ALGN Relative Valuation
ALGN's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, ALGN is overvalued; if below, it's undervalued.
Historical Valuation
Align Technology Inc (ALGN) is now in the Undervalued zone, suggesting that its current forward PE ratio of 14.36 is considered Undervalued compared with the five-year average of 34.38. The fair price of Align Technology Inc (ALGN) is between 221.07 to 491.03 according to relative valuation methord. Compared to the current price of 155.00 USD , Align Technology Inc is Undervalued By 29.89%.
Relative Value
Fair Zone
221.07-491.03
Current Price：155.00
29.89%
Undervalued
14.53
PE
1Y
3Y
5Y
Trailing
Forward
9.53
EV/EBITDA
Align Technology Inc. (ALGN) has a current EV/EBITDA of 9.53. The 5-year average EV/EBITDA is 23.07. The thresholds are as follows: Strongly Undervalued below 2.19, Undervalued between 2.19 and 12.63, Fairly Valued between 33.51 and 12.63, Overvalued between 33.51 and 43.95, and Strongly Overvalued above 43.95. The current Forward EV/EBITDA of 9.53 falls within the Undervalued range.
10.80
EV/EBIT
Align Technology Inc. (ALGN) has a current EV/EBIT of 10.80. The 5-year average EV/EBIT is 26.17. The thresholds are as follows: Strongly Undervalued below 3.29, Undervalued between 3.29 and 14.73, Fairly Valued between 37.61 and 14.73, Overvalued between 37.61 and 49.05, and Strongly Overvalued above 49.05. The current Forward EV/EBIT of 10.80 falls within the Undervalued range.
2.70
PS
Align Technology Inc. (ALGN) has a current PS of 2.70. The 5-year average PS is 6.42. The thresholds are as follows: Strongly Undervalued below -0.05, Undervalued between -0.05 and 3.19, Fairly Valued between 9.65 and 3.19, Overvalued between 9.65 and 12.89, and Strongly Overvalued above 12.89. The current Forward PS of 2.70 falls within the Undervalued range.
14.01
P/OCF
Align Technology Inc. (ALGN) has a current P/OCF of 14.01. The 5-year average P/OCF is 28.78. The thresholds are as follows: Strongly Undervalued below 5.01, Undervalued between 5.01 and 16.89, Fairly Valued between 40.66 and 16.89, Overvalued between 40.66 and 52.55, and Strongly Overvalued above 52.55. The current Forward P/OCF of 14.01 falls within the Undervalued range.
15.78
P/FCF
Align Technology Inc. (ALGN) has a current P/FCF of 15.78. The 5-year average P/FCF is 41.95. The thresholds are as follows: Strongly Undervalued below -9.60, Undervalued between -9.60 and 16.18, Fairly Valued between 67.73 and 16.18, Overvalued between 67.73 and 93.51, and Strongly Overvalued above 93.51. The current Forward P/FCF of 15.78 falls within the Undervalued range.
Align Technology Inc (ALGN) has a current Price-to-Book (P/B) ratio of 2.82. Compared to its 3-year average P/B ratio of 4.92 , the current P/B ratio is approximately -42.67% higher. Relative to its 5-year average P/B ratio of 7.33, the current P/B ratio is about -61.49% higher. Align Technology Inc (ALGN) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.20%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 2.63% , the current FCF yield is about -100.00% lower.
2.86
P/B
Median3y
4.92
Median5y
7.33
5.10
FCF Yield
Median3y
3.20
Median5y
2.63
Competitors Valuation Multiple
The average P/S ratio for ALGN's competitors is 2.21, providing a benchmark for relative valuation. Align Technology Inc Corp (ALGN) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 1.82%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of ALGN decreased by 24.78% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 24.24 to 30.38.
The secondary factor is the Revenue Growth, contributed 1.82%to the performance.
Overall, the performance of ALGN in the past 1 year is driven by P/E Change. Which is more unsustainable.
People Also Watch
FAQ
Is Align Technology Inc (ALGN) currently overvalued or undervalued?
What is Align Technology Inc (ALGN) fair value?
How does ALGN's valuation metrics compare to the industry average?
What is the current P/B ratio for Align Technology Inc (ALGN) as of Dec 05 2025?
What is the current FCF Yield for Align Technology Inc (ALGN) as of Dec 05 2025?
What is the current Forward P/E ratio for Align Technology Inc (ALGN) as of Dec 05 2025?