Is Align Technology, Inc. overvalued or undervalued?

As of 17 October 2025, Align Technology, Inc. has moved from an attractive to a fair valuation grade. The company appears to be overvalued based on its current metrics, with a P/E ratio of 29, a Price to Book Value of 3.45, and an EV to EBITDA ratio of 15.24. In comparison, its peer, which has a P/E of approximately 20.46, suggests that Align is trading at a premium relative to its industry.
The company's return performance has been significantly lagging behind the S&P 500, with a year-to-date return of -37.44% compared to the S&P 500's 13.30%, and a five-year return of -61.24% against the S&P 500's 91.29%. This stark contrast reinforces the notion that Align Technology, Inc. is currently overvalued.