Align Technology, Inc. (ALGN) Financial Ratios
27 years of historical data (1999–2025) · Healthcare · Medical - Devices
EV/EBITDA
↓
15.15
↓-40% vs avg
5yr avg: 25.21
30Y Low10.5·High86.3
P/FCF
↓
26.57
↓-37% vs avg
5yr avg: 42.06
30Y Low13.7·High178.7
P/B Ratio
↓
3.26
↓-48% vs avg
5yr avg: 6.34
30Y Low1.9·High16.6
ROE
↓
10.4%
↑-22% vs avg
5yr avg: 13.3%
30Y Low-86%·High78%
Debt/EBITDA
↑
0.14
↓-3% vs avg
5yr avg: 0.15
30Y Low0.1·High1.9
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
ALGN Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Align Technology, Inc. trades at 32.2x earnings, 29% below its 5-year average of 45.1x, sitting at the 32nd percentile of its historical range. Compared to the Healthcare sector median P/E of 22.1x, the stock trades at a premium of 46%. On a free-cash-flow basis, the stock trades at 26.6x P/FCF, 37% below the 5-year average of 42.1x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $13.0B | $11.3B | $15.6B | $21.0B | $16.5B | $52.4B | $42.3B | $22.4B | $17.0B | $18.2B | $7.8B |
| Enterprise Value | $12.1B | $10.4B | $14.7B | $20.2B | $15.7B | $51.4B | $41.5B | $21.9B | $16.4B | $17.7B | $7.4B |
| P/E Ratio → | 32.23 | 27.64 | 37.10 | 47.16 | 45.75 | 67.82 | 23.85 | 50.46 | 42.57 | 78.51 | 41.26 |
| P/S Ratio | 3.23 | 2.81 | 3.91 | 5.43 | 4.43 | 13.25 | 17.13 | 9.29 | 8.66 | 12.34 | 7.25 |
| P/B Ratio | 3.26 | 2.80 | 4.06 | 5.78 | 4.59 | 14.45 | 13.09 | 16.60 | 13.60 | 15.81 | 7.87 |
| P/FCF | 26.57 | 23.10 | 25.11 | 34.50 | 59.74 | 67.87 | 83.47 | 37.40 | 51.42 | 74.87 | 44.24 |
| P/OCF | 21.98 | 19.11 | 21.18 | 26.70 | 29.08 | 44.65 | 63.94 | 29.91 | 30.72 | 41.46 | 31.63 |
P/E links to full P/E history page with 30-year chart
ALGN EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Align Technology, Inc.'s enterprise value stands at 15.2x EBITDA, 40% below its 5-year average of 25.2x. The Healthcare sector median is 14.2x, placing the stock at a 7% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.57 | 3.68 | 5.22 | 4.21 | 13.00 | 16.77 | 9.08 | 8.34 | 12.04 | 6.89 |
| EV / EBITDA | 15.15 | 13.01 | 19.55 | 25.67 | 20.46 | 47.35 | 86.26 | 35.17 | 31.46 | 45.31 | 27.27 |
| EV / EBIT | 19.60 | 17.72 | 21.90 | 30.71 | 24.04 | 52.63 | 107.10 | 42.49 | 35.15 | 50.15 | 29.90 |
| EV / FCF | — | 21.13 | 23.63 | 33.17 | 56.80 | 66.61 | 81.74 | 36.58 | 49.50 | 73.02 | 42.04 |
ALGN Profitability
Margins and return-on-capital ratios measuring operating efficiency
Align Technology, Inc. earns an operating margin of 15.3%. Operating margins have compressed from 16.7% to 15.3% over the past 3 years, signaling potential cost pressures or competitive headwinds. ROE of 10.4% is modest. ROIC of 15.4% represents solid returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 68.3% | 68.3% | 70.0% | 70.1% | 70.5% | 74.3% | 71.3% | 72.5% | 73.6% | 75.8% | 75.5% |
| Operating Margin | 15.3% | 15.3% | 15.2% | 16.7% | 17.2% | 24.7% | 15.7% | 22.5% | 23.7% | 24.0% | 23.1% |
| Net Profit Margin | 10.2% | 10.2% | 10.5% | 11.5% | 9.7% | 19.5% | 71.8% | 18.4% | 20.4% | 15.7% | 17.6% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 10.4% | 10.4% | 11.3% | 12.3% | 10.0% | 22.5% | 77.5% | 34.1% | 33.3% | 21.6% | 20.6% |
| ROA | 6.6% | 6.6% | 6.9% | 7.4% | 6.1% | 14.3% | 48.5% | 19.4% | 20.9% | 14.6% | 14.8% |
| ROIC | 15.4% | 15.4% | 15.9% | 17.2% | 17.7% | 29.2% | 18.1% | 55.3% | 53.1% | 40.6% | 29.0% |
| ROCE | 14.5% | 14.5% | 14.8% | 16.0% | 16.0% | 26.0% | 15.4% | 37.5% | 35.3% | 30.5% | 25.8% |
ALGN Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Align Technology, Inc. carries a Debt/EBITDA ratio of 0.1x, which is very conservative (96% below the sector average of 3.2x). The company holds a net cash position — cash of $1.1B exceeds total debt of $114M, providing substantial financial flexibility for buybacks, acquisitions, or weathering downturns.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.03 | 0.03 | 0.03 | 0.03 | 0.04 | 0.03 | 0.03 | 0.04 | — | — | — |
| Debt / EBITDA | 0.14 | 0.14 | 0.16 | 0.16 | 0.17 | 0.12 | 0.18 | 0.10 | — | — | — |
| Net Debt / Equity | — | -0.24 | -0.24 | -0.22 | -0.23 | -0.27 | -0.27 | -0.36 | -0.51 | -0.39 | -0.39 |
| Net Debt / EBITDA | -1.21 | -1.21 | -1.23 | -1.03 | -1.06 | -0.90 | -1.82 | -0.79 | -1.22 | -1.15 | -1.43 |
| Debt / FCF | — | -1.97 | -1.48 | -1.33 | -2.94 | -1.26 | -1.72 | -0.82 | -1.92 | -1.85 | -2.20 |
| Interest Coverage | — | — | — | — | — | — | — | — | — | — | — |
Net cash position: cash ($1.1B) exceeds total debt ($114M)
ALGN Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.36x means Align Technology, Inc. can comfortably meet its short-term obligations, though there is limited excess liquidity. The current ratio has improved from 1.18x to 1.36x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.36 | 1.36 | 1.22 | 1.18 | 1.26 | 1.30 | 1.40 | 1.68 | 1.88 | 2.32 | 2.69 |
| Quick Ratio | 1.24 | 1.24 | 1.10 | 1.04 | 1.08 | 1.18 | 1.29 | 1.57 | 1.80 | 2.26 | 2.61 |
| Cash Ratio | 0.57 | 0.57 | 0.51 | 0.47 | 0.52 | 0.61 | 0.72 | 0.89 | 1.06 | 1.45 | 1.81 |
| Asset Turnover | — | 0.65 | 0.64 | 0.63 | 0.63 | 0.67 | 0.51 | 0.96 | 0.96 | 0.83 | 0.77 |
| Inventory Turnover | 5.65 | 5.65 | 4.72 | 3.89 | 3.25 | 4.42 | 5.09 | 5.92 | 9.32 | 11.25 | 9.75 |
| Days Sales Outstanding | — | 104.71 | 93.98 | 98.96 | 97.75 | 91.50 | 97.11 | 93.50 | 89.52 | 80.31 | 83.63 |
ALGN Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Align Technology, Inc. returns 3.6% to shareholders annually primarily through share buybacks. The earnings yield of 3.1% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.1% | 3.6% | 2.7% | 2.1% | 2.2% | 1.5% | 4.2% | 2.0% | 2.3% | 1.3% | 2.4% |
| FCF Yield | 3.8% | 4.3% | 4.0% | 2.9% | 1.7% | 1.5% | 1.2% | 2.7% | 1.9% | 1.3% | 2.3% |
| Buyback Yield | 3.6% | 4.1% | 2.3% | 2.8% | 2.6% | 0.7% | 0.0% | 1.8% | 1.8% | 0.6% | 1.2% |
| Total Shareholder Yield | 3.6% | 4.1% | 2.3% | 2.8% | 2.6% | 0.7% | 0.0% | 1.8% | 1.8% | 0.6% | 1.2% |
| Shares Outstanding | — | $73M | $75M | $77M | $78M | $80M | $79M | $80M | $81M | $82M | $81M |
Peer Comparison
Compare ALGN with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 ALGNYou | $13B | 32.2 | 15.2 | 26.6 | 68.3% | 15.3% | 10.4% | 15.4% | 0.1 |
 XRAY | $2B | -3.4 | 7.0 | 19.9 | 50.0% | 6.8% | -36.4% | 5.1% | 4.1 |
 HSIC | $9B | 24.4 | 11.9 | 16.0 | 29.1% | 5.7% | 8.3% | 7.1% | 3.4 |
 NVST | $4B | 92.5 | 13.8 | 18.3 | 55.0% | 8.3% | 1.6% | 4.8% | 5.0 |
 IDXX | $45B | 43.0 | 31.1 | 42.4 | 61.8% | 31.6% | 66.2% | 42.5% | 0.7 |
 HOLX | $17B | 30.5 | 17.4 | 18.4 | 61.0% | 17.4% | 11.1% | 9.4% | 2.6 |
 ISRG | $144B | 51.7 | 39.0 | 58.0 | 66.0% | 29.3% | 16.6% | 15.0% | 0.1 |
 GKOS | $8B | -39.8 | — | — | 77.5% | -17.1% | -26.4% | -9.2% | — |
 TMDX | $3B | 16.2 | 19.9 | 20.4 | 59.9% | 17.9% | 54.2% | 18.8% | 3.5 |
 MMM | $84B | 26.8 | 16.8 | 60.0 | 39.6% | 18.3% | 75.2% | 28.1% | 2.4 |
 IPGP | $5B | 161.7 | 57.6 | — | 38.0% | 1.3% | 1.5% | 0.6% | — |
| Healthcare Median | — | 22.1 | 14.2 | 18.5 | 63.9% | -4.3% | -32.6% | -11.6% | 3.2 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 27 years · Updated daily
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ALGN — Frequently Asked Questions
Quick answers to the most common questions about buying ALGN stock.
What is Align Technology, Inc.'s P/E ratio?
Align Technology, Inc.'s current P/E ratio is 32.2x. The historical average is 42.6x. This places it at the 32th percentile of its historical range.
What is Align Technology, Inc.'s EV/EBITDA?
Align Technology, Inc.'s current EV/EBITDA is 15.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 28.8x.
What is Align Technology, Inc.'s ROE?
Align Technology, Inc.'s return on equity (ROE) is 10.4%. The historical average is 11.2%.
Is ALGN stock overvalued?
Based on historical data, Align Technology, Inc. is trading at a P/E of 32.2x. This is at the 32th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What are Align Technology, Inc.'s profit margins?
Align Technology, Inc. has 68.3% gross margin and 15.3% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does Align Technology, Inc. have?
Align Technology, Inc.'s Debt/EBITDA ratio is 0.1x, indicating low leverage. A ratio below 2x is generally considered financially healthy.