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. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 29, which is significantly higher than its peer average of 20.46. Additionally, the EV to EBITDA ratio stands at 15.24, while the industry average is much lower, indicating a premium valuation. The PEG ratio of 5.85 also suggests that the stock may be overvalued relative to its growth prospects.
In comparison to its peers, Align Technology, Inc. is less favorable, with its EV to EBIT ratio of 18.76 compared to a peer average of 11.41. The company's recent stock performance has been notably poor, with a year-to-date return of -37.44%, starkly contrasting with the S&P 500's positive return of 13.30% during the same period. This underperformance reinforces the view that Align Technology, Inc. is currently overvalued.