Latest Ratios: P/E Ratio 210.8x · EV/EBITDA 243.8x · ROE 18.8%. (2022–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Market Cap | $44.1B | $29.9B | $17.4B | — | — |
| Enterprise Value | $43.9B | $29.7B | $17.3B | — | — |
| P/E Ratio → | 210.79 | 136.36 | — | — | — |
| P/S Ratio | 51.70 | 35.04 | 43.87 | — | — |
| P/B Ratio | 33.86 | 21.90 | 18.02 | — | — |
| P/FCF | 156.44 | 106.01 | 169.73 | — | — |
| P/OCF | 138.05 | 93.55 | 127.20 | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| EV / Revenue | — | 34.88 | 43.67 | — | — |
| EV / EBITDA | 243.81 | 164.98 | — | — | — |
| EV / EBIT | 253.41 | 136.32 | — | — | — |
| EV / FCF | — | 105.54 | 168.97 | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Gross Margin | 75.7% | 75.7% | 76.4% | 68.9% | 73.5% |
| Operating Margin | 20.3% | 20.3% | -29.3% | -25.5% | -75.4% |
| Net Profit Margin | 25.7% | 25.7% | -21.1% | -22.7% | -73.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| ROE | 18.8% | 18.8% | -14.9% | -72.8% | — |
| ROA | 16.9% | 16.9% | -13.3% | -12.9% | -27.6% |
| ROIC | 12.3% | 12.3% | -17.4% | -19.2% | — |
| ROCE | 14.7% | 14.7% | -20.6% | -17.7% | -35.1% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Debt / Equity | 0.03 | 0.03 | 0.00 | 0.02 | — |
| Debt / EBITDA | 0.19 | 0.19 | — | — | — |
| Net Debt / Equity | — | -0.10 | -0.08 | -0.27 | — |
| Net Debt / EBITDA | -0.73 | -0.73 | — | — | — |
| Debt / FCF | — | -0.47 | -0.76 | — | — |
| Interest Coverage | — | — | — | — | — |
Net cash position: cash ($168M) exceeds total debt ($35M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Current Ratio | 10.24 | 10.24 | 11.71 | 5.30 | 5.14 |
| Quick Ratio | 9.79 | 9.79 | 11.21 | 4.61 | 4.42 |
| Cash Ratio | 8.94 | 8.94 | 10.56 | 4.26 | 4.07 |
| Asset Turnover | — | 0.56 | 0.38 | 0.59 | 0.38 |
| Inventory Turnover | 3.51 | 3.51 | 2.17 | 1.49 | 0.73 |
| Days Sales Outstanding | — | 35.62 | 35.75 | 26.27 | 48.99 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Earnings Yield | 0.5% | 0.7% | — | — | — |
| FCF Yield | 0.6% | 0.9% | 0.6% | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $180M | $131M | $153M | $130M |
Includes 30+ ratios · 4 years · Updated daily
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DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying ALAB stock.
Astera Labs, Inc. Common Stock's current P/E ratio is 210.8x. The historical average is 136.4x. This places it at the 100th percentile of its historical range.
Astera Labs, Inc. Common Stock's current EV/EBITDA is 243.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA.
Astera Labs, Inc. Common Stock's return on equity (ROE) is 18.8%. The historical average is -22.9%.
Based on historical data, Astera Labs, Inc. Common Stock is trading at a P/E of 210.8x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Astera Labs, Inc. Common Stock has 75.7% gross margin and 20.3% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Astera Labs, Inc. Common Stock's Debt/EBITDA ratio is 0.2x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Extreme valuation and insider selling
Metrics are mathematically derived from official filings.
Premium Pricing for Hypergrowth
ALAB trades at 264.6x trailing P/E and 306.2x EV/EBITDA, as per recent filings, implying the market expects sustained triple-digit growth and margin expansion well beyond current levels.
The forward P/E of 82.1 still embeds aggressive expectations, suggesting that any deceleration in the AI infrastructure buildout could trigger a sharp de-rating. Compared to Marvell's 72.4x P/E, ALAB's premium reflects its pure-play status, but the gap appears to price in flawless execution over multiple years.
Margin Resilience Amid Mix Shift
Gross margin held at 73.3% in Q2 2026, down from 76.3% in Q1, as reported in financial statements, yet operating margin expanded to 22.7%, indicating strong operating leverage despite product mix changes.
The sequential gross margin decline may reflect a higher mix of Taurus modules, but the expansion in operating margin suggests that revenue growth is outpacing fixed cost increases. Net margin of 39.0% is flattered by a one-time tax benefit; investors should focus on operating margin as the cleaner measure of earning power.
ROIC Inflecting Sharply Upward
ROIC improved from -54.1% in Q1 2024 to 4.5% in Q2 2026, as per reported figures, signaling a transition from capital destruction to value creation, though the level remains modest relative to peers.
The improvement is driven by margin recovery rather than asset efficiency, as asset turnover remains low at 0.22x due to a cash-heavy balance sheet. As the company scales, ROIC should continue to rise if margins hold, but the current level still trails Cirrus Logic's 22.9% ROIC, highlighting room for improvement.
Working Capital Stretch from Rapid Scaling
Cash conversion cycle lengthened to 66 days in Q2 2026 from 45 days in Q1, as per balance sheet data, driven by a DSO increase to 38 days and DIO of 75 days, reflecting inventory builds for AI demand.
The rise in DSO suggests customers are taking longer to pay, possibly due to volume discounts or extended terms, while DIO remains elevated to secure supply. The negative working capital swing of $143.5M in Q2, as noted in the cash flow analysis, indicates that growth is consuming cash, a trend that may moderate as the supply chain stabilizes.
Debt-Free Balance Sheet Provides Flexibility
ALAB carries negligible debt, with D/E at 0.03 in Q1 2026 and zero debt in Q2, as reported in SEC filings, and interest coverage is not a concern given minimal interest expense.
The absence of debt means the company is insulated from rising interest rates and has ample capacity to fund R&D or strategic M&A. However, the high valuation implies that equity issuance or acquisitions could be dilutive, so investors should monitor capital allocation decisions.
Ample Liquidity Buffer Despite Cash Dip
Current ratio stands at 10.05 in Q2 2026, as per financial statements, with cash of $111.5M down from $421.1M in Q2 2024, indicating a strong liquidity position that can absorb operational shocks.
The quick ratio of 9.36 confirms that liquidity is not dependent on inventory, which is critical given the high DIO. Even if AI spending were to slow sharply, the company could fund operations for several quarters without external financing, though the cash burn from working capital in Q2 warrants monitoring.
Pure-Play Premium vs. Diversified Peers
ALAB's gross margin of 73.3% and net margin of 39.0% in Q2 2026, as reported, far exceed Marvell's 32.6% net margin, but its ROIC of 4.5% lags Cirrus Logic's 22.9%, reflecting its early scaling stage.
The valuation premium over Marvell and Broadcom is justified by faster growth, but the gap in ROIC suggests that ALAB has not yet proven its ability to generate returns on capital comparable to more mature peers. The structural advantage of a pure-play focus may narrow as competitors like Marvell intensify their retimer efforts.
Misapplied P/E in High-Growth Context
The trailing P/E of 264.6 is often cited as extreme, but it is distorted by stock-based compensation and a one-time tax benefit, as per income statement data, making forward EV/EBITDA a more reliable gauge.
For a company growing revenue over 100% annually, the trailing P/E is backward-looking and penalizes heavy SBC, which is a real cost but non-cash. Investors should use EV/EBITDA or EV/Sales to compare against peers, and adjust for SBC to assess true cash earnings power. The forward P/E of 82.1 still implies high expectations, but it is less misleading than the trailing multiple.