Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Astera LabsALAB +2.81%15 Degree of Operating Leverage is 5.55 as of Jun. 2026. GuruFocus rates ALAB with a GF Score™ of 15/100. The stock has 3 warning signs investors should review. Among 1,017 Semiconductors companies, Astera Labs ranks worse than 79.94% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Astera Labs's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 5.55. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Astera Labs's Degree of Operating Leverage or its related term are showing as below:
ALAB's Degree of Operating Leverage is ranked worse than 79.94% of 1017
companies
in the Semiconductors industry
Industry Median: 0.98
vs ALAB: 5.55
Astera Labs (NAS:ALAB) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
Astera Labs Degree of Operating Leverage Related Terms
Astera Labs Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Astera Labs's Degree of Operating Leverage 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.
ALAB vs NXPI, CRDO, CBRS: Degree of Operating Leverage Comparison
For the Semiconductors subindustry, Astera Labs's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage 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.
Astera Labs Degree of Operating Leverage vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Astera Labs's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Astera Labs's Degree of Operating Leverage 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.
** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Operating Leverage of 5.55 mean?
Astera Labs (ALAB) has a Degree of Operating Leverage of 5.55 as of Jun. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Astera Labs and its competitors. According to the industry distribution chart, Astera Labs ranks #813 out of 1017 companies in the Semiconductors industry, placing it in the top 79.9%.
Is Astera Labs' Degree of Operating Leverage too high?
Astera Labs' current Degree of Operating Leverage is 5.55. The Semiconductors industry median Degree of Operating Leverage is 0.98. Astera Labs' value of 5.55 is 466.3% above this industry median. Based on the distribution chart, Astera Labs ranks #813 out of 1017 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. Overall, Astera Labs has a GF Score™ of 15/100, reflecting its overall financial health beyond just this single metric.
How does Astera Labs' Degree of Operating Leverage compare to NXPI and CRDO?
According to the Semiconductors industry distribution chart, Astera Labs ranks #813 out of 1017 companies for Degree of Operating Leverage. This places Astera Labs in the lower half of its industry. The industry median Degree of Operating Leverage is 0.98. Astera Labs' value of 5.55 is 466.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Semiconductors company?
The median Degree of Operating Leverage among Semiconductors companies is 0.98, based on 1,017 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Astera Labs's current Degree of Operating Leverage of 5.55 is 466.3% 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 Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Astera Labs and its competitors. For the Semiconductors industry, the median Degree of Operating Leverage is 0.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Astera Labs's current Degree of Operating Leverage is 5.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Astera Labs stock overvalued right now?
Astera Labs (ALAB) has a current Degree of Operating Leverage of 5.55. The current Degree of Operating Leverage is 5.55 and 466.3% above the Semiconductors industry median of 0.98. Astera Labs' overall GF Score™ is 15/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Astera Labs (ALAB), the current Degree of Operating Leverage is 5.55 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.
Astera Labs Inc designs and delivers semiconductor-based connectivity solutions for cloud and AI infrastructure. Its Intelligent Connectivity Platform integrates semiconductor technology, microcontrollers, sensors, and software to enhance performance, scalability, and data management. The company offers products such as integrated circuits (ICs), boards, and modules, catering to hyperscalers and system OEMs. The company's solutions focus on data, network, and memory management in AI-driven platforms. Geographically, the company operates in Singapore, China, Taiwan, and United States, of which maximum revenue is derived from United States.
15GF Score
Get the complete analysis for ALAB
Degree of Operating Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ALAB has been successfully added to your 
