Allegro Microsystems Inc (ALGM) Fair Value & Analysis
Technology · US · Market cap $8.8B · ISIN US01749D1054
What is Allegro Microsystems Inc really worth?
Allegro Microsystems Inc
ALGM · US
Structural break: The valuation model sees a lasting decline in earnings power for this stock, the confidence band is broken. Treat the target with caution.
A solid business, but trading 266% above our fair value of $9.72.
Strengths
Risks
Fair value as of: Aug 28, 2026
From 15 valuation models · updated 8 days ago
Fair value updated Aug 28, 2026, revised from $4.86 to $9.72 (+100.0%) since Aug 13, 2026. Share price −17.0% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- The price sits above even our optimistic bull case ($12.48). 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 (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 28, 2026.
How to read this chart
60‑month range $16.53 – $69.62 · fair‑value band $6.98 – $12.48 · the $35.56 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 28, 2026.
Analysis
Allegro Microsystems Inc (ALGM) currently trades at $35.56, while our model-based Fair Value estimate is $9.72, implying the stock looks roughly 265.9% overvalued today. The Quality Score stands at 68/100 (solid quality), in the Technology sector. Bull case: the DCF Models group reads highest at a median of $5.84 per share, and 0 of the 14 models we run sit above the $35.56 price. Bear case: the Earnings-Based group reads lowest at $1.54, and 14 of the 14 models stay below the price. Evidence for this calculation is low.
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 28, 2026
Our scenario range runs from $6.98 (bear case) to $12.48 (bull case); at $35.56, 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 35% below its 52-week high and 59% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at −59% fair-value upside, at −73%, 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, family-balanced 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. Every input is real reported data, nothing guessed.
All 15 models by family
Widest divergence: DCF Models ($5.84) versus Earnings-Based ($1.54). Highest evidence: FCF DCF (77).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 28, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 67 · Market factors (momentum, volatility) 29
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.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
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 266% overvalued. Compare with NVIDIA Corporation →
Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Amkor, FormFactor, Vishay Intertechnology, Allegro MicroSystems, and Intel Shares Skyrocket, What You Need To Know
- AMD, Marvell Technology, Semtech, Allegro MicroSystems, and MACOM Stocks Trade Up, What You Need To Know
- Allegro MicroSystems (ALGM): Buy, Sell, or Hold Post Q2 Earnings?
- Marvell Technology, Vishay Intertechnology, and Allegro MicroSystems Shares Plummet, What You Need To Know
Peer Group
Semiconductors · 325 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
Strength profile in five axes (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.
Similar stocks
10 more Semiconductors stocks, each showing price versus our Fair Value estimate (as of Aug 28, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| NVIDIA Corporation NVDA | $227.98 | $98.98 | −57% |
| Taiwan Semiconductor Manufacturing Company TSM | $427.30 | $296.10 | −31% |
| Broadcom Inc AVGO | $371.54 | $118.27 | −68% |
| SK hynix Inc 000660 | 1,647,000 KRW | 1,481,291 KRW | −10% |
| Micron Technology, Inc MU | $932.86 | $148.38 | −84% |
| Advanced Micro Devices, Inc AMD | $476.67 | $55.02 | −88% |
| Intel Corporation INTC | $92.09 | $35.41 | −62% |
| Texas Instruments Incorporated TXN | $266.54 | $78.54 | −71% |
| QUALCOMM Incorporated QCOM | $164.78 | $147.20 | −11% |
| MediaTek Inc 2454 | 3,845 TWD | 1,559 TWD | −59% |
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