Is Align Technology, Inc. overvalued or undervalued?

As of 3 October 2025, the valuation grade for Align Technology, Inc. has moved from attractive to fair. The company appears to be overvalued based on its current metrics. Key ratios include a P/E ratio of 29, a Price to Book Value of 3.45, and an EV to EBITDA of 15.24, all of which are higher than the peer average, indicating a premium valuation compared to its industry peers. For instance, a comparable company has a P/E of 20.46, suggesting that Align is trading at a significant premium.
In terms of recent performance, Align Technology has underperformed the S&P 500 across multiple time frames, with a year-to-date return of -36.61% compared to the S&P 500's 14.18%. This stark contrast reinforces the notion that the stock may be overvalued given its declining returns relative to the broader market.