* Note: Prices are in Million (M) USD.
Description:
Astera Labs, Inc. (ticker: ALAB) is a leading provider of semiconductor-based connectivity solutions, specifically designed to meet the demands of the rapidly expanding cloud computing and artificial intelligence sectors. Headquartered in Santa Clara, California, the company leverages cutting-edge technology to facilitate high-performance applications in data centers and AI infrastructure. With a strong focus on innovation and operational efficiency, Astera Labs is strategically positioned to play a crucial role in the evolution of modern computing landscapes, representing a compelling investment opportunity for institutional investors targeting next-generation technology markets.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $140 M
Debt : $4 M
EBITDA : $123 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: Technology
Industry: Semiconductors
Based on sector, 5 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 69.88
Since Forward PE Ratio is greater than 35, 0 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 3 overlapping fiscal years (max 20).Average Free Cash Flow: $16 M
Average Revenue: $197 M
Revenue Converted To Free Cash Flow (%): 8.0%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $396 M
Revenue 2 Years Ago (2022-12-31): $80 M
Total Growth over 2 Years: 396.2%
2-Year Revenue CAGR (Historical): 122.7%
Forward 5-Year CAGR (Tapered): 61.4%
Since historical Revenue CAGR is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Error: This stock does not have 5 years of share count data.Using default values for calculation.
Based on default values, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $2.37
Trailing 12-Month Earnings Per Share (EPS): $1.78
Average Earnings Per Share (EPS): $2.07
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0.00%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Insufficient valid ROE years (found 2; need ≥ 3). Dropping ROE-based PE.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $144.94
52-Week Low: $47.12
Threshold Price (15% Above 52-Week Low): $54.19
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $27,232 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on high P/E, we recommend do not exceed 0.20% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
No positive free cash flow found (TTM or annual) to compute Owners' Earnings per share.
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 18 points to above Astera Labs, Inc. Common Stock (ALAB) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• Growth Based PE 50.00 (>2× median)
Further research is recommended; please use your own due diligence.
In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Fair Value PE
20, Industry Based PE
25, Growth Based PE
50, RCFC Based PE
7.97, Risk-Free Anchored PE (25% MoS)
18.34. Based on these 5 values, average assigned is
24.26. Value-Trades has assined P/E value
24.26. An average (Current Year EPS + Next Year EPS) earning per share is
$2.0741.
Note: Final fair value is the lesser of the blended PE-based fair value and the simple average PE × EPS fair value.Fair value using multiple P/Es (blended): $50.32 (PE 24.26 × EPS $2.07)
Fair value using simple average PE × EPS: $50.32 (PE 24.26 × EPS $2.07)
Lesser of these two: $50.32
So the Final Fair Value is: $50.32
Understanding the Value-Trades P/E Blend (click to expand)
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What goes into the blended P/E?
- 20-Year Avg P/E — Long-run market baseline; conservative anchor.
- Fair Value P/E — Score-based (cash, debt, sector, etc.).
- Industry P/E — Peer group norm.
- Growth-Based P/E — Uses tapered growth rates, floored at 15.
- RCFC-Based P/E — Maps cash conversion efficiency.
- ROE-Based P/E — Higher ROE supports higher multiples.
- Risk-Free Anchored P/E — Macro floor tied to 10y yield w/ MoS.
How it works
- Extreme values are clamped/filtered (IQR method).
- Anchors (20y avg, RCFC/ROE, risk-free) are always kept if valid.
- Final fair value = min(Blended PE × EPS, Avg PE × EPS).
P/E Reference Summary
Using EPS: $2.07
| Source |
P/E Ratio |
Implied Fair Value |
| Market (1 Yr Ago) | 127.96 | $265.40 |
| Value-Trades Assigned | 24.26 | $50.32 |
