Price to Earnings (P/E)
since 2005
Calculation
Align Technology Inc., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net income (loss)1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 27, 2023 | 64.55 | = | 304.64 | ÷ | 4.72 | 4.72 | = | 361,573 | ÷ | 76,610,319 | |
| Feb 25, 2022 | 52.31 | = | 512.56 | ÷ | 9.80 | 9.80 | = | 772,020 | ÷ | 78,795,494 | |
| Feb 26, 2021 | 25.27 | = | 567.11 | ÷ | 22.44 | 22.44 | = | 1,775,888 | ÷ | 79,132,723 | |
| Feb 28, 2020 | 38.84 | = | 218.35 | ÷ | 5.62 | 5.62 | = | 442,776 | ÷ | 78,753,161 | |
| Feb 28, 2019 | 51.76 | = | 258.97 | ÷ | 5.00 | 5.00 | = | 400,235 | ÷ | 79,989,347 | |
| Feb 28, 2018 | 90.91 | = | 262.52 | ÷ | 2.89 | 2.89 | = | 231,418 | ÷ | 80,135,229 | |
| Feb 28, 2017 | 43.49 | = | 102.76 | ÷ | 2.36 | 2.36 | = | 189,682 | ÷ | 80,276,127 | |
| Feb 25, 2016 | 35.64 | = | 64.46 | ÷ | 1.81 | 1.81 | = | 144,020 | ÷ | 79,625,640 | |
| Feb 26, 2015 | 31.23 | = | 56.43 | ÷ | 1.81 | 1.81 | = | 145,832 | ÷ | 80,720,243 | |
| Feb 28, 2014 | 66.32 | = | 52.33 | ÷ | 0.79 | 0.79 | = | 64,295 | ÷ | 81,480,919 | |
| Mar 1, 2013 | 43.37 | = | 31.13 | ÷ | 0.72 | 0.72 | = | 58,691 | ÷ | 81,758,299 | |
| Feb 29, 2012 | 30.47 | = | 25.61 | ÷ | 0.84 | 0.84 | = | 66,716 | ÷ | 79,368,864 | |
| Feb 24, 2011 | 20.23 | = | 19.54 | ÷ | 0.97 | 0.97 | = | 74,253 | ÷ | 76,878,090 | |
| Feb 26, 2010 | — | = | 18.10 | ÷ | -0.42 | -0.42 | = | -31,269 | ÷ | 75,277,984 | |
| Feb 27, 2009 | 5.66 | = | 6.85 | ÷ | 1.21 | 1.21 | = | 79,987 | ÷ | 66,055,143 | |
| Feb 26, 2008 | 25.20 | = | 13.02 | ÷ | 0.52 | 0.52 | = | 35,724 | ÷ | 69,155,844 | |
| Mar 12, 2007 | — | = | 16.79 | ÷ | -0.53 | -0.53 | = | -34,963 | ÷ | 65,837,621 | |
| Mar 1, 2006 | 375.26 | = | 8.46 | ÷ | 0.02 | 0.02 | = | 1,413 | ÷ | 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 financial trajectory from 2006 to 2023 is characterized by an initial period of high volatility, followed by a sustained growth phase, and concluding with a significant valuation adjustment. The relationship between share price and earnings per share (EPS) indicates a shift from speculative pricing to growth-oriented valuation and, most recently, a period of earnings contraction.
- Early Volatility and Stabilization (2006–2010)
- The initial period was marked by inconsistent earnings, with negative EPS reported in 2007 and 2010. This volatility resulted in extreme P/E fluctuations, including a peak of 375.26 in 2006 and a low of 5.66 in 2009. During this phase, the share price remained relatively low, ranging from 6.85 to 18.10 US$, reflecting a period of instability in profitability.
- Expansion and Growth Acceleration (2011–2018)
- A consistent upward trend in both share price and EPS began in 2011. EPS grew steadily from 0.97 US$ to 2.89 US$ by 2018, while the share price experienced a parabolic increase, rising from 19.54 US$ to 262.52 US$. This period saw the P/E ratio expand significantly, peaking at 90.91 in 2018, suggesting high investor confidence and expectations for future growth.
- Earnings Peak and Valuation Compression (2019–2021)
- Between 2019 and 2021, the share price reached its historical maximum of 567.11 US$. Simultaneously, EPS experienced a dramatic surge, peaking at 22.44 US$ in 2021. This surge in earnings led to a compression of the P/E ratio to 25.27, its lowest level since 2009, indicating that the valuation became more grounded in realized earnings rather than future speculation.
- Recent Retrenchment and Ratio Expansion (2022–2023)
- The most recent data indicates a sharp decline in both share price and earnings. EPS dropped from 22.44 US$ in 2021 to 4.72 US$ in 2023. Because the earnings declined more rapidly than the share price, the P/E ratio expanded from 25.27 to 64.55. This suggests that while the market value of the company has decreased, the valuation remains high relative to the current diminished earnings capacity.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Comparison to Competitors
Align Technology Inc., P/E, 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 | 64.55 | 26.76 | 9,358,713.46 | 64.99 | 23.38 | 22.46 |
| Feb 25, 2022 | 52.31 | 29.13 | 18.13 | 59.94 | 46.56 | 26.03 |
| Feb 26, 2021 | 25.27 | 48.49 | 15.87 | 87.47 | 26.30 | 20.54 |
| Feb 28, 2020 | 38.84 | 41.83 | 15.96 | 48.72 | 28.78 | 20.48 |
| Feb 28, 2019 | 51.76 | 56.47 | 21.45 | 53.03 | 37.80 | 21.09 |
| Feb 28, 2018 | 90.91 | 220.29 | 15.44 | 70.95 | 29.96 | 20.77 |
| Feb 28, 2017 | 43.49 | 55.16 | 17.48 | 37.16 | 33.17 | 21.73 |
| Feb 25, 2016 | 35.64 | 12.83 | 12.99 | 34.24 | 40.56 | 18.18 |
| Feb 26, 2015 | 31.23 | 31.30 | 15.29 | 44.77 | 20.75 | 18.50 |
| Feb 28, 2014 | 66.32 | 23.25 | 9.95 | 22.82 | 14.99 | 12.35 |
| Mar 1, 2013 | 43.37 | 9.24 | 7.09 | 35.05 | 10.57 | 10.58 |
| Feb 29, 2012 | 30.47 | 18.67 | 8.36 | 39.05 | 13.37 | 10.78 |
| Feb 24, 2011 | 20.23 | 15.68 | 8.74 | 33.85 | 12.65 | 10.01 |
| Feb 26, 2010 | — | 14.69 | 5.53 | 54.30 | 17.11 | 9.91 |
| Feb 27, 2009 | 5.66 | 17.11 | 8.26 | 21.99 | 26.02 | 11.66 |
| Feb 26, 2008 | 25.20 | 23.82 | 12.02 | 79.87 | 20.81 | 12.85 |
| Mar 12, 2007 | — | 48.17 | 16.05 | 58.08 | 21.31 | 17.58 |
| Mar 1, 2006 | 375.26 | 20.03 | 20.66 | 36.68 | 35.12 | 24.20 |
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/E, long-term trends, comparison to sector (health care equipment & services)
| Align Technology Inc. | Health Care Equipment & Services | |
|---|---|---|
| Feb 27, 2023 | 64.55 | 1,429,718.32 |
| Feb 25, 2022 | 52.31 | 28.98 |
| Feb 26, 2021 | 25.27 | 27.23 |
| Feb 28, 2020 | 38.84 | 25.22 |
| Feb 28, 2019 | 51.76 | 28.84 |
| Feb 28, 2018 | 90.91 | 28.17 |
| Feb 28, 2017 | 43.49 | 27.54 |
| Feb 25, 2016 | 35.64 | 20.20 |
| Feb 26, 2015 | 31.23 | 21.28 |
| Feb 28, 2014 | 66.32 | 14.93 |
| Mar 1, 2013 | 43.37 | 10.51 |
| Feb 29, 2012 | 30.47 | 14.07 |
| Feb 24, 2011 | 20.23 | 12.56 |
| Feb 26, 2010 | — | 11.86 |
| Feb 27, 2009 | 5.66 | 15.75 |
| Feb 26, 2008 | 25.20 | 17.58 |
| Mar 12, 2007 | — | 22.77 |
| Mar 1, 2006 | 375.26 | 24.03 |
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/E, long-term trends, comparison to industry (health care)
| Align Technology Inc. | Health Care | |
|---|---|---|
| Feb 27, 2023 | 64.55 | 351,256.81 |
| Feb 25, 2022 | 52.31 | 21.55 |
| Feb 26, 2021 | 25.27 | 32.22 |
| Feb 28, 2020 | 38.84 | 22.09 |
| Feb 28, 2019 | 51.76 | 24.32 |
| Feb 28, 2018 | 90.91 | 33.04 |
| Feb 28, 2017 | 43.49 | 21.90 |
| Feb 25, 2016 | 35.64 | 19.53 |
| Feb 26, 2015 | 31.23 | 21.38 |
| Feb 28, 2014 | 66.32 | 18.67 |
| Mar 1, 2013 | 43.37 | 15.77 |
| Feb 29, 2012 | 30.47 | 15.79 |
| Feb 24, 2011 | 20.23 | 15.12 |
| Feb 26, 2010 | — | 11.71 |
| Feb 27, 2009 | 5.66 | 13.07 |
| Feb 26, 2008 | 25.20 | 19.29 |
| Mar 12, 2007 | — | 18.61 |
| Mar 1, 2006 | 375.26 | 21.71 |
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).