Allegro MicroSystems, Inc. (ALGM) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-89.2%

$3.43

vs $31.79 price

Levered DCF

$4.44

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

9.28

Safe zone

Rating

C+

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	-374.16×	-63.74×	34.13×	48.97×	46.32×	266.84×	88.5×	39.33×
P/B	5.84×	5.02×	4.59×	9.5×	7.54×	8.18×	5.3×	5.64×
P/S	6.27×	6.44×	4.95×	9.42×	7.2×	8.1×	5.16×	4.59×
EV / EBITDA	66.22×	535.71×	18.97×	33.52×	27.62×	91.13×	27.45×	20.34×
Gross margin	46.4%	44.3%	54.8%	56.1%	53.0%	47.2%	40.2%	44.2%
Operating margin	4.8%	-2.7%	18.7%	20.9%	17.8%	2.1%	8.1%	13.8%
Net margin	-1.7%	-10.1%	14.6%	19.2%	15.5%	3.0%	5.7%	11.7%
Current ratio	3.45×	4.3×	4.85×	4.03×	4.91×	3.69×	2.99×	3.53×
Debt / equity	0.3×	0.4×	0.24×	0.04×	0.06×	0.04×	0.14×	0.07×
Interest coverage	1.28×	-0.65×	18.23×	87.03×	54.68×	3.18×	480.25×	82.58×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	8.3%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	2228.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	-1.6%	-7.9%	13.5%	19.4%	16.3%	3.1%	5.8%	14.4%
Return on invested capital	3.3%	-1.3%	10.8%	17.7%	14.7%	-24.0%	5.0%	12.9%
Return on assets	-1.1%	-5.1%	10.0%	15.9%	13.4%	2.4%	4.5%	11.3%
Free cash flow yield	2.2%	0.5%	1.1%	1.2%	1.6%	1.7%	1.1%	0.7%
Earnings yield	-0.3%	-1.6%	2.9%	2.0%	2.2%	0.4%	1.1%	2.5%
Enterprise value	$5.7B	$4.9B	$5.3B	$8.9B	$5.3B	$4.6B	$3.2B	$3.3B
Net debt / EBITDA	1.38×	26.95×	0.23×	-1.17×	-1.26×	-3.4×	-1.1×	-0.36×
Cash conversion cycle (days)	152	175	139	130	114	119	147	150