ALGN PEG Ratio Analysis
Higher than 53% of Healthcare sector peers
Updated 2717h ago·SEC filings & market data
Key Takeaway
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.
Sector Performance
53th percentileALGN
1.38x
Sector Median
1.07x
Sector Avg
1.77x
Prior Period
0.22x(Apr 2026)
Deep Analysis
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.
Frequently Asked Questions
What does the PEG Ratio tell investors about ALGN?
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
How is the PEG Ratio calculated?
PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.
How does ALGN's PEG Ratio compare to its sector?
ALGN's PEG Ratio of 1.38x compares to a Healthcare sector median of 1.07x, placing it in the 53th percentile.
Who are ALGN's closest peers by PEG Ratio?
The closest Healthcare peers by PEG Ratio include: RHHBY (0.77x), ZBH (0.70x), DGX (1.48x), TECH (0.62x), LLY (1.65x).
Learn More About PEG Ratio
The Formula
P/E Ratio / EPS Growth Rate
Why It Matters
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
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1.38x
Sector Median
1.07x
Sector Avg
1.77x
How ALGN's PEG Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.