Name: Align Technology Inc. (NASDAQ:ALGN) | Enterprise Value (EV)
Creator: Stock Analysis on Net

Current EV
Historical EV

Align Technology Inc., current enterprise value calculation

Current share price (P)	$197.44
No. shares of common stock outstanding	76,589,114
US$ in thousands
Common equity (market value)¹	15,121,755)
Add: Preferred stock, $0.0001 par value; none issued (per books)	—)
Total equity	15,121,755)
Add: Total debt (book value)	—)
Total equity and debt	15,121,755)
Less: Cash and cash equivalents	942,050)
Less: Marketable securities, short-term	57,534)
Enterprise value (EV)	14,122,171)

Based on: 10-K (reporting date: 2022-12-31).

¹ Common equity (market value) = Share price × No. shares of common stock outstanding
= 197.44 × 76,589,114

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Align Technology Inc., EV calculation

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Share price^1, 2	$304.64	$512.56	$567.11	$218.35	$258.97
No. shares of common stock outstanding¹	76,610,319	78,795,494	79,132,723	78,753,161	79,989,347
US$ in thousands
Common equity (market value)³	23,338,568)	40,387,418)	44,876,959)	17,195,753)	20,714,841)
Add: Preferred stock, $0.0001 par value; none issued (book value)	—)	—)	—)	—)	—)
Total equity	23,338,568)	40,387,418)	44,876,959)	17,195,753)	20,714,841)
Add: Total debt (book value)	—)	—)	—)	—)	—)
Total equity and debt	23,338,568)	40,387,418)	44,876,959)	17,195,753)	20,714,841)
Less: Cash and cash equivalents	942,050)	1,099,370)	960,843)	550,425)	636,899)
Less: Marketable securities, short-term	57,534)	71,972)	—)	318,202)	98,460)
Enterprise value (EV)	22,338,984)	39,216,076)	43,916,116)	16,327,126)	19,979,482)

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).

¹ Data adjusted for splits and stock dividends.

² Closing price as at the filing date of Align Technology Inc. Annual Report.

³ 2022 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 304.64 × 76,610,319

The valuation of the entity experienced significant volatility between 2018 and 2022, characterized by a sharp expansion in 2020 followed by a substantial contraction. The overall trend indicates a peak in market perception during the midpoint of the period, with a subsequent return toward baseline valuation levels by the end of 2022.

Market Capitalization Trends: Common equity market value declined from US$ 20.7 billion in 2018 to US$ 17.2 billion in 2019, before surging to a peak of US$ 44.9 billion in 2020. This was followed by a downward trajectory, ending at US$ 23.3 billion in 2022.
Enterprise Value (EV) Analysis: Enterprise Value mirrored the movements of market capitalization closely, rising from US$ 19.9 billion in 2018 to a maximum of US$ 43.9 billion in 2020, and subsequently decreasing to US$ 22.3 billion by December 31, 2022.
Capital Structure Observations: A consistent equivalence is observed between common equity, total equity, and total equity and debt across all reported years. This suggests a capital structure heavily weighted toward equity with negligible or non-existent long-term debt obligations.
EV and Equity Relationship: Enterprise Value remained marginally lower than the market value of equity throughout the entire five-year period. This relationship indicates that the entity consistently held cash and cash equivalents that exceeded any debt, thereby reducing the total enterprise value relative to the market capitalization.

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Align Technology Inc. (NASDAQ:ALGN)

Enterprise Value (EV)

Current Enterprise Value (EV)

Historical Enterprise Value (EV)