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In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
Allegro Microsystems's Net-Net Working Capital for the quarter that ended in Jun. 2026 was $-0.63.
The industry rank for Allegro Microsystems's Net-Net Working Capital or its related term are showing as below:
ALGM's Price-to-Net-Net-Working-Capital is not ranked *
in the Semiconductors industry.
Industry Median: 11.69 * Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.
Allegro Microsystems (NAS:ALGM) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
Allegro Microsystems Net-Net Working Capital Related Terms
Allegro Microsystems Net-Net Working Capital Historical Data
* Premium members only.
The historical data trend for Allegro Microsystems's Net-Net Working Capital 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.
Allegro Microsystems Net-Net Working Capital Chart
ALGM vs SWKS, SIMO, QRVO: Net-Net Working Capital Comparison
For the Semiconductors subindustry, Allegro Microsystems's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital 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 Price-to-Net-Net-Working-Capital vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Allegro Microsystems's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where Allegro Microsystems's Price-to-Net-Net-Working-Capital 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 calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of $-0.63 mean?
Allegro Microsystems (ALGM) has a Net-Net Working Capital of $-0.63 as of Jun. 2026. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Allegro Microsystems According to the industry distribution chart, Allegro Microsystems ranks #999999 out of 499 companies in the Semiconductors industry.
Is Allegro Microsystems' Net-Net Working Capital too high?
Allegro Microsystems' current Net-Net Working Capital is $-0.63. Based on the distribution chart, Allegro Microsystems ranks #999999 out of 499 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. Overall, Allegro Microsystems has a GF Score™ of 86/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Allegro Microsystems' Net-Net Working Capital compare to SWKS and SIMO?
According to the Semiconductors industry distribution chart, Allegro Microsystems ranks #999999 out of 499 companies for Net-Net Working Capital. This places Allegro Microsystems in the lower half of its industry. The industry median Net-Net Working Capital is 11.69. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for a Semiconductors company?
The median Net-Net Working Capital among Semiconductors companies is 11.69, based on 499 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Allegro Microsystems For the Semiconductors industry, the median Net-Net Working Capital is 11.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Allegro Microsystems's current Net-Net Working Capital is $-0.63. 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 Modestly Overvalued. The stock's GF Value™ is $30.47, compared to a current price of $37.16 — trading 22% above its estimated fair value. The current Net-Net Working Capital is $-0.63. Allegro Microsystems' overall GF Score™ is 86/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For Allegro Microsystems (ALGM), the current Net-Net Working Capital is $-0.63 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 $37.16 is trading 22% above its estimated GF Value™ of $30.47.
GuruFocus considers Allegro Microsystems to be Modestly Overvalued.
Key valuation signals for ALGM:
Net-Net Working Capital: $-0.63
GF Value™: $30.47 vs. price of $37.16 (22% above fair value)
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.
86GF Score
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Net-Net Working Capital is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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