Price to Sales (P/S)
since 2005
Calculation
Align Technology Inc., P/S, long-term trends, calculation
| P/S | = | Share price1, 2, 3 | ÷ | Sales per share1 | Sales per share1 | = | Net revenues1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 27, 2023 | 6.25 | = | 304.64 | ÷ | 48.75 | 48.75 | = | 3,734,635 | ÷ | 76,610,319 | |
| Feb 25, 2022 | 10.22 | = | 512.56 | ÷ | 50.16 | 50.16 | = | 3,952,584 | ÷ | 78,795,494 | |
| Feb 26, 2021 | 18.15 | = | 567.11 | ÷ | 31.24 | 31.24 | = | 2,471,941 | ÷ | 79,132,723 | |
| Feb 28, 2020 | 7.14 | = | 218.35 | ÷ | 30.56 | 30.56 | = | 2,406,796 | ÷ | 78,753,161 | |
| Feb 28, 2019 | 10.53 | = | 258.97 | ÷ | 24.58 | 24.58 | = | 1,966,492 | ÷ | 79,989,347 | |
| Feb 28, 2018 | 14.28 | = | 262.52 | ÷ | 18.39 | 18.39 | = | 1,473,413 | ÷ | 80,135,229 | |
| Feb 28, 2017 | 7.64 | = | 102.76 | ÷ | 13.45 | 13.45 | = | 1,079,874 | ÷ | 80,276,127 | |
| Feb 25, 2016 | 6.07 | = | 64.46 | ÷ | 10.62 | 10.62 | = | 845,486 | ÷ | 79,625,640 | |
| Feb 26, 2015 | 5.98 | = | 56.43 | ÷ | 9.44 | 9.44 | = | 761,653 | ÷ | 80,720,243 | |
| Feb 28, 2014 | 6.46 | = | 52.33 | ÷ | 8.10 | 8.10 | = | 660,206 | ÷ | 81,480,919 | |
| Mar 1, 2013 | 4.54 | = | 31.13 | ÷ | 6.85 | 6.85 | = | 560,041 | ÷ | 81,758,299 | |
| Feb 29, 2012 | 4.24 | = | 25.61 | ÷ | 6.04 | 6.04 | = | 479,741 | ÷ | 79,368,864 | |
| Feb 24, 2011 | 3.88 | = | 19.54 | ÷ | 5.04 | 5.04 | = | 387,126 | ÷ | 76,878,090 | |
| Feb 26, 2010 | 4.36 | = | 18.10 | ÷ | 4.15 | 4.15 | = | 312,333 | ÷ | 75,277,984 | |
| Feb 27, 2009 | 1.49 | = | 6.85 | ÷ | 4.60 | 4.60 | = | 303,976 | ÷ | 66,055,143 | |
| Feb 26, 2008 | 3.17 | = | 13.02 | ÷ | 4.11 | 4.11 | = | 284,332 | ÷ | 69,155,844 | |
| Mar 12, 2007 | 5.36 | = | 16.79 | ÷ | 3.13 | 3.13 | = | 206,354 | ÷ | 65,837,621 | |
| Mar 1, 2006 | 2.56 | = | 8.46 | ÷ | 3.30 | 3.30 | = | 207,125 | ÷ | 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 data indicates a long-term trajectory of consistent growth in sales per share, contrasted by significant volatility in share price and the resulting Price-to-Sales (P/S) ratio. While sales per share rose steadily from 3.30 USD in 2006 to 48.75 USD in 2023, the market valuation of those sales experienced several distinct cycles of expansion and contraction.
- Initial Valuation Stability (2006–2013)
- During this period, the P/S ratio remained relatively constrained, fluctuating primarily between 1.49 and 5.36. The lowest valuation occurred in 2009 at 1.49, which coincided with a share price dip to 6.85 USD, despite a concurrent increase in sales per share to 4.60 USD.
- Valuation Expansion and Volatility (2014–2021)
- A period of significant valuation expansion began in 2014, with the P/S ratio climbing from 6.46 to a historical peak of 18.15 in 2021. A notable spike occurred in 2018, where the ratio reached 14.28, driven by a rapid ascent in share price to 262.52 USD. The 2021 peak represents the highest premium paid per dollar of sales, with the share price reaching 567.11 USD against sales per share of 31.24 USD.
- Recent Valuation Correction (2022–2023)
- Since 2021, a pronounced downward correction in the P/S ratio has been observed. The ratio declined from 18.15 to 6.25 by February 2023. This contraction is primarily attributed to a decrease in share price to 304.64 USD, occurring even as sales per share reached a historical high of 48.75 USD.
The divergence between the steady upward trend in sales per share and the fluctuating P/S ratio suggests that while the underlying business growth has been consistent, investor sentiment and market valuation have been subject to high volatility, culminating in a return to 2014-2016 valuation levels by 2023.
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Comparison to Competitors
Align Technology Inc., P/S, 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 | 6.25 | 4.25 | 362,239.81 | 13.81 | 3.72 | 1.40 |
| Feb 25, 2022 | 10.22 | 4.78 | 0.81 | 17.89 | 5.57 | 1.58 |
| Feb 26, 2021 | 18.15 | 6.30 | 0.60 | 21.29 | 4.36 | 1.24 |
| Feb 28, 2020 | 7.14 | 4.83 | 0.74 | 15.01 | 4.36 | 1.18 |
| Feb 28, 2019 | 10.53 | 4.37 | 0.88 | 16.06 | 3.92 | 1.12 |
| Feb 28, 2018 | 14.28 | 3.84 | 0.67 | 14.97 | 4.06 | 1.10 |
| Feb 28, 2017 | 7.64 | 3.70 | 0.51 | 10.11 | 4.07 | 0.83 |
| Feb 25, 2016 | 6.07 | 2.78 | 0.42 | 8.46 | 5.36 | 0.68 |
| Feb 26, 2015 | 5.98 | 3.53 | 0.54 | 8.80 | 3.74 | 0.80 |
| Feb 28, 2014 | 6.46 | 2.74 | 0.35 | 6.76 | 3.13 | 0.57 |
| Mar 1, 2013 | 4.54 | 1.38 | 0.31 | 10.56 | 2.36 | 0.53 |
| Feb 29, 2012 | 4.24 | 2.27 | 0.37 | 11.00 | 2.60 | 0.55 |
| Feb 24, 2011 | 3.88 | 2.06 | 0.44 | 9.15 | 2.48 | 0.50 |
| Feb 26, 2010 | 4.36 | 2.74 | 0.43 | 12.01 | 2.54 | 0.44 |
| Feb 27, 2009 | 1.49 | 2.83 | 0.33 | 5.14 | 4.30 | 0.43 |
| Feb 26, 2008 | 3.17 | 3.31 | 0.67 | 19.21 | 4.74 | 0.81 |
| Mar 12, 2007 | 5.36 | 3.68 | 0.89 | 11.23 | 4.81 | 1.03 |
| Mar 1, 2006 | 2.56 | 3.02 | 1.14 | 15.19 | 6.30 | 1.78 |
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/S, long-term trends, comparison to sector (health care equipment & services)
| Align Technology Inc. | Health Care Equipment & Services | |
|---|---|---|
| Feb 27, 2023 | 6.25 | 100,807.66 |
| Feb 25, 2022 | 10.22 | 2.07 |
| Feb 26, 2021 | 18.15 | 1.86 |
| Feb 28, 2020 | 7.14 | 1.74 |
| Feb 28, 2019 | 10.53 | 1.69 |
| Feb 28, 2018 | 14.28 | 1.58 |
| Feb 28, 2017 | 7.64 | 1.30 |
| Feb 25, 2016 | 6.07 | 1.17 |
| Feb 26, 2015 | 5.98 | 1.23 |
| Feb 28, 2014 | 6.46 | 0.95 |
| Mar 1, 2013 | 4.54 | 0.85 |
| Feb 29, 2012 | 4.24 | 1.04 |
| Feb 24, 2011 | 3.88 | 0.96 |
| Feb 26, 2010 | 4.36 | 1.02 |
| Feb 27, 2009 | 1.49 | 1.08 |
| Feb 26, 2008 | 3.17 | 1.48 |
| Mar 12, 2007 | 5.36 | 1.64 |
| Mar 1, 2006 | 2.56 | 2.17 |
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/S, long-term trends, comparison to industry (health care)
| Align Technology Inc. | Health Care | |
|---|---|---|
| Feb 27, 2023 | 6.25 | 51,413.66 |
| Feb 25, 2022 | 10.22 | 3.28 |
| Feb 26, 2021 | 18.15 | 3.31 |
| Feb 28, 2020 | 7.14 | 3.21 |
| Feb 28, 2019 | 10.53 | 3.07 |
| Feb 28, 2018 | 14.28 | 3.06 |
| Feb 28, 2017 | 7.64 | 2.80 |
| Feb 25, 2016 | 6.07 | 2.72 |
| Feb 26, 2015 | 5.98 | 3.08 |
| Feb 28, 2014 | 6.46 | 2.81 |
| Mar 1, 2013 | 4.54 | 2.20 |
| Feb 29, 2012 | 4.24 | 1.90 |
| Feb 24, 2011 | 3.88 | 1.80 |
| Feb 26, 2010 | 4.36 | 2.08 |
| Feb 27, 2009 | 1.49 | 1.70 |
| Feb 26, 2008 | 3.17 | 2.42 |
| Mar 12, 2007 | 5.36 | 2.85 |
| Mar 1, 2006 | 2.56 | 3.17 |
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).