Align Technology, Inc. (ALGN) Stock Valuation — PE Analysis
Medical - Devices · NASDAQ
Current Price
$174.84
PE Ratio (TTM)
29.0x
Intrinsic Value
$214.16
+18.4% margin of safety
COMPETITIVE MOAT
↑Invisalign Brand Dominance
Align's Invisalign brand is a household name, creating strong consumer pull and dentist preference. This established brand equity is difficult for competitors to replicate.
↑Proprietary Digital Workflow
The company's integrated digital scanning, treatment planning, and manufacturing system creates a sticky ecosystem. This technological advantage enhances efficiency and patient outcomes.
↑Global Dentist Network
Align has cultivated a vast network of trained dental professionals worldwide. This extensive reach and established relationships are a significant barrier to entry for new players.
INVESTMENT RISKS
↓North America Demand Pressure
The CFO noted ongoing challenges in North American demand. This could impact revenue growth if not offset by international expansion.
↓Competitive Landscape Intensifies
While Invisalign is dominant, other clear aligner and traditional orthodontic solutions exist. Increased competition could erode market share.
↓Technological Disruption
The rapid advancement of AI and digital dentistry presents opportunities but also risks. Competitors could develop superior or more cost-effective digital platforms.
Base case
ALGN base case PE valuation
A base case PE valuation for ALGN estimates a fair value of about $214.16 per share, against a current price of $174.84. The model assumes 11.1% annual earnings growth, a 29x target PE multiple, and a 10% discount rate.
Intrinsic Value
$214.16
Margin of safety
+18.4%
Expected annual return
+4.1%
Base case assumptions: 11.1% annual earnings growth, 29x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the ALGN PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Align Technology, Inc. respond.
Open PE Calculator for ALGNCompany Overview
Align Technology, Inc. is a medical technology enterprise that develops, produces, and markets its leading products: Invisalign transparent dental aligners and iTero digital intraoral scanners, along with related services. These offerings serve a wide range of dental professionals, including orthodontists, general dentists, and those specializing in restorative and cosmetic dentistry. The company's operations are divided into two main business units: "Clear Aligner" and "Scanners and Services." The Clear Aligner segment offers a variety of solutions. Its comprehensive products include the full Invisalign treatment for teenage patients, designed to address complex orthodontic needs such as mandibular advancement, patient compliance tracking, and managing tooth eruption. It also features specialized Invisalign First Phase I and Phase 2 packages for younger children, typically aged seven to ten, who have mixed dentition (a combination of primary and permanent teeth). Beyond these, the segment provides non-comprehensive aligner options like Invisalign moderate, lite, express, and Invisalign Go. Additional non-case products include retention devices, fees for Invisalign training, and sales of ancillary items such as cleaning materials and adjustment tools used by dental practitioners during treatment. The Scanners and Services segment centers around the iTero scanner, a unified hardware platform offering various software applications for both restorative and orthodontic procedures. It supplies specialized restorative software to general dentists, prosthodontists, periodontists, and oral surgeons, as well as distinct software for orthodontists to manage digital patient records, perform diagnoses, and facilitate the fabrication of printed models and retainers. This segment also provides computer-aided design and manufacturing (CAD/CAM) services, along with supplementary products like disposable covers for the scanner wand and iTero models and dies. Furthermore, it includes third-party scanners and digital scan solutions, the Invisalign Outcome Simulator (a chair-side and cloud-based application for the iTero scanner), the Invisalign Progress Assessment tool, and TimeLapse technology, which enables clinicians to compare a patient's historical 3D scans against current data. Align Technology distributes its products worldwide, with a strong presence in the United States, Switzerland, and China. Founded in 1997, the company is headquartered in Tempe, Arizona.
Financial Metrics — ALGN PE Stock Valuation Data
PE Ratio (TTM)
29.0x
PEG Ratio
3.32
Earnings Yield
3.44%
ROE (TTM)
10.7%
Revenue/Share (TTM)
$57.34
Debt/Equity
0.02x
Frequently Asked Questions
What is the PE ratio of ALGN?
The trailing twelve-month PE ratio of ALGN reflects how much investors pay per dollar of Align Technology, Inc.'s earnings. This metric is most useful when compared to Medical - Devices peers and the company's own historical range.
Is ALGN overvalued based on PE ratio?
ALGN's PE of 29.0x combined with a PEG ratio of 3.32 provides a growth-adjusted perspective. A PEG above 2.0 suggests ALGN may be richly valued even accounting for growth. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Medical - Devices, a DCF analysis may be more appropriate.
How do I value ALGN stock using PE ratio?
To value Align Technology, Inc. using PE: (1) Compare the current PE (29.0x) against the Medical - Devices median to assess relative pricing, (2) check the PEG ratio (3.32) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of ALGN?
ALGN's PEG ratio is 3.32, calculated by dividing the PE ratio (29.0x) by the expected earnings growth rate. A PEG above 2.0 often signals the stock is priced aggressively relative to its growth trajectory. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for ALGN stock valuation?
PE ratio gives a quick relative read — how ALGN is priced versus Medical - Devices peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See ALGN DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Healthcare valuationsP/E and DCF value ALGN with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.