Latest Ratios: P/E Ratio 26.2x · EV/EBITDA 12.1x · 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 | $10.6B | $11.3B | $15.6B | $21.0B | $16.5B | $52.4B | $42.3B | $22.4B | $17.0B | $18.2B | $7.8B |
| Enterprise Value | $9.6B | $10.4B | $14.7B | $20.2B | $15.7B | $51.4B | $41.5B | $21.9B | $16.4B | $17.7B | $7.4B |
| P/E Ratio → | 26.22 | 27.64 | 37.10 | 47.16 | 45.75 | 67.82 | 23.85 | 50.46 | 42.57 | 78.51 | 41.26 |
| P/S Ratio | 2.63 | 2.81 | 3.91 | 5.43 | 4.43 | 13.25 | 17.13 | 9.29 | 8.66 | 12.34 | 7.25 |
| P/B Ratio | 2.66 | 2.80 | 4.06 | 5.78 | 4.59 | 14.45 | 13.09 | 16.60 | 13.60 | 15.81 | 7.87 |
| P/FCF | 21.62 | 23.10 | 25.11 | 34.50 | 59.74 | 67.87 | 83.47 | 37.40 | 51.42 | 74.87 | 44.24 |
| P/OCF | 17.89 | 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 | 12.11 | 13.01 | 19.55 | 25.67 | 20.46 | 47.35 | 86.26 | 35.17 | 31.46 | 45.31 | 27.27 |
| EV / EBIT | 15.66 | 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 | 0.14 | 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)
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 | 3.8% | 3.6% | 2.7% | 2.1% | 2.2% | 1.5% | 4.2% | 2.0% | 2.3% | 1.3% | 2.4% |
| FCF Yield | 4.6% | 4.3% | 4.0% | 2.9% | 1.7% | 1.5% | 1.2% | 2.7% | 1.9% | 1.3% | 2.3% |
| Buyback Yield | 4.4% | 4.1% | 2.3% | 2.8% | 2.6% | 0.7% | 0.0% | 1.8% | 1.8% | 0.6% | 1.2% |
| Total Shareholder Yield | 4.4% | 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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10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying ALGN stock.
Align Technology, Inc.'s current P/E ratio is 26.2x. 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 12.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 28.8x.
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 26.2x. 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
Margin volatility and SBC swings
Metrics are mathematically derived from official filings.
Gross Margin Volatility Pressures Earnings
ALGN's gross margin swung from 70.8% in 2026Q1 to 65.1% in 2026Q2, a 570 bps drop, per latest quarterly data, suggesting pricing or mix pressures that compress operating leverage.
The 570 basis point sequential decline in gross margin is the most significant profitability signal, as it directly feeds into operating margin, which fell from 16.6% to 11.7% in the same period. This volatility, alongside a ten-quarter range of 64.2% to 70.8%, indicates that ALGN's premium pricing power is not stable, possibly due to competitive dynamics or product mix shifts. Net margin also contracted to 10.3% in 2026Q2 from 13.0% in 2025Q4, reinforcing that the earnings power is sensitive to gross margin fluctuations rather than cost discipline.
Working Capital Drag Lengthens Cash Cycle
ALGN's cash conversion cycle extended to 124 days in 2026Q2 from 153 days in 2024Q1, per reported figures, driven by slower receivables collection and higher inventory days, indicating reduced working capital efficiency.
The CCC improvement from 153 to 124 days over ten quarters is misleading because it remains elevated relative to the asset-light model; DSO has hovered around 100 days, while DIO rose from 53 to 88 days before settling at 53 in 2026Q2. The recent DSO of 100 days suggests that ALGN is extending payment terms to customers, possibly to support volume, which ties up cash. DPO of 29 days in 2026Q2 is low, indicating limited supplier leverage, and the net effect is that working capital consumes cash, contributing to the volatile FCF margins observed.
Minimal Debt Masks Strategic Flexibility
With D/E at 0.02 and total debt of $86.6M against $1.1B cash, ALGN's leverage is negligible, per latest balance sheet data, providing substantial capacity for strategic moves.
The balance sheet is virtually debt-free, with D/EBITDA at 1.30 in 2026Q2, up from 0.44 in 2025Q4, but still low in absolute terms. Interest coverage was 99.78 in 2025Q3, indicating that debt service is not a constraint. The low leverage suggests that ALGN could fund acquisitions or buybacks without straining its balance sheet, but the recent increase in D/EBITDA warrants monitoring, as it may indicate increased borrowing for capital deployment. However, the overall leverage profile remains conservative, supporting the 'Healthy' balance sheet signal.
Liquidity Buffer Strengthens with Cash Build
ALGN's current ratio improved to 1.40 in 2026Q2 from 1.18 in 2024Q1, while cash grew from $761M to $1.1B, per balance sheet data, indicating a stronger short-term liquidity position.
The current ratio of 1.40 and quick ratio of 1.28 suggest that ALGN can cover short-term obligations comfortably, even with inventory. The cash build of over $300M over ten quarters provides a cushion against operational volatility, which is important given the fluctuating FCF margins. However, the quick ratio of 1.28 indicates that inventory is not a major liquidity concern, but the reliance on receivables (DSO ~100 days) means that a deterioration in collections could pressure liquidity. Overall, the liquidity position appears adequate to withstand moderate stress.
Premium Valuation vs. Struggling Peers
ALGN trades at 31.16x P/E and 14.61x EV/EBITDA, versus XRAY's negative earnings and HSIC's 26.94x P/E, per peer data, reflecting a premium for its superior margins and growth stability.
ALGN's profitability metrics (ROE 2.6%, ROIC 2.9% in 2026Q2) are lower than peers like HSIC (ROE 8.4%, ROIC 7.1%) and NVST (ROE 4.1%, ROIC 4.9%), yet its valuation is higher, suggesting the market is pricing in future recovery or growth. The forward P/E of 15.61 implies that the market expects earnings to nearly double, which may be optimistic given the revenue plateau. The peer comparison highlights that ALGN's gross margin (65.1%) is far superior to XRAY's negative net margin, but its return on capital is not exceptional, indicating that the premium valuation may be justified by brand and market position rather than current returns.
Misapplied ROIC in Asset-Light Model
ROIC is often misapplied to ALGN because its asset-light model and large cash balance distort the metric; adjusted ROIC excluding cash would be higher, per reported figures, offering a clearer view of operating efficiency.
ALGN's ROIC of 2.9% in 2026Q2 appears low, but this is partly because the denominator includes a large cash balance ($1.1B) that earns minimal returns. Excluding cash, ROIC would be significantly higher, as the operating assets are primarily intangibles and working capital. Additionally, the heavy use of stock-based compensation (SBC) understates reported earnings, which depresses ROIC. Investors should adjust for SBC and excess cash to assess true operating returns. The most commonly misapplied ratio is ROIC, as it fails to capture the economics of a brand-driven, asset-light business where the primary capital is human and intellectual, not tangible.