Latest Ratios: P/E Ratio 24.0x · EV/EBITDA 15.0x · ROE 10.4%. (1999–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $11.9B | $11.3B | $15.6B | $21.0B | $16.5B | $52.4B | $42.3B | $22.4B | $17.0B | $18.2B | $7.8B |
| Enterprise Value | $10.9B | $10.4B | $14.7B | $20.2B | $15.7B | $51.4B | $41.5B | $21.9B | $16.4B | $17.7B | $7.4B |
| P/E Ratio → | 23.97 | 27.64 | 37.10 | 47.16 | 45.75 | 67.82 | 23.85 | 50.46 | 42.57 | 78.51 | 41.26 |
| P/S Ratio | 2.86 | 2.81 | 3.91 | 5.43 | 4.43 | 13.25 | 17.13 | 9.29 | 8.66 | 12.34 | 7.25 |
| P/B Ratio | 2.98 | 2.80 | 4.06 | 5.78 | 4.59 | 14.45 | 13.09 | 16.60 | 13.60 | 15.81 | 7.87 |
| P/FCF | 16.86 | 23.10 | 25.11 | 34.50 | 59.74 | 67.87 | 83.47 | 37.40 | 51.42 | 74.87 | 44.24 |
| P/OCF | 20.04 | 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
Enterprise-value multiples — capital-structure-neutral measures of total business value
| 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 | 15.01 | 12.15 | 19.55 | 25.67 | 20.46 | 47.35 | 86.26 | 35.17 | 31.46 | 45.31 | 27.27 |
| EV / EBIT | 17.73 | 17.72 | 21.90 | 30.71 | 24.04 | 50.75 | 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 |
Margins and return-on-capital ratios measuring operating efficiency
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% |
| 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% |
Solvency and debt-coverage ratios — lower is generally safer
| 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 | 0.13 | 0.13 | 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 | -1.13 | -1.13 | -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)
Short-term solvency ratios and asset-utilisation metrics
| 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 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
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 | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.2% | 3.6% | 2.7% | 2.1% | 2.2% | 1.5% | 4.2% | 2.0% | 2.3% | 1.3% | 2.4% |
| FCF Yield | 5.9% | 4.3% | 4.0% | 2.9% | 1.7% | 1.5% | 1.2% | 2.7% | 1.9% | 1.3% | 2.3% |
| Buyback Yield | 3.9% | 4.1% | 2.3% | 2.8% | 2.6% | 0.7% | 0.0% | 1.8% | 1.8% | 0.6% | 1.2% |
| Total Shareholder Yield | 3.9% | 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 |
Includes 30+ ratios · 27 years · Updated daily
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Quick answers to the most common questions about buying ALGN stock.
Align Technology, Inc.'s current P/E ratio is 24.0x. The historical average is 42.6x. This places it at the 16th percentile of its historical range.
Align Technology, Inc.'s current EV/EBITDA is 15.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 28.7x.
Align Technology, Inc.'s return on equity (ROE) is 10.4%. The historical average is 11.2%.
Based on historical data, Align Technology, Inc. is trading at a P/E of 24.0x. This is at the 16th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Align Technology, Inc. has 68.3% gross margin and 15.3% operating margin. Operating margin between 10-20% is typical for established companies.
Align Technology, Inc.'s Debt/EBITDA ratio is 0.1x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Flat revenue with SG&A creep
Metrics are mathematically derived from official filings.
Trailing Premium Narrows Sharply on Forward Basis
Based on the supplied figures, ALGN trades at 28.21x trailing earnings but 14.30x forward, a compression that suggests the market is pricing in an earnings recovery rather than the flat revenue trend visible in recent quarters.
The gap between trailing P/E of 28.21 and forward P/E of 14.30 implies consensus expects earnings to roughly double on a forward basis, a large step-up given revenue has been near flat. EV/EBITDA of 13.11 trailing versus 7.46 forward shows the same pattern, so investors should monitor whether forward estimates rest on margin repair rather than assumed cost cuts. Against peers such as Henry Schein at 26.09x trailing P/E and 12.39x EV/EBITDA, ALGN's valuation is not obviously rich on enterprise metrics, though its 2.83x price-to-sales ratio warrants scrutiny of the growth embedded in the price.
Gross Margin Holds While Operating Margin Oscillates
As reported in the quarterly statements, ALGN's gross margin stayed between 64.2% and 70.8% while operating margin swung from 9.7% to 16.7%, indicating that earnings volatility originates below the gross profit line.
A gross margin that remains broadly in the high sixties suggests core product economics are intact, so instability in operating margin likely reflects SG&A absorption rather than pricing or input cost erosion. The 2026Q3 operating margin of 16.7% sits near the top of the observed range, which may flatter the trend given how sharply it has moved quarter to quarter. A normalized operating margin in the low-to-mid teens is a more defensible earnings base until SG&A intensity shows a durable decline.
Returns Thin Despite Strong Cash Position
Based on the reported figures, ALGN's ROIC has ranged from 2.3% to 4.1% over ten quarters, a level that appears thin relative to the capital base and suggests limited compounding of invested capital.
ROIC in the 3% to 4% band with ROE between 1.4% and 3.4% points to a business not generating strong economic returns on capital employed, even with a balance sheet carrying substantial cash. The cash-heavy asset base likely dilutes returns, so low ratios may partly reflect idle capital rather than operating weakness. Whether compounding improves will depend on whether management redeploys or distributes the cash accumulation, which the supplied data does not resolve.
Negligible Debt Keeps Coverage Comfortable
According to the reported statements, ALGN's debt-to-equity remained near 0.03 across all ten quarters while debt-to-EBITDA fluctuated between 0.44 and 1.30, pointing to minimal financial leverage.
With debt-to-equity stable near 0.03, leverage does not appear to constrain the business, and the variation in debt-to-EBITDA reflects earnings volatility rather than increased borrowing. Interest coverage data is unavailable for most quarters, so conclusions about debt service capacity should be limited to the low absolute debt level. Refinancing risk appears limited based on the reported balance, though investors should confirm the maturity profile in the filings.
Cash-Heavy Balance Sheet Flatters Return Metrics
Based on reported figures, ALGN's cash near $1.1B against roughly $112M of debt may make the balance sheet look stronger than the modest ROIC and flat revenue base warrant, since idle cash dilutes capital efficiency.
The most commonly misapplied metric here is headline ROE, which is pushed around by the large cash balance and by equity swings from retained earnings and buybacks, so it understates the operating economics of the core business. ROIC or return on operating capital, which strips out excess cash, gives a cleaner read on the underlying franchise and suggests the business earns modest returns on what it actually deploys. Investors should adjust for cash and stock-based compensation before treating the balance sheet as evidence of an efficient capital base.