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DCF Valuation
Base-case fair value
$11.80
Intrinsic $15.73 · 25% MOS
Current price: $47.96
Base-case summary
Our base-case DCF for Allegro Microsystems, Inc. (ALGM) projects 10 years of free cash flow growth at 7.7% for years 1–5 and 3.9% for years 6–10, anchored to 7.7% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $125M in trailing free cash flow, this produces an intrinsic value of $15.73 per share. A 25% safety margin gives a fair value of $11.80, suggesting the stock is currently 75% overvalued against the $47.96 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
$125M
Cash & equivalents
$169M
Total debt
$312M
Shares outstanding
185M