Allegro MicrosystemsInc Valuation
| ALGM Stock | USD 28.77 2.20 8.28% |
At this time, the firm appears to be undervalued. Allegro MicrosystemsInc shows a prevailing Real Value of $32.88 per share. The current price of the firm is $28.77. Our model approximates the value of Allegro MicrosystemsInc from analyzing the firm fundamentals such as Profit Margin of 0.21 %, return on equity of 0.22, and Current Valuation of 5.19 B as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor obtaining undervalued instruments and abandoning overvalued instruments since, at some point, asset prices and their ongoing real values will blend. Key fundamental drivers impacting Allegro MicrosystemsInc's valuation include:
Price Book 4.5701 | Enterprise Value 5.2 B | Enterprise Value Ebitda 16.6387 | Price Sales 4.8074 | Forward PE 34.8432 |
Undervalued
Today
Please note that Allegro MicrosystemsInc's price fluctuation is very steady at this time. Calculation of the real value of Allegro MicrosystemsInc is based on 3 months time horizon. Increasing Allegro MicrosystemsInc's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Allegro MicrosystemsInc is useful when determining the fair value of the Allegro stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Allegro MicrosystemsInc. Since Allegro MicrosystemsInc is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Allegro Stock. However, Allegro MicrosystemsInc's 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 28.77 | Real 32.88 | Target 50.57 | Hype 26.56 | Naive 25.84 |
The real value of Allegro Stock, also known as its intrinsic value, is the underlying worth of Allegro MicrosystemsInc Company, which is reflected in its stock price. It is based on Allegro MicrosystemsInc's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Allegro MicrosystemsInc's 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 MicrosystemsInc's 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 MicrosystemsInc 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 MicrosystemsInc more accurately as focusing exclusively on Allegro MicrosystemsInc's 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 MicrosystemsInc's intrinsic value based on its ongoing forecasts of Allegro MicrosystemsInc's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Allegro MicrosystemsInc's closest peers. When choosing an evaluation method for Allegro MicrosystemsInc, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Allegro MicrosystemsInc Investments |
|
Allegro Valuation Trend
Knowing Allegro MicrosystemsInc's actual value is paramount for traders to make sound investment determinations. Allegro MicrosystemsInc's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Allegro MicrosystemsInc's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Allegro MicrosystemsInc's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Allegro Market Cap
Allegro MicrosystemsInc is rated below average in market capitalization category among related companies. Market capitalization of Information Technology industry is presently estimated at about 306.2 Billion. Allegro MicrosystemsInc claims roughly 5.13 Billion in market capitalization contributing just under 2% to equities under Information Technology industry.Allegro MicrosystemsInc Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Allegro MicrosystemsInc's current stock value. Our valuation model uses many indicators to compare Allegro MicrosystemsInc value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Allegro MicrosystemsInc competition to find correlations between indicators driving Allegro MicrosystemsInc's intrinsic value. More Info.Allegro MicrosystemsInc is rated third in price to earning category among related companies. It is rated below average in price to book category among related companies fabricating about 0.04 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Allegro MicrosystemsInc is roughly 28.10 . As of the 24th of April 2024, Price To Book Ratio is likely to drop to 5.78. Comparative valuation analysis is a catch-all model that can be used if you cannot value Allegro MicrosystemsInc by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Allegro MicrosystemsInc's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Allegro MicrosystemsInc's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Allegro MicrosystemsInc's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Allegro MicrosystemsInc and how it compares across the competition.
About Allegro MicrosystemsInc Valuation
The stock valuation mechanism determines the current worth of Allegro MicrosystemsInc on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Allegro MicrosystemsInc. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Allegro MicrosystemsInc based exclusively on its fundamental and basic technical indicators. By analyzing Allegro MicrosystemsInc's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Allegro MicrosystemsInc's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Allegro MicrosystemsInc. We calculate exposure to Allegro MicrosystemsInc's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Allegro MicrosystemsInc's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 628 M | 399 M | |
| Pretax Profit Margin | 0.20 | 0.21 | |
| Operating Profit Margin | 0.19 | 0.10 | |
| Net Profit Margin | 0.17 | 0.09 | |
| Gross Profit Margin | 0.50 | 0.38 |
8 Steps to conduct Allegro MicrosystemsInc's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Allegro MicrosystemsInc's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Allegro MicrosystemsInc's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Allegro MicrosystemsInc's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Allegro MicrosystemsInc's revenue streams: Identify Allegro MicrosystemsInc's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Allegro MicrosystemsInc's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Allegro MicrosystemsInc's growth potential: Evaluate Allegro MicrosystemsInc's management, business model, and growth potential.
- Determine Allegro MicrosystemsInc's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Allegro MicrosystemsInc's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Allegro MicrosystemsInc Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Allegro MicrosystemsInc 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 | 193.7 M | |
| Quarterly Earnings Growth Y O Y | -0.485 | |
| Forward Price Earnings | 34.8432 |
Allegro MicrosystemsInc Current Valuation Indicators
Valuation refers to the process of determining the present value of Allegro MicrosystemsInc and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Allegro we look at many different elements of the entity such as Allegro's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Allegro MicrosystemsInc's valuation analysis is also 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 MicrosystemsInc's 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 MicrosystemsInc, 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 MicrosystemsInc's 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 MicrosystemsInc's worth.When determining whether Allegro MicrosystemsInc is a strong investment it is important to analyze Allegro MicrosystemsInc's 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 MicrosystemsInc's 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 MicrosystemsInc. Also, note that the market value of any company could be tightly coupled 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 MicrosystemsInc guide.Note that the Allegro MicrosystemsInc information on this page should be used as a complementary analysis to other Allegro MicrosystemsInc's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Complementary Tools for Allegro Stock analysis
When running Allegro MicrosystemsInc's price analysis, check to measure Allegro MicrosystemsInc's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Allegro MicrosystemsInc is operating at the current time. Most of Allegro MicrosystemsInc's value examination focuses on studying past and present price action to predict the probability of Allegro MicrosystemsInc's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Allegro MicrosystemsInc's price. Additionally, you may evaluate how the addition of Allegro MicrosystemsInc to your portfolios can decrease your overall portfolio volatility.
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |
Is Allegro MicrosystemsInc's industry 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 MicrosystemsInc. 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 MicrosystemsInc 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 1.14 | Revenue Per Share 5.611 | Quarterly Revenue Growth 0.025 | Return On Assets 0.1118 |
The market value of Allegro MicrosystemsInc 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 MicrosystemsInc's value that differs from its market value or its book value, called intrinsic value, which is Allegro MicrosystemsInc's 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 MicrosystemsInc's market value can be influenced by many factors that don't directly affect Allegro MicrosystemsInc's 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 MicrosystemsInc's value and its price as these two are different measures arrived at by different means. Investors typically determine if Allegro MicrosystemsInc is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Allegro MicrosystemsInc's 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.