Price to Book Value (P/BV)
since 2005
Calculation
Align Technology Inc., P/BV, long-term trends, calculation
| P/BV | = | Share price1, 2, 3 | ÷ | Book value per share1 (BVPS) | BVPS1 | = | Stockholders’ equity1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 27, 2023 | 6.48 | = | 304.64 | ÷ | 47.01 | 47.01 | = | 3,601,358 | ÷ | 76,610,319 | |
| Feb 25, 2022 | 11.15 | = | 512.56 | ÷ | 45.98 | 45.98 | = | 3,622,714 | ÷ | 78,795,494 | |
| Feb 26, 2021 | 13.88 | = | 567.11 | ÷ | 40.87 | 40.87 | = | 3,233,865 | ÷ | 79,132,723 | |
| Feb 28, 2020 | 12.77 | = | 218.35 | ÷ | 17.09 | 17.09 | = | 1,346,169 | ÷ | 78,753,161 | |
| Feb 28, 2019 | 16.53 | = | 258.97 | ÷ | 15.66 | 15.66 | = | 1,252,891 | ÷ | 79,989,347 | |
| Feb 28, 2018 | 18.29 | = | 262.52 | ÷ | 14.36 | 14.36 | = | 1,150,370 | ÷ | 80,135,229 | |
| Feb 28, 2017 | 8.29 | = | 102.76 | ÷ | 12.40 | 12.40 | = | 995,389 | ÷ | 80,276,127 | |
| Feb 25, 2016 | 6.05 | = | 64.46 | ÷ | 10.65 | 10.65 | = | 847,926 | ÷ | 79,625,640 | |
| Feb 26, 2015 | 6.05 | = | 56.43 | ÷ | 9.33 | 9.33 | = | 752,771 | ÷ | 80,720,243 | |
| Feb 28, 2014 | 6.73 | = | 52.33 | ÷ | 7.78 | 7.78 | = | 633,970 | ÷ | 81,480,919 | |
| Mar 1, 2013 | 4.38 | = | 31.13 | ÷ | 7.11 | 7.11 | = | 581,317 | ÷ | 81,758,299 | |
| Feb 29, 2012 | 4.14 | = | 25.61 | ÷ | 6.18 | 6.18 | = | 490,781 | ÷ | 79,368,864 | |
| Feb 24, 2011 | 3.98 | = | 19.54 | ÷ | 4.91 | 4.91 | = | 377,747 | ÷ | 76,878,090 | |
| Feb 26, 2010 | 4.99 | = | 18.10 | ÷ | 3.63 | 3.63 | = | 273,036 | ÷ | 75,277,984 | |
| Feb 27, 2009 | 2.07 | = | 6.85 | ÷ | 3.31 | 3.31 | = | 218,540 | ÷ | 66,055,143 | |
| Feb 26, 2008 | 5.59 | = | 13.02 | ÷ | 2.33 | 2.33 | = | 161,154 | ÷ | 69,155,844 | |
| Mar 12, 2007 | 13.23 | = | 16.79 | ÷ | 1.27 | 1.27 | = | 83,556 | ÷ | 65,837,621 | |
| Mar 1, 2006 | 5.67 | = | 8.46 | ÷ | 1.49 | 1.49 | = | 93,438 | ÷ | 62,675,855 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Align Technology Inc. Annual Report.
The valuation of the company based on the Price to Book Value (P/BV) ratio demonstrates significant volatility and a distinct pattern of expansion and contraction over the period from 2006 to 2023.
- Book Value Growth Trends
- The Book Value per Share (BVPS) exhibits a consistent and linear upward trajectory, rising from 1.49 USD in 2006 to 47.01 USD in 2023. This steady increase indicates a continuous accumulation of net assets and retained earnings over the seventeen-year period.
- P/BV Ratio Volatility and Cycle Analysis
- The P/BV ratio experienced several distinct phases. An initial period of extreme instability occurred between 2006 and 2009, characterized by a peak of 13.23 in 2007 followed by a decline to a historical low of 2.07 in 2009. A subsequent phase of gradual re-rating took place from 2010 to 2017, during which the ratio climbed steadily from 3.98 to 8.29.
- Premium Valuation and Subsequent Correction
- A period of aggressive valuation expansion is observable between 2018 and 2022. The P/BV ratio reached its peak of 18.29 in 2018 and remained elevated above 11.00 through 2022, suggesting that the market attributed a high premium to the company's assets. However, a significant contraction occurred in 2023, with the ratio falling to 6.48, returning the valuation to levels comparable to those seen in 2014 and 2015.
- Relationship Between Market Price and Asset Value
- A divergence is noted between the steady growth of the book value and the more erratic fluctuations of the share price. While the BVPS grew reliably, the share price experienced dramatic surges and corrections, most notably peaking in 2021 at 567.11 USD. This indicates that the P/BV ratio was driven more by market sentiment and growth expectations than by the underlying growth of the company's tangible net worth.
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Comparison to Competitors
Align Technology Inc., P/BV, long-term trends, comparison to competitors
| Align Technology Inc. | Abbott Laboratories | Elevance Health Inc. | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|---|
| Feb 27, 2023 | 6.48 | 5.06 | 1,553,040.70 | 7.78 | 2.24 | 5.81 |
| Feb 25, 2022 | 11.15 | 5.75 | 3.07 | 8.59 | 3.26 | 6.27 |
| Feb 26, 2021 | 13.88 | 6.65 | 2.19 | 9.53 | 2.48 | 4.83 |
| Feb 28, 2020 | 12.77 | 4.96 | 2.42 | 8.13 | 2.66 | 4.92 |
| Feb 28, 2019 | 16.53 | 4.38 | 2.82 | 8.96 | 2.31 | 4.89 |
| Feb 28, 2018 | 18.29 | 3.40 | 2.24 | 9.91 | 2.40 | 4.59 |
| Feb 28, 2017 | 8.29 | 3.76 | 1.72 | 4.73 | 2.25 | 3.98 |
| Feb 25, 2016 | 6.05 | 2.68 | 1.44 | 4.67 | 2.04 | 3.12 |
| Feb 26, 2015 | 6.05 | 3.32 | 1.62 | 5.55 | 3.27 | 3.20 |
| Feb 28, 2014 | 6.73 | 2.38 | 1.00 | 4.37 | 2.78 | 2.16 |
| Mar 1, 2013 | 4.38 | 2.06 | 0.79 | 6.43 | 2.23 | 1.88 |
| Feb 29, 2012 | 4.14 | 3.61 | 0.95 | 7.31 | 2.59 | 1.96 |
| Feb 24, 2011 | 3.98 | 3.24 | 1.06 | 6.34 | 2.68 | 1.80 |
| Feb 26, 2010 | 4.99 | 3.69 | 1.06 | 8.22 | 2.89 | 1.60 |
| Feb 27, 2009 | 2.07 | 4.78 | 0.96 | 3.55 | 5.03 | 1.67 |
| Feb 26, 2008 | 5.59 | 4.83 | 1.75 | 12.99 | 5.31 | 2.98 |
| Mar 12, 2007 | 13.23 | 5.88 | 2.02 | 7.10 | 5.78 | 3.51 |
| Mar 1, 2006 | 5.67 | 4.69 | 2.04 | 7.80 | 6.06 | 4.50 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Health Care Equipment & Services)
Align Technology Inc., P/BV, long-term trends, comparison to sector (health care equipment & services)
| Align Technology Inc. | Health Care Equipment & Services | |
|---|---|---|
| Feb 27, 2023 | 6.48 | 263,051.14 |
| Feb 25, 2022 | 11.15 | 5.01 |
| Feb 26, 2021 | 13.88 | 4.30 |
| Feb 28, 2020 | 12.77 | 4.00 |
| Feb 28, 2019 | 16.53 | 3.83 |
| Feb 28, 2018 | 18.29 | 3.44 |
| Feb 28, 2017 | 8.29 | 2.95 |
| Feb 25, 2016 | 6.05 | 2.39 |
| Feb 26, 2015 | 6.05 | 2.94 |
| Feb 28, 2014 | 6.73 | 2.12 |
| Mar 1, 2013 | 4.38 | 1.89 |
| Feb 29, 2012 | 4.14 | 2.39 |
| Feb 24, 2011 | 3.98 | 2.21 |
| Feb 26, 2010 | 4.99 | 2.31 |
| Feb 27, 2009 | 2.07 | 2.78 |
| Feb 26, 2008 | 5.59 | 3.52 |
| Mar 12, 2007 | 13.23 | 3.80 |
| Mar 1, 2006 | 5.67 | 3.90 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Health Care)
Align Technology Inc., P/BV, long-term trends, comparison to industry (health care)
| Align Technology Inc. | Health Care | |
|---|---|---|
| Feb 27, 2023 | 6.48 | 87,112.79 |
| Feb 25, 2022 | 11.15 | 5.48 |
| Feb 26, 2021 | 13.88 | 5.37 |
| Feb 28, 2020 | 12.77 | 5.14 |
| Feb 28, 2019 | 16.53 | 5.17 |
| Feb 28, 2018 | 18.29 | 4.55 |
| Feb 28, 2017 | 8.29 | 4.06 |
| Feb 25, 2016 | 6.05 | 3.62 |
| Feb 26, 2015 | 6.05 | 4.10 |
| Feb 28, 2014 | 6.73 | 3.51 |
| Mar 1, 2013 | 4.38 | 2.87 |
| Feb 29, 2012 | 4.14 | 2.51 |
| Feb 24, 2011 | 3.98 | 2.24 |
| Feb 26, 2010 | 4.99 | 2.36 |
| Feb 27, 2009 | 2.07 | 2.65 |
| Feb 26, 2008 | 5.59 | 3.45 |
| Mar 12, 2007 | 13.23 | 3.81 |
| Mar 1, 2006 | 5.67 | 3.97 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).