$54.00US$48.00US$28.816
Apr ’24US$47.99
US$51.00
+6.3%
3.8%US$54.00US$48.00US$26.856
Mar ’24US$43.77
US$43.33
-1.0%
2.6%US$45.00US$42.00US$32.486
Feb ’24US$39.68
US$43.33
+9.2%
2.6%US$45.00US$42.00US$29.146
Jan ’24US$30.02
US$30.67
+2.2%
11.7%US$38.00US$26.00US$30.276
Dec ’23US$31.15
US$30.57
-1.9%
10.9%US$38.00US$26.00US$27.287
Nov ’23US$25.86
US$30.57
+18.2%
10.9%US$38.00US$26.00US$25.767
Oct ’23US$21.85
US$31.14
+42.5%
15.8%US$42.00US$26.00US$31.947
Sep ’23US$22.07
US$31.14
+41.1%
15.8%US$42.00US$26.00US$38.397
Aug ’23US$25.18
US$31.14
+23.7%
15.8%US$42.00US$26.00US$45.247
Jul ’23US$19.96
US$33.43
+67.5%
11.4%US$42.00US$30.00US$45.147
Jun ’23US$25.35
US$33.43
+31.9%
11.4%US$42.00US$30.00US$39.497

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


Discover undervalued companies

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.