Astera Labs, Inc.

Where It Passes

Where It Falls Short

• Valuation0% pass✗ 28▾

  All 13 investors flag ALAB's valuation

  Price / 3-yr avg EPS

  ✗Graham<= 15x

  Price-to-Book Ratio27.7x

  ✗Graham<= 1.5x

  P/E x P/B

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)P/E 181.8x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value0.4%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=0.4%, ROC=15.0%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS181.8x

  ✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)

  Price / (CFO / Shares)118.3x

  ✗Dreman< 8x

  Price / Book Value per Share27.7x

  ✗Dreman< 1.2x✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)

  Valuation ReasonablenessP/E=181.8x, OE Yield=0.5%

  ✗MungerP/E < 25 or Owner Earnings Yield > 5%

  P/E or FCF YieldP/E=181.8x, FCF Yield=0.7%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=181.8x, P/B=27.7x

  ✗MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share134.0x

  ✗Ackman<= 25

  Price vs. Trailing Low372% of trailing low ($59.67)

  ✗Templeton<= 120% of trailing low (certified split-adjusted live window)

  Net income / market capitalization+1.19%; #2931/6340 (top 46.2%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Positive book equity / market capitalization+0.0516; #4996/6449 (top 77.5%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS181.8x

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E

  ✗Neff> 0.7 (Neff's published traditional edge)

  Price / Tangible Book Value per Share27.69x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change

  ✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)

  Revenue / market capitalization+0.0401; #4636/5247 (top 88.4%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization+0.89%; #2416/4519 (top 53.5%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date+48.83%; #677/6202 (top 10.9%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Growth0% pass✓ 1✗ 12▾

  No clean pass — all 8 investors flag at least one growth criterion

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)P/E 181.8x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  Inventory Growth vs Revenue GrowthInv: 288.9% vs Rev: 115.2%

  ✗LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency1/4 years positive

  ✗MarksPositive net income in >= 7 of last 10 years

  3yr Median Revenue Growth115.1%

  ✓Ackman>= 5%

  Positive EPS Growth Frequency

  ✗AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendgross margin 68.9% -> 75.7%, operating margin -25.5% -> 20.3%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  5-year Revenue CAGR

  ✗SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized
• Valuation models0% pass✗ 7▾

  ALAB overvalued: all 7 models price fair value below $221.83 (median $15.21)

  Graham fair value$14.83

  ✗Graham-1395.8% margin vs $221.83

  Buffett fair value$15.21

  ✗Buffett-1358.4% margin vs $221.83

  Greenblatt fair value$0.43

  ✗Greenblatt-51488.4% margin vs $221.83

  Munger fair value$30.16

  ✗Munger-635.5% margin vs $221.83

  Pabrai fair value$19.82

  ✗Pabrai-1019.2% margin vs $221.83

  Akre fair value$6.67

  ✗Akre-3225.8% margin vs $221.83

  Ackman fair value$59.30

  ✗Ackman-274.1% margin vs $221.83
• Verdicts7% pass✓ 1✗ 13▾

  Split decision: 12 FAIL · 3 NEUTRAL · 1 PASS

  Overall verdict

  ✗GrahamFAIL (2/9)✗BuffettFAIL (2/9)✗LynchFAIL (2/7)✗GreenblattRank #1637•PiotroskiNEUTRAL (F-Score 6)✗DremanFAIL (4/11)✗MungerFAIL (0/4)✗PabraiFAIL (0/3)✗AkreFAIL (1/6)✗MarksFAIL (0/5)✓AckmanPASS (4/9)✗TempletonFAIL (2/8)✗SleepFAIL (1/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (2/6)✗SchlossFAIL (1/7)•OshaughnessyNEUTRAL (Not ranked)
• Debt & Leverage8% pass✓ 3✗ 12▾

  11 of 12 flag ALAB's debt & leverage — Graham, Buffett, Lynch +8 more

  LT Debt vs Net Current Assets

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest Coverage

  ✗BuffettD/E < 0.5 AND Interest Coverage > 5x

  Total Debt / Equity

  ✗Lynch< 0.33

  Cash - Long-term Debt

  ✗LynchPositive preferred

  LT Debt / Total Assets Change0.00% -> 0.00%

  ✓PiotroskiDecreased YoY

  Current Assets / Current Liabilities8.03

  ✓Dreman> 1.5✓SchlossCurrent ratio >= 1.50x (app cutoff)

  Total Debt / Shareholders' Equity

  ✗Dreman< 0.8✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗SchlossD/E < 1.00x

  Debt Levels

  ✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3

  Interest Coverage & Debt/EBITDA

  ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x

  Total Debt / Shareholders Equity

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)

  ✗AsnessTop 30% of eligible cross-section
• Profitability13% pass✓ 13✗ 22▾

  14 of 16 flag ALAB's profitability — Graham, Buffett, Lynch +11 more

  Positive EPS (10 years)1/5 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)1/5 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)3.7%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)20.3% (latest)

  ✓BuffettStable or rising over 10 years

  Free Cash Flow Proxy$219.1M

  ✓BuffettPositive and growing

  Earnings Variance (10-yr CoV)

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

  ✗Buffett$1 retained -> > $1 market value created

  Basic earnings-growth PEG (dividends excluded)P/E 181.8x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  ROE23.1%

  ✓Lynch> 15%

  EBIT / Enterprise Value0.4%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=0.4%, ROC=15.0%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets14.31%

  ✓PiotroskiROA > 0

  ROA Change YoY-7.91% -> 14.31% (delta: +22.22%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=20.84%, ROA=14.31%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY76.4% -> 75.7%

  ✗PiotroskiImproved YoY

  Pre-Tax Income / Revenue28.7%

  ✓Dreman>= 8%

  Net Income / Shareholders' Equity23.1%

  ✓Dreman> 12%

  Margin of SafetyP/E=181.8x, P/B=27.7x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity3.7% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency1/4 years positive

  ✗MarksPositive net income in >= 7 of last 10 years

  Operating Income / Revenue25.5%

  ✓Ackman>= 15%

  Net Income / Shareholders Equity23.1%

  ✓Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend-25.5% (2023) -> 20.3% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 68.9% -> 75.7%, operating margin -25.5% -> 20.3%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  Net income / market capitalization+1.19%; #2931/6340 (top 46.2%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Gross profit / total assets+49.99%; #667/3702 (top 18.0%)

  ✓AsnessTop 30% of eligible cross-section

  Net income / positive book equity+23.07%; #673/5226 (top 12.9%)

  ✓AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.1197; #3697/5884 (top 62.8%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Efficiency25% pass✓ 3✗ 8▾

  6 of 8 flag ALAB's efficiency — Buffett, Greenblatt, Piotroski +3 more

  Current Ratio8.03

  ✓Graham>= 2.0

  ROIC (3-5 yr avg)

  ✗Buffett> 10%

  ROIC - WACC

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)15.0%

  ✗Greenblatt> 25%

  Current Ratio Change YoY11.71 -> 10.24

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.38x -> 0.56x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities8.03

  ✓Dreman> 1.5

  Return on Invested Capital

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=unavailable; FY2024: ROIC=unavailable; FY2025: ROIC=unavailable

  ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each

  Reinvestment Rate x ROIC

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)

  ✗SleepROIC > 12% in a majority of years
• Cash Flow40% pass✓ 5✗ 7▾

  6 of 10 flag ALAB's cash flow — Dreman, Pabrai, Marks +3 more

  Free Cash Flow Proxy$219.1M

  ✓BuffettPositive and growing

  FCF Positive and Growing$344.7M

  ✓LynchPositive and growing

  Operating Cash Flow$319.3M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=20.84%, ROA=14.31%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)118.3x

  ✗Dreman< 8x

  P/E or FCF YieldP/E=181.8x, FCF Yield=0.7%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive2/4 years FCF positive

  ✗MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap0.9%

  ✗Ackman>= 4%

  Price / FCF per Share134.0x

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency2/4 years positive

  ✗SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$344.7M

  ✓Neff> $0 (app proxy for a strong fundamental case)

  (Operating cash flow - capex) / market capitalization+0.89%; #2416/4519 (top 53.5%)

  ✗OshaughnessyTop 10% of eligible cross-section