Is Align Technology, Inc. overvalued or undervalued?

As of 30 July 2025, the valuation grade for Align Technology, Inc. has moved from expensive to fair. The company appears to be fairly valued at this time. Key valuation ratios include a P/E ratio of 29, an EV to EBITDA of 15.24, and a Price to Book Value of 3.45. In comparison, a peer such as Align Technology, Inc. has a lower P/E of 20.46 and an EV to EBITDA of 11.41, suggesting that the company is in line with industry valuations but still on the higher end.
Despite the fair valuation, Align Technology, Inc. has significantly underperformed against the S&P 500, with a year-to-date return of -36.42% compared to the S&P 500's 12.22%. This trend continues over longer periods, indicating potential challenges ahead for the stock.