Stock fact sheet · data as of
Allegro MicroSystems, Inc. (ALGM): fair value, margin of safety and Wheel Score
Ticker symbol ALGM · Technology · Semiconductors · United States · Growth
Is ALGM undervalued?
ALGM closed at 31.25 on 5 Nov 2026, more than 30% above the GLS average fair value of 7.61. 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 "below fair value" Wheel Trade Filter keeps names like this under 70.
There is a wide gap between EPV (1.84) and Payback Time (15.91). 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.
Ranked against every other company we cover, ALGM is clearly faster-growing than it is cheap, so the nightly engine files it under Growth (value score 9, growth score 75, out of 100).
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 | -89% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 4.48 | -86% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 8.71 | -72% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 3.75 | -88% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 9.24 | -70% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 13.66 | -56% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 15.91 | -49% | 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 | 1.84 | -94% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 0.2353 | -99% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 54.00 | +73% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Allegro MicroSystems, Inc. scores 8 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 "Piotroski 6 or more" Wheel Trade Filter with room to spare. On durability ALGM scores 5.2/10 on the GLS Moat - a middle reading; the Moat Score tab on the Quote page's Financials view shows which of the four parts hold it back.
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 1.8%.
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 57%, Power Integrated Circuits 43% (quarter Q2 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 | 8 / 9 | ROIC | -1.2% |
|---|---|---|---|
| GLS Moat | 5.2 / 10 | ROE | -1.6% |
| Debt / equity | 0.30 | ROA | -1.1% |
| Free-cash-flow yield | 1.8% | Payout ratio | 0% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 10 / 10 |
Wheel Score 37: Weak
With a Wheel Score of 37 Allegro MicroSystems, Inc. sits in the Weak band. It fails filter 3, below fair value - trades 310% above our fair value; Value (weak) is its weakest part.
Implied volatility is 70% on the near-the-money contracts 20-60 days out - above the 60% top of the sweet spot. It still passes the 25-80% filter, but the Wheel Score rewards it less because volatility this high usually comes with a reason. Chain open interest is 20,345 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 3.4M shares a day on a market cap of $5.8B, with a beta of 2.05 - 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 rates that weak.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Fails | trades 310% above our fair value |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Weak | 310% above fair value | |
| Premium | Good | implied volatility 70% | |
| Moat | Fair | moat 5.2/10 | |
| Health | Strong | Piotroski 8/9 | |
| Red Flags | Strong | Red Flags score 90/100 | |
| Option trading | Fair | 1,400 contracts a day, 20,345 open interest | |
| Stability | Weak | beta 2.05, $5.8B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for ALGM in the nightly calendar.
No analyst upgrades or downgrades were recorded in the last 30 days.
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 |
|---|---|---|---|---|---|
| CRUS Cirrus Logic, Inc. | 115.99 | 204.87 | +43% | 79Good | $5.8B |
| PI Impinj, Inc. | 180.17 | 23.08 | -681% | 33Weak | $5.6B |
| SIMO Silicon Motion Technology Corporation | 182.54 | 862.57 | +79% | 48Weak | $6.1B |
| MXL MaxLinear, Inc. | 56.85 | - | - | 20Weak | $5.2B |
| FORM FormFactor, Inc. | 85.24 | 47.06 | -81% | 33Weak | $6.7B |
| CAMT Camtek Ltd. | 101.46 | 31.30 | -224% | 30Weak | $4.7B |
| SYNA Synaptics Incorporated | 117.49 | 138.82 | +15% | 23Weak | $4.7B |
| SLAB Silicon Laboratories Inc. | 222.00 | 7.25 | -2962% | 23Weak | $7.4B |
| AMKR Amkor Technology, Inc. | 35.66 | 32.40 | -10% | 35Weak | $8.8B |
| RMBS Rambus Inc. | 82.90 | 71.23 | -16% | 37Weak | $8.9B |
| ONTO Onto Innovation Inc. | 184.82 | 81.97 | -125% | 31Weak | $9.1B |
| DIOD Diodes Incorporated | 79.46 | 48.35 | -64% | 33Weak | $3.7B |
Scan 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 top 10 stocks that pass all 9 Wheel Trade Filters, 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 31.25 the stock trades 310% above the GLS average fair value of 7.61 (data as of 5 Nov 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 37 out of 100 (Weak) - it fails Wheel Trade Filter 3. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for ALGM?
7.61 per share as of 5 Nov 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?
No upcoming earnings date is recorded for ALGM in our calendar as of 5 Nov 2026; the Calendars page is refreshed every morning.
Does ALGM have listed options, and how liquid are they?
Yes. The nightly snapshot found 60 listed contracts with 20,345 open interest across all expiries and implied volatility of 70% 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.