PEG Ratio

The PEG ratio (price-to-earnings divided by expected earnings growth) of 1.38x means the stock’s price is 1.38 times its earnings growth rate, suggesting it is trading slightly above what growth alone would justify.

Compared to sector peers, this sits above the Healthcare median of 1.00x and places Align in the 55th percentile — slightly more expensive than the typical peer. The trend for the last eight quarters is not available, year-over-year change is not applicable, but quarter-over-quarter the ratio surged 527.3% from 0.22x. That massive quarterly jump indicates a rapid revaluation — either earnings growth expectations dropped sharply or the stock price rose much faster than growth estimates. With the level above the sector median and a sudden spike, the risk is that growth assumptions may be too optimistic or that the stock has become overvalued in the short term. This metric aligns with the overall NEUTRAL verdict: it does not signal a clear buy or sell but highlights that the stock’s valuation has moved from cheap to somewhat stretched.

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