Allegro Microsystems Valuation
| ALGM Stock | USD 38.62 0.42 1.10% |
At this time, the firm appears to be undervalued. Allegro Microsystems shows a prevailing Real Value of $42.52 per share. The current price of the firm is $38.62. Our model approximates the value of Allegro Microsystems from analyzing the firm fundamentals such as Current Valuation of 7.23 B, profit margin of (0.02) %, and Return On Equity of -0.0137 as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Allegro Microsystems' valuation include:
Price Book 7.3521 | Enterprise Value | Enterprise Value Ebitda 122.6174 | Price Sales 8.5217 | Forward PE 36.7647 |
Undervalued
Today
Please note that Allegro Microsystems' price fluctuation is very steady 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 38.62 | Real 42.52 | Target 44.33 | Hype 38.89 | Naive 37.75 |
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 |
|
Allegro Revenue by Product
Allegro Microsystems Total Value Analysis
Allegro Microsystems is presently forecasted to have valuation of 7.23 B with market capitalization of 7.16 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 |
7.23 B | 7.16 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 0.07. 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 may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Total Cash From Operating Activities | 67.6 M | 71.2 M |
|
|
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 February.Allegro Microsystems Profitability Analysis
Based on Allegro Microsystems' profitability indicators, Allegro Microsystems' profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Allegro Microsystems' ability to earn profits and add value for shareholders.Net Loss | First Reported 2019-06-30 | Previous Quarter 6.5 M | Current Value 8.3 M | Quarterly Volatility 26.9 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.39 | 0.5609 |
|
|
For Allegro Microsystems profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Allegro Microsystems to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Allegro Microsystems utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Allegro Microsystems's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Allegro Microsystems over time as well as its relative position and ranking within its peers.
Allegro Microsystems Earnings per Share Projection vs Actual
By analyzing Allegro Microsystems' earnings estimates, investors can diagnose different trends across Allegro Microsystems' analyst sentiment over time as well as compare current EPS estimates against different timeframes. Please be aware that the consensus of earnings estimates for Allegro Microsystems is based on EPS before non-recurring items and includes expenses related to employee stock options.Allegro Microsystems Ownership Allocation
Allegro Microsystems holds a total of 185.29 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 fourteen million six hundred ninety-three thousand five hundred sixty-six 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 378.94 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 | 369.8 M | 425.8 M | |
| Pretax Profit Margin | 0.22 | 0.23 | |
| Operating Profit Margin | 0.21 | 0.12 | |
| Net Profit Margin | 0.19 | 0.20 | |
| Gross Profit Margin | 0.56 | 0.39 |
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 | 36.7647 |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Will Semiconductors & Semiconductor Equipment sector continue expanding? Could Allegro diversify its offerings? 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. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Allegro Microsystems data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Quarterly Earnings Growth (0.48) | Earnings Share (0.07) | Revenue Per Share | Quarterly Revenue Growth 0.289 | Return On Assets |
Investors evaluate Allegro Microsystems using market value (trading price) and book value (balance sheet equity), each telling a different story. Calculating Allegro Microsystems' intrinsic value - the estimated true worth - helps identify when the stock trades at a discount or premium to fair value. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. External factors like market trends, sector rotation, and investor psychology can cause Allegro Microsystems' market price to deviate significantly from intrinsic value.
Understanding that Allegro Microsystems' value differs from its trading price is crucial, as each reflects different aspects of the company. Evaluating whether Allegro Microsystems represents a sound investment requires analyzing earnings trends, revenue growth, technical signals, industry dynamics, and expert forecasts. Conversely, Allegro Microsystems' market price signifies the transaction level at which participants voluntarily complete trades.