Allegro Microsystems Inc (ALGM) fair value: what the stock is really worth
As of Nov 11, 2026: fair value (intrinsic value) of Allegro Microsystems Inc stock $9.72, price $32.11, that is 69.7% below the price, quality 70 out of 100. Rating: strongly overvalued. Calculated from audited financials with 14 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 12, 2026.
How to read this chart
60‑month range $16.53 – $69.62 · fair‑value band $6.98 – $12.46 · the $32.11 price screens above the $9.72 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 12, 2026.
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Allegro MicroSystems, Inc., together with its subsidiaries, designs, develops, manufactures, and markets sensor integrated circuits (ICs) and application-specific power ICs for sensing, motion control, and power management functions of complex electromechanical or power conversion systems.
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Its products include magnetic sensor ICs, such as position, speed, and electric current sensor ICs; and power ICs comprising motor driver ICs, such as regulator, power management ICs, and LED driver ICs, and isolated gate drivers.
The company sells its products to original equipment manufacturers and distributors primarily in the automotive and industrial markets through its direct sales force, third party distributors, independent sales representatives, and consignment.
The company serves automotive and industrial markets, including advanced industrial markets such as AI data centers, robotics, and energy infrastructure sectors. It operates in the United States, rest of the Americas, Europe, Japan, Greater China, South Korea, and other Asian markets.
The company was founded in 1990 and is headquartered in Manchester, New Hampshire.
Stock analysis
Allegro Microsystems Inc (ALGM) currently trades at $32.11, while our model-based Fair Value estimate is $9.72, 70% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of $7.55 per share, and 0 of the 14 models we run sit above the $32.11 price.
Bear case: the Earnings-Based group reads lowest at $1.07, and 14 of the 14 models stay below the price. Data coverage for this calculation is low.
Scenario range: $6.98 (bear) to $12.46 (bull), the price of $32.11 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 70/100 (solid quality), in the Technology sector.
Weak Growth: Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Allegro Microsystems Inc reported revenue of $890M in FY2026 versus $769M in FY2022, a compound +3.7%/yr. Reported net income was −$14.9M in FY2026.
Key figures
Market cap $6.0B Mid · P/E ratio 200.7 · P/S ratio 5.90 · EPS (TTM) $0.1600 · Net margin 3.1% · Return on equity 3.2% · Return on assets (EBIT) 9.4% (5-year average) · Operating margin 12.8%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 35 out of 100 (low confidence).
What moves the price
The share trades about 54% below its 52-week high and 41% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Technology peers we cover trades at −17% fair-value upside, at −70%, ALGM screens richer than that median.
Fair Value models
The price assumes far more growth than our models allow for, so the models scatter widely ($0.2400 to $10.10). Read the Fair Value as a cautious anchor, not a price target; the Growth Forecast section shows what the price assumes.
Bear$6.98Fair Value $9.72Bull$12.46
Price $32.11 · Downside -69.7%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 7 months old). Earnings retained since then ($0.0991 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Best data coverage
FCF DCF$6.39$9.07$12.4078
Growth DCF$6.42$8.76$11.5077
Owner Earnings$2.58$3.81$5.3474
All 14 models by family
DCF Models
FCF DCF$6.39$9.07$12.4078
Owner Earnings$2.58$3.81$5.3474
5Y Revenue Exit$3.51$4.79$6.2871
5Y EBITDA Exit$6.39$10.10$14.3373
10Y Revenue Exit$4.67$6.02$7.6266
10Y EBITDA Exit$6.31$9.21$12.8966
Earnings-Based
EPV$0.8900$1.07$1.2274
Multiples
EV/EBIT$3.49$4.86$6.2366
EV/EBITDA$7.35$10.01$12.6867
EV/Revenue$1.45$2.34$3.2353
Asset-Based
NCAV (Graham)$0.1600$0.2400$0.290055
Growth DCF
Growth DCF$6.42$8.76$11.5077
Rev-Margin DCF$3.51$4.92$6.5771
Economic Profit
ROIC Compounder$0.8900$1.07$1.2270
The fair value above starts from this blend and is adjusted for a cyclical trough year.
In the last 6 months, 7 officers or directors sold shares worth $1.7M and none bought.
SaleJennie RaubacherDirector1,000 shares at $45.32$45,320Aug 17, 202610b5-1 plan
SaleErin HagenSVP, CHRO2× since Mar 2, 2026: 4,883 shares, avg. $39.39$192,361Aug 10, 2026
SaleRichard MadormoSVP, Worldwide Sales5,000 shares at $52.72$263,600Jun 3, 2026
SaleTroy ColemanSVP, General Manager, Products4,500 shares at $45.72$205,740May 22, 2026
SaleRoald Graham WebsterVP, Chief Accounting Officer5,217 shares at $44.89$234,191May 21, 2026
SaleIan KentSVP, Global Operations2,642 shares at $41.56$109,802May 18, 2026
SaleSusan D LynchDirector16,711 shares at $45.46$759,682May 14, 2026
SaleMichael DooguePresident and CEO, Director30,089 shares at $47.23$1.4MMay 11, 2026
SaleSharon BrianskySVP, GC and Secretary4× since Dec 10, 2025: 55,806 shares, avg. $35.60$2.0MMay 11, 2026
Plus 22 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.40/100
Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Revenue growth 1 year
+22.8%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−2.9%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+8.5%
Start year 2021 (pandemic)
Revenue growth 7 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+3.0%
’19
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’21
’22
’23
’24
’25
’26
Profit margin (trend) ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.
2.1% (2021) → 4.8% (2026)
What shareholders gained per year ⓘWe only publish this rate when it is defensible. Reason: fiscal 2026 is a loss year, no rate is defined from a loss
not computed
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+33.2%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+16.9%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +30.1% a year for the price and +14.2% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (100 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
AI conclusion: Data center applications tied to AI power needs offer the main growth avenue in power ICs, while sustained net losses and thin evidence of durable advantages remain the central weakness.
Main risk: Cyclical automotive demand would reduce sales of magnetic sensors and power ICs used in motion control and electrification systems.
Allegro MicroSystems designs magnetic sensors and power ICs that enable motion control and electrification in automotive and industrial systems. Data center applications, tied to AI power needs, now represent 17 percent of sales and are expected to more than double. Our models currently see the stock as overvalued. Will the data center expansion deliver more lasting growth than exposure to cyclical automotive demand creates downside risk?
Compare Allegro Microsystems Inc with another stock
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Semiconductors · 397 stocks
Beats the industry median on 3/13 measures
Overall it trails its industry peers.
Valuation
Quality Score70 · Top 25%
Fair Value upside−69.7% · Bottom 25%
Profitability
Return on equity (12 months)3.2% · Below median
Return on assets−1.1% · Below median
Net margin (12 months)3.1% · Below median
Operating margin (12 months)12.8% · Above median
Growth and dividend
Revenue growth (quarter YoY)29.2% · Above median
Balance sheet
Debt / equity0.30× · Above median
Valuation Multiplesvs Semiconductors median · lower = cheaper
P/E (12 months)200.7× · Priciest 25%
P/B6.22× · Priciest 25%
P/S (12 months)5.90× · Pricier than median
Price / free cash flow (fiscal year)47.6× · Pricier than median
EV/EBITDA36.8× · Pricier than median
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 0
FUTURE (revenue growth)100· sector 100
PAST (return on equity)13· sector 24
HEALTH (low debt)85· sector 96
DIVIDEND (yield)0· sector 19
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Is Allegro Microsystems Inc (ALGM) overvalued or undervalued?
As of Nov 12, 2026, our model estimates a fair value of $9.72 versus a price of $32.11, about 70% lower (overvalued).
What is the fair value of ALGM?
Our model-based fair value for Allegro Microsystems Inc is $9.72 (as of Nov 12, 2026), built from audited fundamentals. The current price: $32.11.
What is the quality score of ALGM?
Allegro Microsystems Inc has a Quality Score of 70/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Allegro Microsystems Inc (ALGM)?
Our model-based price target is the fair value of $9.72 (as of Nov 12, 2026) from 14 valuation models. Cautious scenario $6.98, optimistic scenario $12.46. It is a calculation from audited fundamentals, not an analyst target.
What is the Allegro Microsystems Inc stock forecast for 2026?
Our models put fair value at $9.72, about 70% lower versus a price of $32.11 (overvalued). Cautious scenario $6.98, optimistic scenario $12.46. The calculation is refreshed regularly with new filings.
What is the revenue of Allegro Microsystems Inc (ALGM)?
Allegro Microsystems Inc reported trailing-twelve-month revenue of about $1.0B (latest available figure, as of Nov 12, 2026).
What growth is priced into Allegro Microsystems Inc (ALGM)?
For today's price to be fair in a discounted-cash-flow model, Allegro Microsystems Inc would have to grow free cash flow by +33.2 % per year for five years (discount rate 12.1 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +8.5 % per year. As of Nov 12, 2026.
What discount rate (WACC) does the fair value of ALGM use?
Our models discount Allegro Microsystems Inc at 12.1 %: a base by market capitalisation (mid), damped by beta 1.99, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Allegro Microsystems Inc that is +33.2 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (12.1 %) and the same formula as our fair value.
How much growth has Allegro Microsystems Inc (ALGM) delivered so far?
Over the past 5 years revenue at Allegro Microsystems Inc grew +8.5 % a year. The price currently implies free-cash-flow growth of +33.2 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Allegro Microsystems Inc (ALGM) growing?
The median revenue growth in the sector is +11.5 % a year. That is the yardstick for the growth priced into Allegro Microsystems Inc (+33.2 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Allegro Microsystems Inc (ALGM)?
The free-cash-flow yield on the price is 2.10 %: that much free cash flow Allegro Microsystems Inc produces per unit of market value. When it exceeds the discount rate of our models (12.1 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Allegro Microsystems Inc (ALGM)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Allegro Microsystems Inc it is $9.72 per share (as of Nov 12, 2026), against a price of $32.11. It is the blended result of 14 valuation models in 6 families (DCF Models, Earnings-Based, Multiples, Asset-Based, Growth DCF, Economic Profit).
Is Allegro Microsystems Inc stock overvalued or undervalued in 2026?
As of Nov 12, 2026, ALGM trades above its calculated fair value: price $32.11, fair value $9.72, a gap of about −70% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of ALGM?
No. The price is what the market pays today ($32.11); the fair value is what the company's own numbers justify ($9.72). For Allegro Microsystems Inc the two are $22.39 per share apart. That gap is exactly why we show both numbers side by side.
How much is Allegro Microsystems Inc worth?
The market values Allegro Microsystems Inc at about $6.0B (market capitalisation, as of Nov 12, 2026). Per share that is $32.11; our models calculate a fair value of $9.72 per share.
What do the bullish and bearish scenarios say about ALGM?
Our models span a range for Allegro Microsystems Inc: cautious scenario $6.98, base $9.72, optimistic $12.46 per share (as of Nov 12, 2026, price $32.11). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of ALGM?
Allegro Microsystems Inc trades at a price-to-earnings ratio of 200.7 (as of Nov 12, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $9.72 is built from several models across several years. Other multiples: P/B 6.2, P/S 5.9, EV/EBITDA 36.8.
How solid is the balance sheet of Allegro Microsystems Inc (ALGM)?
Balance-sheet figures for Allegro Microsystems Inc (as of Nov 12, 2026): return on equity 3.2%, debt of 0.30 per unit of equity. They feed the Quality Score of 70/100, which measures business quality independently of the share price.
How far is ALGM from its 52-week high?
Allegro Microsystems Inc trades at $32.11, about 54% below its 52-week high of $69.62 and 41% above the low of $22.80 (as of Nov 11, 2026). Distance from the high says nothing about value: that is what the fair value of $9.72 is for.
Which stocks are comparable to Allegro Microsystems Inc?
From the same area (Technology) we also value NVIDIA Corporation, Taiwan Semiconductor Manufacturing Company, Broadcom Inc, Micron Technology, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Allegro Microsystems Inc stock attractive at the current price?
The data as of Nov 12, 2026: price $32.11, calculated fair value $9.72 (−70%), Quality Score 70/100, from 14 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of ALGM calculated?
We run Allegro Microsystems Inc through 14 models from 6 families: DCF Models, Earnings-Based, Multiples, Asset-Based, Growth DCF, Economic Profit. Every model gets the same audited fundamentals; the fair value of $9.72 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.0% above its aggregate fair value. Allegro Microsystems Inc itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Allegro Microsystems Inc (ALGM)?
The closing price on Nov 11, 2026 was $32.11. Our model-based fair value is $9.72, about 70% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Allegro Microsystems Inc right now?
The price sits above even our optimistic bull case ($12.46). The favourable scenario is already priced in. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution. Solid but not exceptional quality (70/100) and above fair value, neither a clear bargain nor a standout compounder.
Key figures of Allegro Microsystems Inc
How large is the market capitalisation of Allegro Microsystems Inc (ALGM)?
The market capitalisation of Allegro Microsystems Inc is $6.0B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Allegro Microsystems Inc (ALGM)?
The price-to-sales ratio of Allegro Microsystems Inc is 5.90 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Allegro Microsystems Inc (ALGM)?
Earnings per share at Allegro Microsystems Inc are $0.1600 (price ÷ EPS = P/E 200.7). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Allegro Microsystems Inc (ALGM)?
The net margin of Allegro Microsystems Inc is 3.1% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Allegro Microsystems Inc (ALGM)?
The return on equity (ROE) of Allegro Microsystems Inc is 3.2% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Allegro Microsystems Inc (ALGM)?
On an EBIT basis the return on assets of Allegro Microsystems Inc is 9.4% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Allegro Microsystems Inc (ALGM)?
The operating margin of Allegro Microsystems Inc is 12.8% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Allegro Microsystems Inc (ALGM)?
Revenue at Allegro Microsystems Inc is growing +29.2% versus a year earlier (3y avg −2.9%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Allegro Microsystems Inc (ALGM)?
Earnings per share at Allegro Microsystems Inc are growing +300% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Allegro Microsystems Inc (ALGM) carry?
The net debt of Allegro Microsystems Inc is $119M (fiscal year 2026, ≈ 0.9 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Thin data
Nov 12, 2026