Align Technology, Inc.

NasdaqGS:ALGN Stock Report

Market Cap: US$12.0b

Align Technology Valuation

Is ALGN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ALGN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Fair Value: ALGN ($170.58) is trading below our estimate of fair value ($235.72)

Significantly Below Fair Value: ALGN is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ALGN?

Key metric: As ALGN is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ALGN. This is calculated by dividing ALGN's market cap by their current earnings.
What is ALGN's PE Ratio?
PE Ratio32.3x
EarningsUS$378.40m
Market CapUS$11.97b

Price to Earnings Ratio vs Peers

How does ALGN's PE Ratio compare to its peers?

The above table shows the PE ratio for ALGN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average30.8x
SOLV Solventum
9.8x2.51%US$14.6b
COO Cooper Companies
43.5x17.05%US$16.4b
MMSI Merit Medical Systems
46.6x15.08%US$5.4b
HAE Haemonetics
23.4x14.51%US$3.9b
ALGN Align Technology
32.3x18.02%US$12.0b

Price-To-Earnings vs Peers: ALGN is expensive based on its Price-To-Earnings Ratio (32.3x) compared to the peer average (30.8x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

How does ALGN's PE Ratio compare vs other companies in the US Medical Equipment Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
MHUA.F Meihua International Medical Technologies
0.2xn/aUS$1.58m
ARTH.Q Arch Therapeutics
n/an/aUS$4.00
No more companies available in this PE range
ALGN 32.3xIndustry Avg. 30.8xNo. of Companies9PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ALGN is expensive based on its Price-To-Earnings Ratio (32.3x) compared to the US Medical Equipment industry average (30.8x).

Price to Earnings Ratio vs Fair Ratio

What is ALGN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ALGN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio32.3x
Fair PE Ratio28x

Price-To-Earnings vs Fair Ratio: ALGN is expensive based on its Price-To-Earnings Ratio (32.3x) compared to the estimated Fair Price-To-Earnings Ratio (28x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ALGN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$170.58
US$180.47
+5.80%
12.15%US$220.00US$150.00n/a15
Jan ’27US$156.15
US$179.80
+15.15%
12.28%US$220.00US$150.00n/a15
Dec ’26US$146.72
US$184.07
+25.46%
13.37%US$220.00US$150.00n/a14
Nov ’26US$137.88
US$180.50
+30.91%
12.58%US$220.00US$150.00n/a14
Oct ’26US$127.52
US$186.36
+46.14%
13.73%US$220.00US$140.00n/a14
Sep ’26US$141.96
US$186.36
+31.27%
13.73%US$220.00US$140.00n/a14
Aug ’26US$136.52
US$186.36
+36.51%
13.73%US$220.00US$140.00n/a14
Jul ’26US$194.28
US$232.34
+19.59%
11.22%US$275.00US$180.00n/a15
Jun ’26US$180.94
US$227.30
+25.62%
14.57%US$275.00US$150.54n/a15
May ’26US$176.74
US$229.10
+29.63%
14.87%US$275.00US$150.54n/a15
Apr ’26US$158.08
US$249.30
+57.71%
13.62%US$290.00US$150.54n/a15
Mar ’26US$187.03
US$254.64
+36.15%
14.04%US$295.00US$150.54n/a15
Feb ’26US$219.11
US$263.09
+20.07%
10.72%US$300.00US$206.00n/a14
Jan ’26US$208.51
US$263.81
+26.52%
11.82%US$320.00US$206.00US$156.1514
Dec ’25US$232.77
US$261.24
+12.23%
12.11%US$320.00US$200.00US$146.7213
Nov ’25US$208.58
US$261.24
+25.25%
12.11%US$320.00US$200.00US$137.8813
Oct ’25US$245.35
US$287.01
+16.98%
14.09%US$350.00US$215.00US$127.5213
Sep ’25US$237.22
US$287.01
+20.99%
14.09%US$350.00US$215.00US$141.9613
Aug ’25US$228.33
US$299.69
+31.25%
13.65%US$353.99US$215.00US$136.5213
Jul ’25US$238.64
US$333.43
+39.72%
11.77%US$400.00US$250.00US$194.2814
Jun ’25US$257.21
US$341.64
+32.83%
11.74%US$400.00US$250.00US$180.9414
May ’25US$284.52
US$336.55
+18.29%
11.97%US$400.00US$250.00US$176.7415
Apr ’25US$319.65
US$310.15
-2.97%
13.40%US$355.00US$215.00US$158.0815
Mar ’25US$300.01
US$309.14
+3.04%
13.04%US$350.00US$215.00US$187.0315
Feb ’25US$273.38
US$308.36
+12.80%
13.33%US$344.00US$215.00US$219.1114
Jan ’25US$274.00
US$277.58
+1.31%
19.88%US$344.00US$180.00US$208.5114
US$180.47
Fair Value
5.5% undervalued intrinsic discount
15
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/01/08 23:04
End of Day Share Price 2026/01/08 00:00
Earnings2025/09/30
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Align Technology, Inc. is covered by 44 analysts. 17 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Jeffrey JohnsonBaird
Glen SantangeloBarclays
Charley JonesBarrington Research Associates, Inc.