* Note: Prices are in Million (M) USD.
Description:
Astera Labs, Inc. designs, manufactures, and sells semiconductor-based connectivity solutions for cloud and AI infrastructure. The company is headquartered in Santa Clara, California.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $168 M
Debt : $35 M
EBITDA : $204 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: 42.59
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 4 overlapping fiscal years (max 20).Average Free Cash Flow: $82 M
Average Revenue: $361 M
Revenue Converted To Free Cash Flow (%): 22.8%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 15, 3 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2025-12-31): $853 M
Revenue 3 Years Ago (2022-12-31): $80 M
Total Growth over 3 Years: 967.4%
3-Year Revenue CAGR (Historical): 120.2%
Forward 5-Year CAGR (Tapered): 60.1%
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): $3.52
Trailing 12-Month Earnings Per Share (EPS): $2.47
Average Earnings Per Share (EPS): $2.99
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:
Using last 3 valid ROE years (max 20).Average ROE: -3.1%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $127.48
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: $20,290 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% 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 20 points to above Astera Labs, Inc. (ALAB) stock.
Fair Value PE
25, Industry Based PE
25, Growth Based PE
50, RCFC Based PE
22.77, Risk-Free Anchored PE (25% MoS)
18.16. Based on these 5 values, average assigned is
28.19. Value-Trades has assined P/E value
28.18. An average (Current Year EPS + Next Year EPS) earning per share is
$2.9935.
Fair value using multiple P/Es (blended): $84.37 (PE 28.19 × EPS $2.99)
So the Final Fair Value is: $84.37
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: $2.99
| Source |
P/E Ratio |
Implied Fair Value |
| Market (1 Yr Ago) | 90.41 | $270.64 |
| Value-Trades Assigned | 28.18 | $84.36 |
