ALGN Valuation

Align Technology Inc

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133.090

+2.62(2.008%)1D

Overview
Forecast
Valuation
Earnings

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 12.36 is considered Undervalued compared with the five-year average of 35.71. The fair price of Align Technology Inc (ALGN) is between 261.17 to 527.00 according to relative valuation methord. Compared to the current price of 132.50 USD , Align Technology Inc is Undervalued By 49.27%.

Relative Value

Fair Zone

261.17-527.00

Current Price：132.50

49.27%

Undervalued

12.36

Trailing

Forward

8.25

EV/EBITDA

Align Technology Inc. (ALGN) has a current EV/EBITDA of 8.25. The 5-year average EV/EBITDA is 24.00. The thresholds are as follows: Strongly Undervalued below 3.20, Undervalued between 3.20 and 13.60, Fairly Valued between 34.40 and 13.60, Overvalued between 34.40 and 44.80, and Strongly Overvalued above 44.80. The current Forward EV/EBITDA of 8.25 falls within the Undervalued range.

9.46

EV/EBIT

Align Technology Inc. (ALGN) has a current EV/EBIT of 9.46. The 5-year average EV/EBIT is 27.12. The thresholds are as follows: Strongly Undervalued below 4.59, Undervalued between 4.59 and 15.86, Fairly Valued between 38.38 and 15.86, Overvalued between 38.38 and 49.65, and Strongly Overvalued above 49.65. The current Forward EV/EBIT of 9.46 falls within the Undervalued range.

2.34

Align Technology Inc. (ALGN) has a current PS of 2.34. The 5-year average PS is 6.68. The thresholds are as follows: Strongly Undervalued below 0.22, Undervalued between 0.22 and 3.45, Fairly Valued between 9.91 and 3.45, Overvalued between 9.91 and 13.14, and Strongly Overvalued above 13.14. The current Forward PS of 2.34 falls within the Undervalued range.

12.97

P/OCF

Align Technology Inc. (ALGN) has a current P/OCF of 12.97. The 5-year average P/OCF is 29.83. The thresholds are as follows: Strongly Undervalued below 6.10, Undervalued between 6.10 and 17.97, Fairly Valued between 41.69 and 17.97, Overvalued between 41.69 and 53.56, and Strongly Overvalued above 53.56. The current Forward P/OCF of 12.97 falls within the Undervalued range.

15.05

P/FCF

Align Technology Inc. (ALGN) has a current P/FCF of 15.05. The 5-year average P/FCF is 43.30. The thresholds are as follows: Strongly Undervalued below -7.48, Undervalued between -7.48 and 17.91, Fairly Valued between 68.68 and 17.91, Overvalued between 68.68 and 94.07, and Strongly Overvalued above 94.07. The current Forward P/FCF of 15.05 falls within the Undervalued range.

Align Technology Inc (ALGN) has a current Price-to-Book (P/B) ratio of 2.42. Compared to its 3-year average P/B ratio of 5.01 , the current P/B ratio is approximately -51.80% higher. Relative to its 5-year average P/B ratio of 7.62, the current P/B ratio is about -68.26% 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 3.01%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 2.48% , the current FCF yield is about -100.00% lower.

2.42

P/B

Median3y

5.01

Median5y

7.62

6.63

FCF Yield

Median3y

3.01

Median5y

2.48

Competitors Valuation Multiple

The average P/S ratio for ALGN's competitors is , providing a benchmark for relative valuation. Align Technology Inc Corp (ALGN) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of -1.56%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Bio Rad Laboratories Inc

Loss

2.06%

8.02B

Performance Decomposition

Market capitalization of ALGN decreased by 36.37% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 9.39 to 12.31.

The secondary factor is the Revenue Growth, contributed -1.56%to the performance.

Overall, the performance of ALGN in the past 1 year is driven by Margin Expansion. Which is more sustainable.

-1.56%

1.03B → 1.01B

Revenue Growth

31.10%

9.39 → 12.31

Margin Expansion

-65.91%

65.68 → 22.39

P/E Change

-36.37%