2 models fit Allegro MicroSystems Inc. Common Stock and they agree: 2 of 2 land within 15% of the average. The price is above every model.
Two or more of our models back this value.
Large premium(i)
Valued as a cyclical company: P/E comparison, EV/EBITDA comparison, and Discounted cash flow.
ACCE opinionAllegro MicroSystems Inc. Common Stock (ALGM)
Fair value (2 models)
$9.18
ACCE price target
$32.00
Rating
Overvalued
Horizon
12 months
Fair value published on 18 Oct 2026, 15:06 CEST; previously $9.35 since 14 Oct 2026, 00:00 CEST.
ACCE price target published on 10 Oct 2026, 00:00 CEST.
Rating published on 18 Oct 2026, 15:06 CEST.
Price used: $31.48 at the close on 23 Oct 2026, 22:00 CEST.
Models: P/E comparison and EV/EBITDA comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
243.0% above
-70.8% to fair value
ACCE score
39
out of 100
Analysts
92% buy
13 covering
P/E
528.2x
forward 35.8x
1-year return
+1.6%
Dividend yield
0.00%
Allegro MicroSystems Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Allegro MicroSystems designs and sells power and sensing semiconductors, including Hall-effect and magnetic position sensors and gate drivers, that go into automotive traction inverters, EV powertrains and industrial motor control. Its edge is in magnetic sensing and power integrated circuits qualified into automotive programs, where long design-in cycles make switching suppliers costly once a part is locked into a platform. Revenue growth of 27.5% and a 47.4% gross margin show demand for those parts is still expanding, while a forward P/E of 35.8 against a trailing 539.3 says earnings are expected to recover from a thin base. The 9.8% operating margin and 1.5% ROE, though, mean the profit has not yet caught up with the sales, so the investment case rests on margin expansion as volumes scale. With a composite score of 41/100 and no index membership, the quantitative picture is weak, so this name merits a deeper look only if you have a view on EV and industrial power cycles and on whether operating leverage arrives.
⚠ Investor warnings · 4 flagsAI-assisted·How I use AI
high
Earnings falling despite revenue growth
Revenue rose 27.5% year over year while earnings fell 48.5%, and net margin sits at just 1.5%. Growth is not reaching the bottom line.
high
Valuation far above model fair value
The stock trades 243.0% above the model fair value of $9.18, and the trailing P/E is 527.0. Forward P/E of 35.8 still prices in a sharp earnings recovery.
moderate
Score down sharply in 90 days
The ACCE score fell 14 points from 56 to 42 over 90 days, with the value and margin components both at 32. Deterioration is broad rather than isolated.
moderate
Elevated short interest
Short interest stands at 11.6% of shares. Insiders recorded no buys and $0.85M in sales across their last 10 disclosed transactions.
AI research notes
AI-assisted·How I use AIWritten Oct 19, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Revenue grew 27.5% year over year, far faster than its 8.5% average annual pace over five years.
Analysts rate the stock Buy or Strong Buy at 92% (12 of 13), and their mean price target sits 72.1% above the current share price.
Free cash flow over the last twelve months reached $125M, and debt is modest at 0.30 times equity.
Why it could disappoint
Net margin is just 1.5%, and return on invested capital is negative at -1.0%, so the growth is not yet earning profit.
The trailing P/E of 527.0x and the forward P/E of 35.8x both sit above the sector median forward P/E of 27.3x.
The stock trades 243.0% above the model fair value of $9.18, and only 2 of 3 valuation models feed that figure.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Oct 29, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
INVESTOR
Where ALGM's valuation models land
Price
$31.48
Model fair value
$9.18
Model range
$8.44 to $10.66
Fair value $9.18
Price $31.48
The price is above the whole model range.
Model
Fair value
Upside
Discounted cash flow
EV/EBITDA comparison
P/E comparison
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
The full quality picture: a reason under every score, how the scores moved, and the conviction breakdown.
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+Conviction breakdown and growth / value / quality / momentum scores