Allegro Microsystems Valuation
| ALGM Stock | USD 28.81 0.86 3.08% |
At this time, the firm appears to be overvalued. Allegro Microsystems shows a prevailing Real Value of $25.78 per share. The current price of the firm is $28.81. Our model approximates the value of Allegro Microsystems from analyzing the firm fundamentals such as Current Valuation of 5.57 B, return on equity of -0.0705, and Profit Margin of (0.10) % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Allegro Microsystems' valuation include:
Price Book 5.7307 | Enterprise Value | Enterprise Value Ebitda 607.7367 | Price Sales 7.3475 | Forward PE 62.1118 |
Overvalued
Today
Please note that Allegro Microsystems' price fluctuation is not too volatile at this time. Calculation of the real value of Allegro Microsystems is based on 3 months time horizon. Increasing Allegro Microsystems' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Allegro stock is determined by what a typical buyer is willing to pay for full or partial control of Allegro Microsystems. Since Allegro Microsystems is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Allegro Stock. However, Allegro Microsystems' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 28.81 | Real 25.78 | Target 26.82 | Hype 28.91 | Naive 27.66 |
The intrinsic value of Allegro Microsystems' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Allegro Microsystems' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Allegro Microsystems helps investors to forecast how Allegro stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Allegro Microsystems more accurately as focusing exclusively on Allegro Microsystems' fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Allegro Microsystems' intrinsic value based on its ongoing forecasts of Allegro Microsystems' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Allegro Microsystems' closest peers.
Allegro Microsystems Cash |
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Allegro Valuation Trend
Knowing Allegro Microsystems' actual value is paramount for traders when making sound investment determinations. Using both Allegro Microsystems' enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Allegro Revenue by Product
Allegro Microsystems Total Value Analysis
Allegro Microsystems is presently forecasted to have valuation of 5.57 B with market capitalization of 5.33 B, debt of 368.49 M, and cash on hands of 293.59 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Allegro Microsystems fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
5.57 B | 5.33 B | 368.49 M | 293.59 M |
Allegro Microsystems Investor Information
About 33.0% of the company shares are held by company insiders. The company has Price/Earnings To Growth (PEG) ratio of 1.64. Allegro Microsystems recorded a loss per share of 0.39. The entity had not issued any dividends in recent years. Based on the key indicators related to Allegro Microsystems' liquidity, profitability, solvency, and operating efficiency, Allegro Microsystems is doing better financially today then in previous quarter. It has a moderate probability of reporting better financial numbers in July.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Total Cash From Operating Activities | 58.8 M | 61.9 M |
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Allegro Microsystems Asset Utilization
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The recent return on assets of Allegro suggests not a very effective usage of assets in June.Allegro Microsystems Ownership Allocation
Allegro Microsystems holds a total of 184.9 Million outstanding shares. The majority of Allegro Microsystems outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Allegro Microsystems to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Allegro Microsystems. Please pay attention to any change in the institutional holdings of Allegro Microsystems as this could imply that something significant has changed or is about to change at the company. Also note that nearly thirty-five million seven hundred seventy-eight thousand three hundred fourty-two invesors are currently shorting Allegro Microsystems expressing very little confidence in its future performance.Allegro Microsystems Profitability Analysis
The company reported the previous year's revenue of 725.01 M. Net Loss for the year was (72.76 M) with profit before overhead, payroll, taxes, and interest of 322.89 M.About Allegro Microsystems Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Allegro Microsystems. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Allegro Microsystems based exclusively on its fundamental and basic technical indicators. By analyzing Allegro Microsystems's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Allegro Microsystems's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Allegro Microsystems. We calculate exposure to Allegro Microsystems's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Allegro Microsystems's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 321.5 M | 425.8 M | |
| Pretax Profit Margin | (0.12) | 0.22 | |
| Operating Profit Margin | (0.03) | 0.21 | |
| Net Profit Margin | (0.10) | 0.19 | |
| Gross Profit Margin | 0.44 | 0.56 |
Allegro Microsystems Growth Indicators
Investing in growth stocks can be very risky. If the company such as Allegro Microsystems does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 187.7 M | |
| Quarterly Earnings Growth Y O Y | -0.485 | |
| Forward Price Earnings | 62.1118 |
Allegro Microsystems Current Valuation Indicators
Allegro Microsystems' valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Allegro Microsystems' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Allegro Microsystems, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Allegro Microsystems' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Allegro Microsystems' worth.When determining whether Allegro Microsystems is a strong investment it is important to analyze Allegro Microsystems' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Allegro Microsystems' future performance. For an informed investment choice regarding Allegro Stock, refer to the following important reports: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Allegro Microsystems. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in price. To learn how to invest in Allegro Stock, please use our How to Invest in Allegro Microsystems guide.You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Is Semiconductors & Semiconductor Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Allegro Microsystems. If investors know Allegro will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Allegro Microsystems listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.48) | Earnings Share (0.39) | Revenue Per Share | Quarterly Revenue Growth (0.20) | Return On Assets |
The market value of Allegro Microsystems is measured differently than its book value, which is the value of Allegro that is recorded on the company's balance sheet. Investors also form their own opinion of Allegro Microsystems' value that differs from its market value or its book value, called intrinsic value, which is Allegro Microsystems' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Allegro Microsystems' market value can be influenced by many factors that don't directly affect Allegro Microsystems' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Allegro Microsystems' value and its price as these two are different measures arrived at by different means. Investors typically determine if Allegro Microsystems is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Allegro Microsystems' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.