Latest Ratios: P/E Ratio 313.8x · EV/EBITDA 360.8x · ROE 18.8%. (2022–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Market Cap | $65.2B | $29.9B | $17.4B | — | — |
| Enterprise Value | $65.0B | $29.7B | $17.3B | — | — |
| P/E Ratio → | 313.84 | 136.36 | — | — | — |
| P/S Ratio | 76.45 | 35.04 | 43.87 | — | — |
| P/B Ratio | 50.42 | 21.90 | 18.02 | — | — |
| P/FCF | 231.31 | 106.01 | 169.73 | — | — |
| P/OCF | 204.11 | 93.55 | 127.20 | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| EV / Revenue | — | 34.88 | 43.67 | — | — |
| EV / EBITDA | 360.83 | 164.98 | — | — | — |
| EV / EBIT | 375.04 | 136.32 | — | — | — |
| EV / FCF | — | 105.54 | 168.97 | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Gross Margin | 75.7% | 75.7% | 76.4% | 68.9% | 73.5% |
| Operating Margin | 20.3% | 20.3% | -29.3% | -25.5% | -75.4% |
| Net Profit Margin | 25.7% | 25.7% | -21.1% | -22.7% | -73.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| ROE | 18.8% | 18.8% | -14.9% | -72.8% | — |
| ROA | 16.9% | 16.9% | -13.3% | -12.9% | -27.6% |
| ROIC | 12.3% | 12.3% | -17.4% | -19.2% | — |
| ROCE | 14.7% | 14.7% | -20.6% | -17.7% | -35.1% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Debt / Equity | 0.03 | 0.03 | 0.00 | 0.02 | — |
| Debt / EBITDA | 0.19 | 0.19 | — | — | — |
| Net Debt / Equity | — | -0.10 | -0.08 | -0.27 | — |
| Net Debt / EBITDA | -0.73 | -0.73 | — | — | — |
| Debt / FCF | — | -0.47 | -0.76 | — | — |
| Interest Coverage | — | — | — | — | — |
Net cash position: cash ($168M) exceeds total debt ($35M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Current Ratio | 10.24 | 10.24 | 11.71 | 5.30 | 5.14 |
| Quick Ratio | 9.79 | 9.79 | 11.21 | 4.61 | 4.42 |
| Cash Ratio | 8.94 | 8.94 | 10.56 | 4.26 | 4.07 |
| Asset Turnover | — | 0.56 | 0.38 | 0.59 | 0.38 |
| Inventory Turnover | 3.51 | 3.51 | 2.17 | 1.49 | 0.73 |
| Days Sales Outstanding | — | 35.62 | 35.75 | 26.27 | 48.99 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Earnings Yield | 0.3% | 0.7% | — | — | — |
| FCF Yield | 0.4% | 0.9% | 0.6% | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $180M | $131M | $153M | $130M |
Hyperscaler vertical integration risk
Based on current market data, ALAB trades at a P/S ratio of 78.21, which significantly exceeds broader semiconductor sector averages and suggests that investors are pricing in an aggressive, multi-year growth trajectory that assumes the company will maintain its dominant position in AI-specific connectivity hardware.
The forward P/E of 130.10 indicates that the market is willing to pay a substantial premium for the company's specialized role in the AI infrastructure build-out. This valuation appears to hinge on the assumption that the current design-win momentum will translate into sustained, high-margin revenue growth, leaving little room for error regarding competitive encroachment or hyperscaler internal silicon development.
According to recent financial statements, ALAB's ROIC has trended from negative territory in early 2024 to 3.6% in 2026Q1, reflecting the company's successful transition toward operational profitability as it scales its high-speed retimer and controller product lines within the competitive semiconductor landscape.
The improvement in ROIC suggests that the company is beginning to generate meaningful returns on its invested capital, though the current level remains modest compared to established, mature semiconductor peers. Investors should monitor whether this trend continues as the company increases its R&D spending to keep pace with the rapid two-year PCIe specification update cycle.
As reported in quarterly filings, ALAB's cash conversion cycle has fluctuated significantly, reaching 45 days in 2026Q1, which highlights the inherent challenges of managing inventory and receivables within a high-growth, supply-chain-dependent semiconductor business model that relies on a concentrated customer base.
The variability in the cash conversion cycle, particularly the swings in days inventory outstanding, suggests that the company is still refining its supply chain management as it scales. While the current efficiency levels appear manageable, any sustained increase in the CCC could indicate potential inventory buildup or difficulties in collecting receivables from key hyperscaler customers.
Based on the provided balance sheet data, ALAB maintains a negligible debt-to-equity ratio of 0.03, providing the company with a fortress-like balance sheet that effectively eliminates near-term interest coverage risks and allows management to focus capital allocation entirely on R&D and strategic growth initiatives.
The absence of significant debt is a major structural advantage for a high-growth firm, as it insulates the company from interest rate volatility and provides a substantial buffer against potential cyclical downturns in AI spending. This financial position warrants further investigation into whether management intends to utilize this capacity for strategic M&A to broaden their intellectual property portfolio.
The P/E ratio is frequently misapplied to ALAB, as it fails to account for the significant impact of stock-based compensation and the company's early-stage growth phase, which together distort earnings and mask the underlying cash-generating capability of the business model.
Investors should prioritize free cash flow margins and revenue growth rates over P/E multiples, as the latter is heavily influenced by non-cash expenses required to retain specialized engineering talent. Relying on P/E in this context may lead to an inaccurate assessment of the company's true economic profitability and its ability to self-fund future innovation.
Includes 30+ ratios · 4 years · Updated daily
DCF models, multiple analysis, and analyst estimates.
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Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying ALAB stock.
Astera Labs, Inc. Common Stock's current P/E ratio is 313.8x. The historical average is 136.4x. This places it at the 100th percentile of its historical range.
Astera Labs, Inc. Common Stock's current EV/EBITDA is 360.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA.
Astera Labs, Inc. Common Stock's return on equity (ROE) is 18.8%. The historical average is -22.9%.
Based on historical data, Astera Labs, Inc. Common Stock is trading at a P/E of 313.8x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Astera Labs, Inc. Common Stock has 75.7% gross margin and 20.3% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Astera Labs, Inc. Common Stock's Debt/EBITDA ratio is 0.2x, indicating low leverage. A ratio below 2x is generally considered financially healthy.