Is Align Technology, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Align Technology, Inc. has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be overvalued, as evidenced by its P/E ratio of 29, which is significantly higher than the peer average of 20.46. Additionally, the EV to EBITDA ratio stands at 15.24, while the industry average is lower, suggesting that the company may not be generating sufficient earnings relative to its valuation. The PEG ratio of 5.85 further highlights the overvaluation, as it indicates that the stock price is high relative to its expected growth.
In comparison to its peers, Align Technology, Inc. has a higher P/E ratio than the average of 20.46, and its EV to EBITDA is also elevated compared to the peer average of 11.41. The company's recent stock performance has been notably poor, with a year-to-date return of -37.44%, significantly underperforming the S&P 500's return of 13.30% during the same period. This trend reinforces the notion that Align Technology, Inc. is currently overvalued in the market.