Common Stock Valuation Ratios (Price Multiples)
Quarterly Data
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
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- Income Statement
- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Equity (ROE) since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Book Value (P/BV) since 2005
- Aggregate Accruals
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Historical Valuation Ratios (Summary)
Align Technology Inc., historical price multiples (quarterly data)
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
- Price to Earnings (P/E) Ratio
- The Price to Earnings ratio exhibited considerable fluctuations over the analyzed periods. Initially, it declined sharply from 69.3 in early 2019 to a low of 8.7 by March 2020. This significant drop may reflect changes in earnings or market sentiment during that time. Subsequently, the ratio increased steadily, peaking at 98.33 in March 2021, indicating heightened market expectations or reduced earnings base. After this peak, a gradual decline followed, with some volatility, reaching 41.68 by September 2023. Overall, the P/E ratio displays cyclical behavior with marked peaks and troughs, implying varying investor confidence or earnings volatility.
- Price to Operating Profit (P/OP) Ratio
- The Price to Operating Profit ratio showed wide volatility across the periods. Starting from 57.17 in early 2019, the ratio decreased to around 31 by the end of 2019 but surged markedly throughout 2020, reaching an apex of 115.91 in December 2020. This surge contrasts with earlier and later periods, suggesting either compressed operating profits or elevated market valuations during 2020. Following this peak, the ratio experienced a downward trend through 2021 and 2022, dipping to 18.82 by September 2022, possibly reflecting improving operating profitability or valuation adjustments. However, some recovery was observed afterward, with a value of 25.87 by September 2023. The fluctuations highlight sensitivity to operating profit dynamics and market pricing.
- Price to Sales (P/S) Ratio
- The Price to Sales ratio demonstrated a general downward trend with intermittent rebounds. From a high starting point of 12.54 in March 2019, the ratio fell to 6.82 by March 2020, followed by a pronounced increase peaking at 18.15 at the end of 2020. After this peak, there was a consistent decline over 2021 and 2022, reaching lows around 3.66 in September 2022. Some fluctuation occurred afterwards, but the ratio remained relatively low, ending at 3.97 in September 2023. These movements indicate variations in market valuation relative to sales, with a notable contraction in valuation multiples over time from their earlier highs.
- Price to Book Value (P/BV) Ratio
- The Price to Book Value ratio followed a pattern similar to other valuation metrics. It started relatively high at 20.76 in early 2019, decreasing significantly to 5.76 by March 2020. A notable rebound ensued, with the ratio increasing to around 13.88 by December 2020 and peaking again at 16.53 in mid-2021. After this period, the ratio declined steadily through 2022 and 2023, reaching a low of 3.83 in September 2022 before slightly recovering to 3.98 by September 2023. This trend suggests fluctuating investor perceptions of net asset value, with valuation compression in recent periods perhaps reflecting cautious market sentiment or changes in book value composition.
Price to Earnings (P/E)
Align Technology Inc., historical P/E calculation (quarterly data)
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||
| Net income (loss) (in thousands) | |||||||||||||||||||||||||
| Earnings per share (EPS)2 | |||||||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||||||
| P/E ratio4 | |||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||
| P/E Ratio, Competitors5 | |||||||||||||||||||||||||
| Abbott Laboratories | |||||||||||||||||||||||||
| Elevance Health Inc. | |||||||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||||||
| UnitedHealth Group Inc. | |||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Data adjusted for splits and stock dividends.
2 Q3 2023 Calculation
EPS
= (Net income (loss)Q3 2023
+ Net income (loss)Q2 2023
+ Net income (loss)Q1 2023
+ Net income (loss)Q4 2022)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Align Technology Inc. Quarterly or Annual Report.
4 Q3 2023 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
The analysis of the financial metrics over the observed periods reveals several notable patterns and trends concerning the company's share price, earnings per share (EPS), and price-to-earnings (P/E) ratio.
- Share Price
-
The share price shows substantial volatility across the quarters. From the initial value near 326 US$, it dropped sharply in the second quarter of 2019 to approximately 202 US$. This was followed by recovery and growth, peaking in December 2020 at over 567 US$. The price held relatively high into 2021, reaching above 700 US$ mid-year, before declining significantly throughout 2022, bottoming at around 181 US$ in the third quarter of 2022. Early 2023 saw some recovery, though prices fluctuated and ended around 197 US$ in the third quarter of 2023. Overall, the share price demonstrated a peak during 2020-2021, followed by a marked correction in subsequent periods.
- Earnings Per Share (EPS)
-
The EPS data exhibits an unusual spike in early 2020, jumping from a range of about 4.7–5.6 US$ in 2019 to values exceeding 20 US$ in the first three quarters of 2020. Following this spike, EPS values reverted to the single-digit range starting in late 2020 and into 2023, with gradual declines observed after 2021. This significant and brief increase in EPS in 2020 suggests either an accounting anomaly or a one-time event impacting reported earnings during that period. Post-2020, EPS trends indicate a decrease, reflecting possible pressure on profitability or normalization after the elevated figures.
- Price-to-Earnings (P/E) Ratio
-
The P/E ratio varies widely, influenced by fluctuations in both share price and EPS. Initially, it starts relatively high around 69 and dips to a low near 8.7 mid-2020 coinciding with the EPS spike, reflecting high earnings relative to price. Subsequently, the ratio climbs sharply, reaching a peak above 98 in March 2021, indicative of a high market valuation relative to earnings. Moving into 2022 and 2023, the P/E ratio shows volatility, with values oscillating between approximately 27 and over 88. The ratio trends suggest periods where the market perceived shares as overvalued relative to earnings, particularly in early 2021 and mid-2023, with intermittent corrections.
In summary, the company experienced notable volatility in its stock price and valuation multiples over the reviewed quarters. The considerable but temporary EPS spike in 2020 stands out as a key event, influencing market ratios significantly. Post-2020, earnings decreased and market valuations appeared more fluctuating, with share price corrections aligning with these changes. The observed patterns indicate dynamic market conditions and underlying earnings variability affecting investor perceptions and valuation metrics.
Price to Operating Profit (P/OP)
Align Technology Inc., historical P/OP calculation (quarterly data)
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||
| Income (loss) from operations (in thousands) | |||||||||||||||||||||||||
| Operating profit per share2 | |||||||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||||||
| P/OP ratio4 | |||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||
| P/OP Ratio, Competitors5 | |||||||||||||||||||||||||
| Abbott Laboratories | |||||||||||||||||||||||||
| Elevance Health Inc. | |||||||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||||||
| UnitedHealth Group Inc. | |||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Data adjusted for splits and stock dividends.
2 Q3 2023 Calculation
Operating profit per share
= (Income (loss) from operationsQ3 2023
+ Income (loss) from operationsQ2 2023
+ Income (loss) from operationsQ1 2023
+ Income (loss) from operationsQ4 2022)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Align Technology Inc. Quarterly or Annual Report.
4 Q3 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in share price, operating profit per share, and the price-to-operating profit (P/OP) ratio over the period examined.
- Share Price
- The share price exhibited significant volatility over the analyzed quarters. Initially, there was a decline from approximately $326 in March 2019 to around $208 by March 2020, followed by a sharp increase, peaking at about $708 in June 2021. Post this peak, the share price underwent a general downward trend, reaching a low point near $181 in September 2022, before a mild recovery to around $361 in June 2023 and subsequently declining again to approximately $197 by September 2023. This pattern suggests considerable market fluctuations and changing investor sentiment over the period.
- Operating Profit per Share
- The operating profit per share showed an overall upward trend from $5.70 in March 2019 to a peak of $12.39 in December 2021. Following this peak, there was a steady decline to approximately $7.34 by June 2023, with a slight uptick to $7.63 in September 2023. The data indicates an initial improvement in profitability, which stabilized before entering a period of gradual decrease, reflecting potential challenges in maintaining operating earnings growth.
- Price-to-Operating Profit (P/OP) Ratio
- The P/OP ratio demonstrated substantial variability throughout the quarters. Starting relatively high at 57.17 in March 2019, it then decreased to ranges between 23.56 and 41.52 in 2022, indicating a more favorable valuation in relation to operating profits during that period. However, there were spikes reaching above 100 during mid-2020, coinciding with a drop in operating profit per share and a recovery in share price, suggesting a temporary overvaluation or market speculation. More recently, the ratio settled around 25.87 by September 2023, reflecting a correction toward a more balanced valuation relative to earnings.
Overall, the data reflects an environment marked by high volatility in market valuation and profitability metrics. The strong growth phase in operating profit per share ending in 2021 was accompanied by large fluctuations in share price, resulting in varying P/OP multiples. The decline in profitability after 2021 and the corresponding share price adjustments suggest challenges in sustaining earlier gains, influencing market perceptions and valuation metrics accordingly.
Price to Sales (P/S)
Align Technology Inc., historical P/S calculation (quarterly data)
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||
| Net revenues (in thousands) | |||||||||||||||||||||||||
| Sales per share2 | |||||||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||||||
| P/S ratio4 | |||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||
| P/S Ratio, Competitors5 | |||||||||||||||||||||||||
| Abbott Laboratories | |||||||||||||||||||||||||
| Elevance Health Inc. | |||||||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||||||
| UnitedHealth Group Inc. | |||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Data adjusted for splits and stock dividends.
2 Q3 2023 Calculation
Sales per share
= (Net revenuesQ3 2023
+ Net revenuesQ2 2023
+ Net revenuesQ1 2023
+ Net revenuesQ4 2022)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Align Technology Inc. Quarterly or Annual Report.
4 Q3 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price demonstrated volatility across the observed quarters. Initially, it declined from $325.88 in the first quarter of 2019 to a low near $202.35 in the second quarter of 2019. Subsequently, the price showed a strong upward momentum, peaking above $700 around the middle of 2021. Following this peak, there was a significant decrease, with the share price dropping to as low as approximately $180.93 in the third quarter of 2022. The later quarters showed a moderate recovery, fluctuating between the $197 and $361 range by the third quarter of 2023.
- Sales Per Share Trend
- Sales per share displayed a generally upward trajectory over the period analyzed. Starting at $25.98 in early 2019, this figure increased steadily, reaching a high of over $51 in early 2022, indicating growth in revenue generated on a per-share basis. After this peak, sales per share exhibited slight declines but remained relatively stable around the high $40s to $50 range through mid-2023, suggesting continued strong sales performance despite market or share price fluctuations.
- Price-to-Sales (P/S) Ratio Analysis
- The P/S ratio experienced significant fluctuations throughout the timeframe. Early 2019 saw ratios around the 7 to 12 range, dipping to lows near 5.5 in early 2022 and down to 3.66 in the third quarter of 2022. Notably, there was a pronounced spike reaching approximately 18.15 in the last quarter of 2020 and maintaining elevated levels through much of 2021, reflecting a period during which the share price rose substantially relative to sales per share. Post-2021, the ratio decreased sharply, suggesting a reduction in market valuation relative to sales, possibly due to the decline in share price while sales per share remained stable or mildly decreased.
- Overall Observations
- The data portray a company with robust sales growth per share over the analyzed period, juxtaposed against share price volatility that led to significant swings in valuation multiples. The peak market valuation period in 2020-2021 was followed by a notable correction. Despite this, the underlying sales metrics did not decline proportionally, indicating resilience in operational performance. Such divergence between share price and sales per share implies market sentiment and external factors may have influenced the share price beyond immediate sales results during the given periods.
Price to Book Value (P/BV)
Align Technology Inc., historical P/BV calculation (quarterly data)
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||
| Stockholders’ equity (in thousands) | |||||||||||||||||||||||||
| Book value per share (BVPS)2 | |||||||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||||||
| P/BV ratio4 | |||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||
| P/BV Ratio, Competitors5 | |||||||||||||||||||||||||
| Abbott Laboratories | |||||||||||||||||||||||||
| Elevance Health Inc. | |||||||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||||||
| UnitedHealth Group Inc. | |||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Data adjusted for splits and stock dividends.
2 Q3 2023 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Align Technology Inc. Quarterly or Annual Report.
4 Q3 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
The share price of the company exhibited notable volatility over the observed periods. Initially, there was a decline from $325.88 in March 2019 to $202.35 in June 2019, followed by a rebound and an upward trajectory that peaked at $708.01 by June 2021. After this peak, the share price experienced a significant downward correction, dropping to $180.93 by September 2022, before showing a partial recovery to $361.44 by June 2023 and then decreasing again to $197.44 in September 2023.
The book value per share (BVPS) showed a steady upward trend throughout the periods. Starting at $15.7 in March 2019, BVPS increased consistently to reach $49.64 by September 2023. This growth was relatively smooth and continuous, indicating an ongoing accumulation of net assets per share over time.
The price-to-book value (P/BV) ratio reflected the combined effect of fluctuations in share price relative to the steady increase in book value per share. The ratio started at a very high level of 20.76 in March 2019, indicating a strong market premium over book value. It then declined substantially to a low of 3.83 in September 2022, corresponding with the sharp decrease in share price and continuous rise in BVPS. Subsequent periods showed some recovery in the P/BV ratio, reaching levels around 6 to 7 before dropping again to below 4 in the latest quarter.
- Share Price Trend
- Volatile with a significant peak in mid-2021 and large subsequent declines, followed by partial recovery and renewed decrease.
- Book Value Per Share Trend
- Consistent and steady growth indicating gradual increase in the company's net asset base per share over the analyzed time frame.
- Price-to-Book Value Ratio Trend
- Marked by high initial multiples that declined sharply as share price decreased and book value increased, reflecting changing market valuations and potential re-rating of the stock.
Overall, the data suggest that while the underlying book value of the company has grown steadily, market perception and valuation as expressed through share price and the P/BV ratio have been significantly more volatile. This may imply investor uncertainty or changing expectations regarding the company’s future earnings potential or risk profile during the periods analyzed.