Angelalign Technology (SEHK:6699): Weighing Valuation After Pioneering 3D Printing Partnership With LuxCreo

Angelalign Technology (SEHK:6699) has taken a significant step in dental innovation by investing in LuxCreo and launching a global partnership. Together, they aim to advance 3D-printed aligner materials, increasing precision, flexibility, and patient comfort in orthodontics.

See our latest analysis for Angelalign Technology.

Angelalign’s move to team up with LuxCreo comes as its stock shows renewed momentum, with an 11.3% share price return over the past three months. Despite this, the one-year total shareholder return is essentially flat, which hints that the market is still weighing longer-term prospects against recent innovation-led gains and ongoing industry challenges.

If Angelalign’s push into digital dentistry caught your interest, the natural next step is to discover other healthcare stocks making waves. See the full list for free.

With strong recent gains but a year-long flat performance, and new innovation on deck, investors now face a familiar dilemma: is Angelalign undervalued after its latest moves, or is the market already pricing in its future growth?

Price-to-Earnings of 58x: Is it justified?

Angelalign Technology’s stock is trading at a price-to-earnings (P/E) ratio of 58x, considerably higher than both the industry average and its peers. This is despite recent innovation-driven momentum in its business and share price.

The price-to-earnings multiple measures how much investors are willing to pay today for every dollar of current earnings. For a healthcare technology company like Angelalign, this figure signals expectations for substantial growth, improved profitability, or a unique market advantage.

At 58x, Angelalign is valued almost three times above the Hong Kong Medical Equipment industry average of 21.6x and is also higher than the peer average of 48.6x. The fair P/E ratio is estimated at 19.4x, which is well below Angelalign’s current level. This could position the market for a potential recalibration if growth fails to meet steep expectations.

Explore the SWS fair ratio for Angelalign Technology

Result: Price-to-Earnings of 58x (OVERVALUED)

However, steady annual growth may be tested if competitive pressures intensify or if revenue momentum fails to meet high market expectations.

Find out about the key risks to this Angelalign Technology narrative.

Another View: DCF Analysis Offers a Twist

While the price-to-earnings ratio flags Angelalign as expensive, our SWS DCF model tells a different story. Based on its cash flow forecasts, Angelalign trades about 11% below our estimated fair value. This suggests the market might not be fully pricing in its growth potential.

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Angelalign Technology for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Angelalign Technology Narrative

If you want to reach your own conclusion or dig deeper into the numbers, you can easily build your own analysis in just a few minutes. Do it your way

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Angelalign Technology.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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