Allegro MicroSystems, Inc.

AI-generated fair value estimate for this company.

Method: 10-year two-stage unlevered FCF DCF: $125M normalized FCF base (FY2026 actual free cash flow, the most recent full fiscal year, reflecting the ongoing recovery from a FY2025 cyclical trough); 18% annual growth years 1-5 (in line with management's guided mid-teens-plus revenue growth and margin recovery); 12% years 6-10; 9.5% discount rate; 3% terminal growth; $130M net debt; 186.4M diluted shares.

Reasoning: Allegro's free cash flow has been highly cyclical (from $22M in FY2025 to $125M in FY2026) alongside auto/industrial semiconductor demand, but the company now has an additional AI/data-center growth driver on top of its core automotive sensing franchise, so I anchored to the most recent full-year FCF (post-trough) rather than a multi-year average that would understate the current trajectory, applying management's own mid-teens-plus growth guidance for the explicit period.