Stock fact sheet · data as of
Allegro MicroSystems, Inc. (ALGM): fair value, margin of safety and Wheel Score
Technology · Semiconductors · United States · High Growth
Is ALGM undervalued?
ALGM closed at 32.36 on 16 Oct 2026, more than 30% above the GLS average fair value of 4.54. Only 0 of the 8 models that produced a value sit above the price. By our models the shares are priced well beyond what the filed earnings, cash flow and book value support; the Sunday Scan drops names like this at the "below fair value" rule.
There is a wide gap between EPV (0.8492) and 10 Cap (10.63). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files ALGM under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.
Nine valuation models for ALGM
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 3.32 | -90% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 2.99 | -91% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 4.37 | -86% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 1.91 | -94% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 4.68 | -86% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 10.63 | -67% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 7.57 | -77% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 0.8492 | -97% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 0.2354 | -99% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 55.29 | +71% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Allegro MicroSystems, Inc. scores 7 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. A GLS Moat score of 2.8/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are thin or negative - ROIC -1.2%, ROE -1.6%, ROA -1.1% - with debt at 0.30 times equity and a free-cash-flow yield of 1.5%.
Allegro MicroSystems, Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Magnetic Sensors And Other 58%, Power Integrated Circuits 42% (quarter Q1 FY2027).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 10/10 on the GLS smart-money scales; the last recorded Congressional buy was on 29 Sep 2026.
| Piotroski F-score | 7 / 9 | ROIC | -1.2% |
|---|---|---|---|
| GLS Moat | 2.8 / 10 | ROE | -1.6% |
| Debt / equity | 0.30 | ROA | -1.1% |
| Free-cash-flow yield | 1.5% | Payout ratio | 0% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 10 / 10 |
Wheel Score 52: Fair
A Wheel Score of 52 puts Allegro MicroSystems, Inc. in the Fair band - below the 70 the Sunday Scan requires. Value 0/25, Health 16/20, Moat 4/15, Premium 16/20 and Stability 17/20; the weakest part is Value (0/25).
Implied volatility is 76% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (16 of 20) because volatility this high usually comes with a reason. Chain open interest is 27,137 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 3.2M shares a day on a market cap of $6.0B, with a beta of 1.99 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 17 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -613% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 4 / 15 | moat 2.8/10 | |
| Premium | 16 / 20 | implied volatility 76% | |
| Stability | 17 / 20 | 3.2M shares/day, $6.0B cap, beta 1.99 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Allegro MicroSystems, Inc. reports earnings on 29 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Semiconductors
The 12 companies below are the closest to Allegro MicroSystems, Inc. by market cap within the Semiconductors industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| CAMT Camtek Ltd. | 131.38 | 30.01 | -338% | 45Weak | $6.1B |
| PI Impinj, Inc. | 192.30 | 21.86 | -780% | 40Weak | $5.9B |
| CRUS Cirrus Logic, Inc. | 108.40 | 222.50 | +51% | 92Prime | $5.4B |
| MXL MaxLinear, Inc. | 78.18 | 0.7046 | -10995% | 32Weak | $7.1B |
| SLAB Silicon Laboratories Inc. | 221.09 | 7.51 | -2842% | 39Weak | $7.4B |
| SIMO Silicon Motion Technology Corporation | 223.58 | 708.47 | +68% | 70Good | $7.5B |
| SYNA Synaptics Incorporated | 117.36 | 138.50 | +15% | 45Weak | $4.7B |
| KLIC Kulicke and Soffa Industries, Inc. | 83.05 | 20.15 | -312% | 52Fair | $4.3B |
| FORM FormFactor, Inc. | 113.34 | 32.73 | -246% | 57Fair | $8.9B |
| VSH Vishay Intertechnology, Inc. | 28.89 | 10.38 | -178% | 49Weak | $4.1B |
| DIOD Diodes Incorporated | 85.36 | 51.08 | -67% | 53Fair | $3.9B |
| ACMR ACM Research, Inc. | 58.09 | 63.18 | +8% | 45Weak | $3.8B |
Screen the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about ALGM
Is ALGM undervalued right now?
No: at 32.36 the stock trades 613% above the GLS average fair value of 4.54 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of ALGM and what does it mean?
ALGM scores 52 out of 100 (Fair). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for ALGM?
4.54 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Allegro MicroSystems, Inc. report earnings next?
The next earnings report is due on 29 Oct 2026 (before the open), 13 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does ALGM have listed options, and how liquid are they?
Yes. The nightly snapshot found 522 listed contracts with 27,137 open interest across all expiries and implied volatility of 76% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.