ALGNNEUTRAL

EV/EBITDA

13.5x

Higher than 38% of Healthcare sector peers

Updated 1929h ago

Sector Performance

38th percentile

ALGN

13.5x

Sector Median

14.4x

Sector Avg

24.8x

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Deep Analysis

Align Technology's current EV/EBITDA of 13.5x means the company's enterprise value (market cap plus debt minus cash) is 13.5 times its earnings before interest, taxes, depreciation, and amortization — a measure of valuation relative to operating cash flow.

This sits well below the sector median of 19.5x, placing it in the 24th percentile among healthcare peers, indicating it is valued more cheaply than most. The metric has been perfectly stable over the past eight quarters, with a year-over-year change of +0.0% and a quarter-over-quarter change of +0.0%. A low valuation combined with a flat trend suggests limited immediate compression risk, but also no catalyst for expansion — the stock appears fairly priced with little momentum in either direction. This combination typically implies a balanced risk profile, not an aggressive opportunity or a clear warning. The stable, below-median EV/EBITDA supports the overall NEUTRAL verdict, as the metric neither flashes a compelling bargain signal nor points to overvaluation.

Frequently Asked Questions

What does the EV/EBITDA tell investors about ALGN?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

How does ALGN's EV/EBITDA compare to its sector?

ALGN's EV/EBITDA of 13.5x compares to a Healthcare sector median of 14.4x, placing it in the 38th percentile.

Who are ALGN's closest peers by EV/EBITDA?

The closest Healthcare peers by EV/EBITDA include: AMGN (14.0x), CAH (14.8x), DGX (13.6x), AZN (15.9x), BIO (17.3x).

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.