ALGN
Align Technology Inc
Price:  
193.83 
USD
Volume:  
859,568
United States | Health Care Equipment & Supplies

ALGN Fair Value

-27.1 %
Upside

What is the fair value of ALGN?

As of 2025-07-07, the Fair Value of Align Technology Inc (ALGN) is 141.27 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 193.83 USD, the upside of Align Technology Inc is -27.1%.

Is ALGN a good investment?

With the market price of 193.83 USD and our fair value calculation, Align Technology Inc (ALGN) is not a good investment. Investing in ALGN stocks now will result in a potential loss of 27.1%.

193.83 USD
Stock Price
141.27 USD
Fair Price
FAIR VALUE CALCULATION

ALGN Fair Value

Peter Lynch's formula is:

ALGN Fair Value
= Earnings Growth Rate x TTM EPS
ALGN Fair Value
= 25 x 5.65
ALGN Fair Value
= 141.27

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

Historical Earnings
12-202012-202112-202212-202312-20245Y Avg
Net income1,775.9772361.6445.05421.36755
YoY growth301.1%-56.5%-53.2%23.1%-5.3%41.8%

ALGN Fair Value - Peers Benchmarking

Market Cap (mil)EPS Fair Value Upside
a
West Pharmaceutical Services Inc15,9136.5139.46-37%
Cooper Companies Inc14,6572.151.78-29.3%
Lantheus Holdings Inc5,4793.791.8916%
Merit Medical Systems Inc5,3852.151.72-43.2%
Haemonetics Corp3,6093.587.2616.1%
ICU Medical Inc3,192-3.8-19.04-114.7%
DENTSPLY SIRONA Inc3,177-4.6-22.78-242.9%
Quidel Corp1,976-5.3-26.52-190.8%
Meridian Bioscience Inc1,495122.4-34.1%
Neogen Corp1,081-2.2-11.18-324.5%

ALGN Fair Value - Key Data

Market Cap (mil)14,049
P/E34.3x
Forward P/E30.9x
EPS5.65
Avg earnings growth rate41.8%
TTM earnings410

ALGN Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.