ALGNNEUTRAL

P/E Ratio

29.1x

Higher than 63% of Healthcare sector peers

Updated 1902h ago

Sector Performance

63th percentile

ALGN

29.1x

Sector Median

27.6x

Sector Avg

33.2x

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Deep Analysis

The P/E ratio of 29.1x means that investors are currently paying $29.10 for every $1 of Align Technology’s annual earnings per share.

This is above the healthcare sector median of 24.6x and places the stock in the 74th percentile among its sector peers, indicating a higher valuation than most comparable companies. Both the year-over-year and quarter-over-quarter changes are listed as N/A, and no trend data for the last eight quarters is available, so no directional shift can be assessed. The high relative P/E suggests a premium valuation, but the absence of trend information makes it unclear whether the multiple is expanding or contracting, creating an ambiguous risk profile. This metric neither strongly contradicts nor fully supports the NEUTRAL verdict, as the elevated level alone does not confirm overvaluation or opportunity without historical context.

Frequently Asked Questions

What does the P/E Ratio tell investors about ALGN?

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.

How is the P/E Ratio calculated?

P/E Ratio is calculated as: Price / EPS.

How does ALGN's P/E Ratio compare to its sector?

ALGN's P/E Ratio of 29.1x compares to a Healthcare sector median of 27.6x, placing it in the 63th percentile.

Who are ALGN's closest peers by P/E Ratio?

The closest Healthcare peers by P/E Ratio include: AZN (27.0x), CCLD (28.3x), ABT (28.5x), AMGN (24.7x), A (23.0x).

The Formula

Price / EPS

Why It Matters

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.

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ALGN

29.1x

Sector Median

27.6x

Sector Avg

33.2x

How ALGN's P/E Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.