Align Technology Inc (ALGN) Valuation
Historical valuation analysis based on 1280 data points (2021-09-13 to 2026-10-16)
Align Technology is the leading manufacturer of clear aligners. Invisalign, its main product, was approved by the Food and Drug Administration in 1998 and has since dominated, controlling over 90%...
Align Technology Inc (ALGN) currently trades at a P/E ratio of 25.30 (historical range: 20.86–94.33, median: 36.93), placing it at the 5th percentile — cheap relative to its history, P/S ratio of 2.53 (range: 2.29–16.71, 5th percentile — cheap relative to its history), EV/EBITDA of 15.13 (range: 14.80–21.73, 4th percentile).
Over the historical period (2021-09-13 to 2026-10-16), Align Technology Inc's P/E ratio has contracted by 39% over the observed period (from an average of 54.6 to 33.1).
Align Technology Inc trades well below its historical valuation range across most metrics.
Historical Valuation Metrics
| Metric | Current | Median | %ile | Assessment |
|---|---|---|---|---|
| P/E Ratio | 25.30 | 36.93 | 5th | cheap relative to its history |
| P/S Ratio | 2.53 | 4.50 | 5th | cheap relative to its history |
| EV/EBITDA | 15.13 | 18.73 | 4th | cheap relative to its history |
| FCF Yield | 6.05% | 2.45% | 96th | cheap relative to its history |
Align Technology Inc (ALGN) Valuation & P/E History
Align Technology Inc (ALGN) is a US-listed stock operating in the Healthcare sector, specifically the Orthopedic, Prosthetic & Surgical Appliances & Supplies industry currently trading at $147.45 with a market capitalization of $10.5 billion. This page provides historical valuation analysis for ALGN based on 1280 data points covering 2021-09-13 to 2026-10-16. The P/E ratio of 25.30 is below the historical median of 36.93, placing ALGN at the 5th percentile of its valuation range. The P/S ratio of 2.53 compares to a median of 4.50.
ALGN Valuation Metrics & Historical Range
The valuation table above shows Align Technology Inc's current and historical valuation multiples, including P/E ratio, P/S ratio, EV/EBITDA, FCF yield, and dividend yield. Each metric is compared to its own historical range to determine whether ALGN is currently trading above or below its typical valuation levels.
- P/E ratio: Price-to-earnings measures how much investors pay per dollar of earnings. A P/E above the historical median suggests ALGN is expensively valued; below the median suggests it is cheap.
- P/S ratio: Price-to-sales is useful for companies with volatile or negative earnings. Lower P/S relative to history may indicate value.
- EV/EBITDA: Enterprise value to EBITDA adjusts for debt and cash, providing a capital-structure-neutral valuation measure for Align Technology Inc.
- FCF yield: Free cash flow yield shows the cash return relative to market price. Higher yields may indicate undervaluation.
Is ALGN Overvalued or Undervalued?
Align Technology Inc trades well below its historical valuation range across most metrics. The overall valuation percentile of 5 combines P/E, P/S, and EV/EBITDA percentiles into a single measure of how expensive ALGN is relative to its own history. A percentile below 25 suggests the stock may be undervalued, while a percentile above 75 suggests it may be overvalued.
However, valuation is only one factor in investment decisions. A stock can remain "overvalued" for years if growth accelerates, or "undervalued" if the business deteriorates. Always combine valuation analysis with financial statement analysis and the full ALGN analysis page for a complete picture.
Valuation data is computed from historical price and fundamental data via Polygon.io and Finnhub.ALGN trades on NYSE/NASDAQ. This page is for informational purposes only and is not financial advice.