Align Technology Valuation
ALGN Stock | USD 305.10 0.36 0.12% |
At this time, the firm appears to be overvalued. Align Technology shows a prevailing Real Value of $277.06 per share. The current price of the firm is $305.1. Our model approximates the value of Align Technology from analyzing the firm fundamentals such as Current Valuation of 22.07 B, profit margin of 0.12 %, and Return On Equity of 0.12 as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor obtaining undervalued instruments and abandoning overvalued instruments since, at some point, asset prices and their ongoing real values will blend. Key fundamental drivers impacting Align Technology's valuation include:
Price Book 6.5278 | Enterprise Value 22.1 B | Enterprise Value Ebitda 28.6002 | Price Sales 6.1369 | Forward PE 36.4964 |
Overvalued
Today
Please note that Align Technology's price fluctuation is very steady at this time. Calculation of the real value of Align Technology is based on 3 months time horizon. Increasing Align Technology's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Align Technology is useful when determining the fair value of the Align stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Align Technology. Since Align Technology is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Align Stock. However, Align Technology's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. Historical | Market 305.1 | Real 277.06 | Target 270.38 | Hype 303.26 |
The real value of Align Stock, also known as its intrinsic value, is the underlying worth of Align Technology Company, which is reflected in its stock price. It is based on Align Technology's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Align Technology's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Align Technology's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Align Technology helps investors to forecast how Align stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Align Technology more accurately as focusing exclusively on Align Technology's fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Align Technology's intrinsic value based on its ongoing forecasts of Align Technology's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Align Technology's closest peers. When choosing an evaluation method for Align Technology, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Align Technology Investments |
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Align Valuation Trend
Knowing Align Technology's actual value is paramount for traders to make sound investment determinations. Align Technology's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Align Technology's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Align Technology's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Align Market Cap
Align Technology is number one stock in market capitalization category among related companies. Market capitalization of Health Care industry is presently estimated at about 43.8 Billion. Align Technology totals roughly 22.96 Billion in market capitalization claiming about 52% of equities under Health Care industry.Align Technology Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Align Technology's current stock value. Our valuation model uses many indicators to compare Align Technology value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Align Technology competition to find correlations between indicators driving Align Technology's intrinsic value. More Info.Align Technology is rated second in price to earning category among related companies. It is rated second in price to book category among related companies fabricating about 0.22 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Align Technology is roughly 4.59 . As of the 17th of April 2024, Price To Book Ratio is likely to drop to 5.51. Comparative valuation analysis is a catch-all model that can be used if you cannot value Align Technology by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Align Technology's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Align Technology's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Align Technology's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Align Technology and how it compares across the competition.
About Align Technology Valuation
The stock valuation mechanism determines the current worth of Align Technology on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Align Technology. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Align Technology based exclusively on its fundamental and basic technical indicators. By analyzing Align Technology's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Align Technology's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Align Technology. We calculate exposure to Align Technology's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Align Technology's related companies.Last Reported | Projected for Next Year | ||
Gross Profit | 2.7 B | 2.8 B | |
Pretax Profit Margin | 0.17 | 0.17 | |
Operating Profit Margin | 0.17 | 0.18 | |
Net Profit Margin | 0.12 | 0.12 | |
Gross Profit Margin | 0.70 | 0.74 |
8 Steps to conduct Align Technology's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Align Technology's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Align Technology's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Align Technology's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Align Technology's revenue streams: Identify Align Technology's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Align Technology's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Align Technology's growth potential: Evaluate Align Technology's management, business model, and growth potential.
- Determine Align Technology's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Align Technology's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Align Technology Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Align Technology does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding | 76.6 M | |
Quarterly Earnings Growth Y O Y | 2.06 | |
Forward Price Earnings | 36.4964 |
Align Technology Current Valuation Indicators
Valuation refers to the process of determining the present value of Align Technology and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Align we look at many different elements of the entity such as Align's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Align Technology's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Align Technology's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Align Technology, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Align Technology's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Align Technology's worth.When determining whether Align Technology offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Align Technology's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Align Technology Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Align Technology Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Align Technology. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in price. To learn how to invest in Align Stock, please use our How to Invest in Align Technology guide.Note that the Align Technology information on this page should be used as a complementary analysis to other Align Technology's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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When running Align Technology's price analysis, check to measure Align Technology's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Align Technology is operating at the current time. Most of Align Technology's value examination focuses on studying past and present price action to predict the probability of Align Technology's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Align Technology's price. Additionally, you may evaluate how the addition of Align Technology to your portfolios can decrease your overall portfolio volatility.
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Is Align Technology's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Align Technology. If investors know Align will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Align Technology listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 2.06 | Earnings Share 5.8 | Revenue Per Share 50.536 | Quarterly Revenue Growth 0.061 | Return On Assets 0.0682 |
The market value of Align Technology is measured differently than its book value, which is the value of Align that is recorded on the company's balance sheet. Investors also form their own opinion of Align Technology's value that differs from its market value or its book value, called intrinsic value, which is Align Technology's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Align Technology's market value can be influenced by many factors that don't directly affect Align Technology's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Align Technology's value and its price as these two are different measures arrived at by different means. Investors typically determine if Align Technology is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Align Technology's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.