Assessing Align Technology (ALGN) Valuation After Recent Share Price Momentum

Align Technology (ALGN) has drawn investor attention after recent share price moves, with the stock up about 10% over the past month and 26% over the past 3 months, prompting closer scrutiny of its valuation.

See our latest analysis for Align Technology.

At a share price of US$185.53, Align’s short term momentum is positive, with a 1 month share price return of about 10% and a 3 month gain of roughly 26%. However, the 1 year total shareholder return is close to flat and longer term total shareholder returns over 3 and 5 years have been weak. This keeps recent moves in the context of a more mixed track record.

If Align’s recent move has you reassessing your watchlist, it could be a good moment to broaden your search with our 27 healthcare AI stocks and see what else stands out in this space.

So with Align trading at US$185.53, a value score of 1 and an implied intrinsic discount of about 17%, should you view the recent rebound as a fresh entry point or assume the market is already pricing in future growth?

Most Popular Narrative: 6.6% Undervalued

With Align Technology closing at about $185.53 versus a narrative fair value of roughly $198.67, the most followed view sees modest upside grounded in earnings and margin assumptions, not a speculative stretch.

The continued expansion of clinical indications for Invisalign (such as Invisalign First for teens/kids and palate expanders) and the increasing adoption by general practitioner dentists are broadening Align’s addressable market, positioning the company for higher long-term revenues and double-digit earnings growth as these new segments mature.

Read the complete narrative.

Curious what sits behind that confidence in higher earnings and a richer market opportunity? The narrative leans heavily on steady top line growth, firmer margins and a future earnings multiple that has to hold up over time. The full story joins those moving parts into one valuation thread.

Result: Fair Value of $198.67 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, this narrative can unwind quickly if orthodontic case starts stay weak or if a shift toward lower priced products keeps squeezing Align’s margins.

Find out about the key risks to this Align Technology narrative.

Another View: Pricing Looks Full On Earnings

That 6.6% undervaluation story bumps up against a different signal. On about a 31.7x P/E, Align trades slightly richer than both the US Medical Equipment industry at 30.5x and its peer average at 30.4x, and above a fair ratio of 27.1x. If sentiment cools, does the share price move first, or does the ratio adjust before the price?

See what the numbers say about this price — find out in our valuation breakdown.

NasdaqGS:ALGN P/E Ratio as at Feb 2026Next Steps

If this mix of optimism and caution has you on the fence, take a closer look now and weigh the upside for yourself by using our 2 key rewards.

Looking for more investment ideas?

If Align sparked your interest, do not stop here. Use the Simply Wall St screener to uncover other opportunities that could suit your style and risk tolerance.

This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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