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Allegro MicrosystemsALGM +3.91%85 Debt-to-EBITDA is 1.70 as of Jun. 2026, which is 179% above its 10-year median of 0.61. GuruFocus rates ALGM with a GF Score™ of 85/100 and a GF Value™ of $30.31 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 733 Semiconductors companies, Allegro Microsystems ranks worse than 64.94% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Allegro Microsystems's Debt-to-EBITDA or its related term are showing as below:
ALGM'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.16 Med: 0.61 Max: 40.18
Current: 2.67
During the past 8 years, the highest Debt-to-EBITDA Ratio of Allegro Microsystems was 40.18. The lowest was 0.16. And the median was 0.61.
ALGM's Debt-to-EBITDA is ranked worse than 64.94% of 733
companies
in the Semiconductors industry
Industry Median: 1.45
vs ALGM: 2.67
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Allegro Microsystems Debt-to-EBITDA Related Terms
Allegro Microsystems Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Allegro Microsystems's Debt-to-EBITDA 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.
ALGM vs SWKS, SIMO, QRVO: Debt-to-EBITDA Comparison
For the Semiconductors subindustry, Allegro Microsystems's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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.
Allegro Microsystems Debt-to-EBITDA vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Allegro Microsystems's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Allegro Microsystems's Debt-to-EBITDA 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.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Jun. 2026) EBITDA data.
Allegro Microsystems (ALGM) has a Debt-to-EBITDA of 1.70 as of Jun. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Allegro Microsystems. This is 179% above median its historical median of 0.61. Over the past decade, Allegro Microsystems' Debt-to-EBITDA has ranged from 0.16 to 40.18. According to the industry distribution chart, Allegro Microsystems ranks #476 out of 733 companies in the Semiconductors industry, placing it in the top 64.9%.
Is Allegro Microsystems' Debt-to-EBITDA too high?
Allegro Microsystems' current Debt-to-EBITDA of 1.70 is 179% above median its 10-year median of 0.61. Over the past 10 years, this metric has ranged from a low of 0.16 to a high of 40.18. The Semiconductors industry median Debt-to-EBITDA is 1.45. Allegro Microsystems' value of 1.70 is 17.2% above this industry median. Based on the distribution chart, Allegro Microsystems ranks #476 out of 733 companies in the Semiconductors industry, which is below the industry midpoint. Overall, Allegro Microsystems has a GF Score™ of 85/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Allegro Microsystems' Debt-to-EBITDA compare to SWKS and SIMO?
According to the Semiconductors industry distribution chart, Allegro Microsystems ranks #476 out of 733 companies for Debt-to-EBITDA. This places Allegro Microsystems in the lower half of its industry. The industry median Debt-to-EBITDA is 1.45. Allegro Microsystems' value of 1.70 is 17.2% above this benchmark. Historically, Allegro Microsystems' own Debt-to-EBITDA has ranged from 0.16 to 40.18 over the past decade. While the company's 10-year median is 0.61 vs. the industry median of 1.45, Allegro Microsystems 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 Debt-to-EBITDA for a Semiconductors company?
The median Debt-to-EBITDA among Semiconductors companies is 1.45, based on 733 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Allegro Microsystems's current Debt-to-EBITDA of 1.70 is 17.2% 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 Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Allegro Microsystems. For the Semiconductors industry, the median Debt-to-EBITDA is 1.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Allegro Microsystems's current Debt-to-EBITDA is 1.70, which is 179% above median its own 10-year median of 0.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Allegro Microsystems stock overvalued right now?
Based on GuruFocus' analysis, Allegro Microsystems (ALGM) is currently considered Significantly Overvalued. The stock's GF Value™ is $30.31, compared to a current price of $44.13 — trading 45.6% above its estimated fair value. The current Debt-to-EBITDA is 1.70, which is 179% above median its 10-year median of 0.61 and 17.2% above the Semiconductors industry median of 1.45. Allegro Microsystems' overall GF Score™ is 85/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Allegro Microsystems (ALGM), the current Debt-to-EBITDA is 1.70 as of Jun. 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 Allegro Microsystems (ALGM) Overvalued in 2026?
Based on GuruFocus' analysis, Allegro Microsystems stock appears to be overvalued.
The current stock price of $44.13 is trading 45.6% above its estimated GF Value™ of $30.31.
GuruFocus considers Allegro Microsystems to be Significantly Overvalued.
Key valuation signals for ALGM:
Debt-to-EBITDA: 1.70 (179% above median its 10-year median of 0.61)
GF Value™: $30.31 vs. price of $44.13 (45.6% above fair value)
Industry Position: 17.2% above the Semiconductors median (#476 of 733)
No single metric tells the full story. See the ALGM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Allegro Microsystems Inc is a designer, developer, fabless manufacturer, and marketer of sensor ICs and application-specific analog power ICs for automotive and industrial markets. Its Sensor IC allows customers to precisely measure motion, speed, position, and current, and Power ICs include high-temperature and high-voltage capable motor drivers, power management, and LED driver ICs. Its products are divided into three categories: SENSE, which includes Current Sensors, Switches, and Latches, and Interface ICs among others; REGULATE, which includes Regulators, ClearPower Modules, and LED Drivers; and DRIVE, which includes BLDC Drivers, Brush DC, and others. Product-wise, the firm derives the majority of its revenue from sales of Magnetic sensors.
85GF Score
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Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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