Allegro MicroSystems, Inc (ALGM) Fair Value & Analysis
Technology · US · Market cap $8.8B
Allegro MicroSystems, Inc
ALGM · US
Fair value as of: Aug 13, 2026
From 15 valuation models · updated today
Fair value updated Aug 13, 2026, revised from $3.49 to $9.72 (+178.5%) since Jul 17, 2026. Share price −15.7% over the past month.
A solid business, but screening 78% overvalued on our models.
What matters now
- The price sits above even our optimistic bull case ($12.48). The favourable scenario is already priced in.
- Solid but not exceptional quality (68/100) and above fair value, neither a clear bargain nor a standout compounder.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.
How to read this chart
60‑month range $16.53 – $69.62 · fair‑value band $6.98 – $12.48 · the $44.13 price screens above the $9.72 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.
Analysis
Allegro MicroSystems, Inc (ALGM) currently trades at $44.13, while our model-based Fair Value estimate is $9.72, implying the stock looks roughly 78.0% overvalued today. The Quality Score stands at 68/100 (solid quality), in the Technology sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).
Over the trailing twelve months, Allegro MicroSystems, Inc generated revenue of $890M at a net margin of -1.7%. Revenue grew 26.1% year over year. It earns a return on equity of -1.6%. Net debt stands at $119M. Fundamentals as of Aug 13, 2026
Our scenario range runs from $6.98 (bear case) to $12.48 (bull case); at $44.13, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 19% below its 52-week high and 97% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at -54% fair-value upside, at -78%, ALGM screens richer than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.
All 15 models by family
Widest divergence: DCF Models ($5.84) versus Earnings-Based ($1.54). Highest evidence: Growth DCF (80).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 67 · Market factors (momentum, volatility) 42
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
About the company
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.
Full company description
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. 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.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2022 – FY2026 · reported fiscal years
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.
ALGM screens 78% overvalued. Compare with NVIDIA Corporation →
Earlier news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Is Allegro MicroSystems (ALGM) Outperforming Other Computer and Technology Stocks This Year?
- Why Allegro MicroSystems (ALGM) Stock Is Trading Lower Today
- ALGM Q1 Earnings Call Highlights AI Data Center Growth
- ALGM Q1 Earnings Beat Estimates on Data Center Strength
Peer Group
Semiconductors · 323 stocks
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.
Valuation Multiples vs Semiconductors median · lower = cheaper
Snowflake
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
VALUE 0: the price sits above our fair-value range.
Insider activity: 40/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more Semiconductors stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| NVIDIA Corporation NVDA | $217.50 | $98.98 | -54% |
| Taiwan Semiconductor Manufacturing Company TSM | $429.15 | $291.42 | -32% |
| Broadcom Inc 1AVGO | €366.85 | €121.25 | -67% |
| Micron Technology, Inc ZMIC | C$43.68 | C$6.23 | -86% |
| SK hynix Inc 000660 | 1,504,000 KRW | 1,481,291 KRW | -2% |
| Advanced Micro Devices, Inc 1AMD | €428.20 | €56.33 | -87% |
| Intel Corporation INTC | C$54.79 | C$11.71 | -79% |
| MediaTek Inc 2454 | 4,015 TWD | 1,559 TWD | -61% |
| SK Square Co 402340 | 1,024,000 KRW | 1,204,862 KRW | +18% |
| GigaDevice Semiconductor Inc 3986 | HK$515.00 | HK$274.86 | -47% |
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How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.
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