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Thursday 5 November 2026 Export ALGM’s income statement to Excel — free account

Allegro MicroSystems, Inc.

ALGM Technology Semiconductors

Allegro MicroSystems, Inc.’s revenue for fiscal 2026 (year ended March 2026) was $890.1 million, up 22.8% from fiscal 2025.

Revenue
+29.2%
EPS
+200.0%
Free cash flow
+119.2%
Total debt
−0.05%

Quarter to September 2026, against a year earlier

27.10 4.15 −13.28%
Market cap
$5.8B
P/E
169×
Fwd P/E
57.1×
Dividend yield
—
F-score
7/9
Altman Z
8.52
Beneish M
−2.81
Dividend safety
41/100
Overview Business Profile Earnings & Analysis
Financials
Income Statement Balance Sheet Cash Flow Metrics & Ratios
Segments Valuation Filings

Allegro MicroSystems, Inc. (ALGM) valuation and DCF model

What the price implies · reverse DCF

At $27.10 the price implies free cash flow after share-based pay growing 26.9% a year for ten years.

Free cash flow after share-based pay grew −15.6% a year over the last five years. The price asks for 42.6 points a year more than its five-year rate. The industry’s median company is priced for 25.1%.

In March 2021 the price assumed 33.4% a year; Allegro MicroSystems, Inc. went on to grow free cash flow after share-based pay 20.5% a year to FY2026.

Price implies
26.9%
Last 5 years, reported
−15.6%
Industry median implies
25.1%

The headline discounts the last twelve months’ free cash flow after share-based pay at 9.0% for ten years and grows it 2.5% a year after that, the same for every company, so the figure compares across the market (how a reverse DCF works).

The other way round · DCF
The price needs
26.9% a year for ten years
$27.10
today’s price
Its base case
−10.0% a year for five years, then −6.0%
$1.51
94.4% below today’s price

Both are growth in free cash flow after share-based pay, discounted at 9.0%, with 2.5% a year after year ten.

Base case on its own ten-year record Allegro MicroSystems, Inc.’s own growth, carried forward

Its assumptions

Powerpack lets you start from a scenario and type over any of them.

The base case’s inputs, which Powerpack lets you change
1 · Cash flow to equity
the four quarters to September 2026, from the 10-Q and 10-K filings, before share-based pay

Yearly growth in cash flow. It usually slows as the company matures.

Today’s price implies free cash flow after share-based pay growing 26.9% a year for ten years.

2 · Rates

Cost of equity is the yearly return shareholders require, typically 8–11%. Terminal growth is growth forever after year 10, usually near long-run inflation, 2–3%.

3 · Per share

Diluted shares outstanding. Net debt, under Advanced inputs, is taken off before dividing.

Advanced inputs
Free cash flow Revenue and margin
negative is net cash
new shares the cash flow does not pay for

Against Allegro MicroSystems, Inc.’s own cost of capital: risk-free 4.3% + beta 2.04 × equity premium 4.5% = 13.5% cost of equity; weighted, 13.5%.

Use 13.5%
Equity value $282.53m ▼ below market cap $5.06b
Base case value per share $1.51 equity value ÷ 186.68m shares
Current price $27.10 market price per share
Below today’s price 94.4% downside at the base case’s assumptions

How we got there$220.10m 10 years of cash to equity+$152.12m terminal value−$89.69m net debt=$282.53m equity value÷186.68m shares=$1.51 per share

Valuation against its own history

Today’s multiple against its 5- and 10-year averages and the industry median (Semiconductors).

Multiple Current 5Y avg 10Y avg vs 10Y avg Industry median vs industry 10Y range
P/E 169.38× 63.21× 47.25× 258% above 36.98× 358% above
P/FCF 48.38× 96.32× 62.77× 23% below 43.80× 10% above
P/B 5.03× 6.05× 4.64× 9% above 3.87× 30% above
EV/EBITDA 35.23× 52.29× 35.72× 1% below 20.84× 69% above
EV/Sales 5.10× 6.53× 4.74× 8% above 5.07× 1% above
P/E P/FCF P/B EV/EBITDA EV/Sales
29.99×85.87×141.75×197.63×10Y avg 62.77×201920202021202220232024202520262026

ALGM trades at 48.38× P/FCF, against a 10-year average of 62.77× (range 4.77×–214.82×). That is dearer than 63% of the last 8 year-end readings; re-rating to the average implies $35.15 per share.

Every growth rate on this page is the business’s — its cash flow, FFO or dividend — never its share price’s. A discounted-cash-flow model is only as good as its assumptions. Figures from the 10-K and 10-Q filings. Not investment advice.