Latest Ratios: P/E Ratio -702.6x · EV/EBITDA 96.1x · ROE -1.6%. (2019–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $10.5B | $5.6B | $4.7B | $5.2B | $9.3B | $5.4B | $4.8B | — | — |
| Enterprise Value | $10.6B | $5.7B | $4.9B | $5.3B | $9.0B | $5.2B | $4.6B | — | — |
| P/E Ratio → | -702.61 | — | — | 34.56 | 49.47 | 45.81 | 267.69 | — | — |
| P/S Ratio | 11.77 | 6.27 | 6.44 | 5.00 | 9.55 | 7.09 | 8.13 | — | — |
| P/B Ratio | 10.94 | 5.83 | 5.01 | 4.64 | 9.61 | 7.41 | 8.19 | — | — |
| P/FCF | 83.91 | 44.69 | 212.51 | 92.17 | 81.94 | 63.20 | 60.15 | — | — |
| P/OCF | 64.27 | 34.23 | 75.37 | 28.88 | 48.11 | 34.89 | 39.86 | — | — |
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 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 6.40 | 6.78 | 5.06 | 9.23 | 6.77 | 7.84 | — | — |
| EV / EBITDA | 96.10 | 51.69 | 109.92 | 19.85 | 35.36 | 28.12 | 76.64 | — | — |
| EV / EBIT | 248.27 | 133.52 | — | 25.84 | 42.05 | 36.35 | 1949.45 | — | — |
| EV / FCF | — | 45.64 | 223.77 | 93.28 | 79.22 | 60.41 | 58.00 | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 46.4% | 46.4% | 44.3% | 54.8% | 56.1% | 53.0% | 47.2% | 40.2% | 44.2% |
| Operating Margin | 4.8% | 4.8% | -2.7% | 18.7% | 20.9% | 17.8% | 2.1% | 8.1% | 13.8% |
| Net Profit Margin | -1.7% | -1.7% | -10.1% | 14.6% | 19.2% | 15.5% | 3.0% | 5.7% | 11.7% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|---|
| ROE | -1.6% | -1.6% | -7.1% | 14.6% | 22.0% | 18.1% | 2.9% | 6.0% | 14.4% |
| ROA | -1.1% | -1.1% | -4.9% | 11.3% | 18.1% | 14.6% | 2.3% | 4.7% | 11.3% |
| ROIC | 2.8% | 2.8% | -1.3% | 15.9% | 26.5% | 22.5% | 2.0% | 7.6% | 14.1% |
| ROCE | 3.3% | 3.3% | -1.5% | 16.2% | 22.5% | 19.3% | 1.9% | 8.0% | 15.4% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.30 | 0.30 | 0.40 | 0.24 | 0.04 | 0.06 | 0.04 | 0.14 | 0.07 |
| Debt / EBITDA | 2.60 | 2.60 | 8.24 | 1.03 | 0.17 | 0.22 | 0.41 | 0.73 | 0.27 |
| Net Debt / Equity | — | 0.12 | 0.27 | 0.06 | -0.32 | -0.33 | -0.29 | -0.20 | -0.10 |
| Net Debt / EBITDA | 1.07 | 1.07 | 5.53 | 0.24 | -1.22 | -1.30 | -2.85 | -1.10 | -0.36 |
| Debt / FCF | — | 0.95 | 11.26 | 1.11 | -2.72 | -2.80 | -2.16 | -3.60 | -2.50 |
| Interest Coverage | 1.28 | 1.28 | -1.82 | 19.10 | 91.47 | 57.32 | 0.62 | 485.35 | 83.12 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.45 | 3.45 | 4.30 | 4.85 | 4.03 | 4.91 | 3.69 | 2.99 | 3.53 |
| Quick Ratio | 2.21 | 2.21 | 2.66 | 3.48 | 3.11 | 4.08 | 2.94 | 2.14 | 2.27 |
| Cash Ratio | 1.16 | 1.16 | 1.08 | 1.80 | 2.13 | 2.71 | 1.69 | 1.43 | 0.96 |
| Asset Turnover | — | 0.63 | 0.51 | 0.69 | 0.82 | 0.86 | 0.79 | 0.79 | 0.96 |
| Inventory Turnover | 2.63 | 2.63 | 2.19 | 2.93 | 2.83 | 4.19 | 3.57 | 3.06 | 3.09 |
| Days Sales Outstanding | — | 38.24 | 42.59 | 43.54 | 48.91 | 57.33 | 58.56 | 51.71 | 58.42 |
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 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | 8.3% | — | — |
| Payout Ratio | — | — | — | — | — | — | 2228.0% | — | — |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | 2.9% | 2.0% | 2.2% | 0.4% | — | — |
| FCF Yield | 1.2% | 2.2% | 0.5% | 1.1% | 1.2% | 1.6% | 1.7% | — | — |
| Buyback Yield | 0.0% | 0.0% | 18.3% | 0.1% | 0.2% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 18.3% | 0.1% | 0.2% | 0.0% | 8.3% | — | — |
| Shares Outstanding | — | $185M | $188M | $195M | $194M | $192M | $190M | $189M | $188M |
Automotive cyclicality and margins
According to current market data, Allegro trades at a forward P/E of 108.96, a multiple that appears disconnected from recent net losses and suggests investors are pricing in aggressive long-term growth in xEV content rather than current operational performance or near-term cyclical recovery.
The elevated P/S ratio of 12.05 relative to historical norms implies that the market is assigning a significant growth premium to Allegro's specialized sensor portfolio. However, given the volatility in net income and the ongoing automotive inventory correction, this valuation may be vulnerable to downward revisions if design-win conversion rates fail to accelerate.
Based on reported figures, Allegro's ROIC has struggled to maintain positive momentum, hovering near 1.2% in 2026Q4, which indicates that the company is currently failing to generate returns on invested capital that exceed its likely cost of capital during this phase of heavy R&D investment.
The persistent decay in ROIC over the last ten quarters suggests that the company's capital allocation, particularly regarding recent acquisitions like Crocus Technology, has yet to yield the expected margin expansion. Investors should monitor whether this trend reverses as the company scales its TMR sensor production or if structural inefficiencies in the fab-lite model continue to suppress returns.
As reported in financial statements, the cash conversion cycle has remained elevated at 127 days in 2026Q4, driven primarily by a high days-inventory-outstanding metric that suggests the company is holding significant stock to mitigate supply chain risks in the volatile automotive semiconductor market.
The inability to compress the CCC below 127 days indicates that Allegro's working capital management is currently inefficient, tying up cash that could otherwise support R&D or debt reduction. This inventory dependence warrants further investigation into whether these levels are strategic buffers or a sign of slowing sell-through at the Tier 1 automotive level.
According to recent SEC filings, Allegro maintains a debt-to-equity ratio of 0.30, which, while manageable, is increasingly sensitive to earnings volatility as evidenced by the erratic interest coverage ratio that dipped into negative territory during periods of net losses.
While the current debt load does not appear to pose an immediate solvency risk, the reliance on external financing to bridge operational gaps during cyclical downturns is a concern. The company's ability to service debt remains highly dependent on the stabilization of operating margins, which are currently pressured by high fixed costs and competitive pricing.
The P/E ratio is frequently misapplied to Allegro's business model, as it obscures the impact of non-cash charges and acquisition-related integration costs that currently render GAAP earnings unrepresentative of the company's underlying cash-generating capability in the automotive sensor market.
Analysts should instead focus on EV/EBITDA or P/FCF to better gauge the company's operational health, as these metrics normalize for the capital-intensive nature of the fab-lite model and the non-recurring expenses associated with their R&D-heavy growth strategy. Relying on P/E in this context may lead to an inaccurate assessment of the company's true valuation relative to its peers.
Includes 30+ ratios · 8 years · Updated daily
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
See how regular investing compounds over time.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying ALGM stock.
Allegro MicroSystems, Inc.'s current P/E ratio is -702.6x. The historical average is 43.3x.
Allegro MicroSystems, Inc.'s current EV/EBITDA is 96.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 42.3x.
Allegro MicroSystems, Inc.'s return on equity (ROE) is -1.6%. The historical average is 8.7%.
Based on historical data, Allegro MicroSystems, Inc. is trading at a P/E of -702.6x. Compare with industry peers and growth rates for a complete picture.
Allegro MicroSystems, Inc. has 46.4% gross margin and 4.8% operating margin.
Allegro MicroSystems, Inc.'s Debt/EBITDA ratio is 2.6x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.