Valens SemiconductorVLN -7.34%71 Current Ratio is 5.21 as of Mar. 2026, which is 39% below its 10-year median of 8.60. GuruFocus rates VLN with a GF Score™ of 71/100 and a GF Value™ of $2.08 (Fairly Valued). The stock has 6 warning signs investors should review. Among 1,029 Semiconductors companies, Valens Semiconductor ranks better than 80.76% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Valens Semiconductor's current ratio for the quarter that ended in Mar. 2026 was 5.21.
Valens Semiconductor has a current ratio of 5.21. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.
The historical rank and industry rank for Valens Semiconductor's Current Ratio or its related term are showing as below:
VLN'
s Current Ratio Range Over the Past 10 Years
Min: 5.17 Med: 8.6 Max: 12.89
Current: 5.21
During the past 7 years, Valens Semiconductor's highest Current Ratio was 12.89. The lowest was 5.17. And the median was 8.60.
VLN's Current Ratio is ranked better than 80.76% of 1029
companies
in the Semiconductors industry
Industry Median: 2.49
vs VLN: 5.21
Valens Semiconductor (NYSE:VLN) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Valens Semiconductor Current Ratio Related Terms
Valens Semiconductor Current Ratio Historical Data
* Premium members only.
The historical data trend for Valens Semiconductor's Current Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Semiconductors subindustry, Valens Semiconductor's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Valens Semiconductor Current Ratio vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Valens Semiconductor's Current Ratio distribution charts can be found below:
* The bar in red indicates where Valens Semiconductor's Current Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Valens Semiconductor (VLN) has a Current Ratio of 5.21 as of Mar. 2026. This is 39% below median its historical median of 8.60. Over the past decade, Valens Semiconductor's Current Ratio has ranged from 5.17 to 12.89. According to the industry distribution chart, Valens Semiconductor ranks #198 out of 1029 companies in the Semiconductors industry, placing it in the top 19.2%.
Is Valens Semiconductor's Current Ratio too high?
Valens Semiconductor's current Current Ratio of 5.21 is 39% below median its 10-year median of 8.60. Over the past 10 years, this metric has ranged from a low of 5.17 to a high of 12.89. The Semiconductors industry median Current Ratio is 2.49. Valens Semiconductor's value of 5.21 is 109.2% above this industry median. Based on the distribution chart, Valens Semiconductor ranks #198 out of 1029 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Valens Semiconductor has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Valens Semiconductor's Current Ratio compare to QUIK and GSIT?
According to the Semiconductors industry distribution chart, Valens Semiconductor ranks #198 out of 1029 companies for Current Ratio. This places Valens Semiconductor in the top 19% of its industry — outperforming the majority of peers. The industry median Current Ratio is 2.49. Valens Semiconductor's value of 5.21 is 109.2% above this benchmark. Historically, Valens Semiconductor's own Current Ratio has ranged from 5.17 to 12.89 over the past decade. While the company's 10-year median is 8.60 vs. the industry median of 2.49, Valens Semiconductor has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Current Ratio for a Semiconductors company?
The median Current Ratio among Semiconductors companies is 2.49, based on 1,029 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Valens Semiconductor's current Current Ratio of 5.21 is 109.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Semiconductors industry, the median Current Ratio is 2.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Valens Semiconductor's current Current Ratio is 5.21, which is 39% below median its own 10-year median of 8.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Valens Semiconductor stock overvalued right now?
Based on GuruFocus' analysis, Valens Semiconductor (VLN) is currently considered Fairly Valued. The stock's GF Value™ is $2.08, compared to a current price of $2.02 — trading 2.9% below its estimated fair value. The current Current Ratio is 5.21, which is 39% below median its 10-year median of 8.60 and 109.2% above the Semiconductors industry median of 2.49. Valens Semiconductor's overall GF Score™ is 71/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Valens Semiconductor (VLN), the current Current Ratio is 5.21 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Valens Semiconductor (VLN) Overvalued in 2026?
Based on GuruFocus' analysis, Valens Semiconductor stock appears to be undervalued.
The current stock price of $2.02 is trading 2.9% below its estimated GF Value™ of $2.08.
GuruFocus considers Valens Semiconductor to be Fairly Valued.
Key valuation signals for VLN:
Current Ratio: 5.21 (39% below median its 10-year median of 8.60)
GF Value™: $2.08 vs. price of $2.02 (2.9% below fair value)
Industry Position: 109.2% above the Semiconductors median (#198 of 1029)
No single metric tells the full story. See the VLN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Valens Semiconductor Ltd is a provider of semiconductor products, pushing the boundaries of connectivity by enabling long-reach, high-speed video, and data transmission for the audio-video and automotive industries. It operates in two segments: Cross Industry Business, which includes solutions for the non-automotive verticals, including audio-video, industrial, machine vision and medical markets, that deliver superior, plug-and-play convergence and distribution of different interfaces, through a single long-distance category cable; and Automotive segment products enable safe and resilient high-speed in-vehicle connectivity for car architectures, realizing the vision of connected and autonomous cars. The company's geographical revenue is derived from Hungary.
71GF Score
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