Align TechnologyXTER:AFW 89 Pretax Margin % is 14.31% as of Mar. 2026, which is 27% below its 10-year median of 19.53. GuruFocus rates XTER:AFW with a GF Score™ of 89/100 and a GF Value™ of €200.25 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 818 Medical Devices & Instruments companies, Align Technology ranks better than 77.63% on this metric.
The historical rank and industry rank for Align Technology's Pretax Margin % or its related term are showing as below:
XTER:AFW'
s Pretax Margin % Range Over the Past 10 Years
Min: 14.5 Med: 19.53 Max: 25.61
Current: 14.5
XTER:AFW's Pretax Margin % is ranked better than 77.63% of 818
companies
in the Medical Devices & Instruments industry
Industry Median: 2.505
vs XTER:AFW: 14.50
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Align Technology Pretax Margin % Related Terms
Align Technology Pretax Margin % Historical Data
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The historical data trend for Align Technology's Pretax Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
XTER:AFW vs SOLV, COO, BAX: Pretax Margin % Comparison
For the Medical Instruments & Supplies subindustry, Align Technology's Pretax Margin %, along with its competitors' market caps and Pretax Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Align Technology Pretax Margin % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Align Technology's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Align Technology's Pretax Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Align Technology (XTER:AFW) has a Pretax Margin % of 14.31% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Align Technology and its competitors. This is 27% below median its historical median of 19.53. Over the past decade, Align Technology's Pretax Margin % has ranged from 14.50 to 25.61. According to the industry distribution chart, Align Technology ranks #183 out of 818 companies in the Medical Devices & Instruments industry, placing it in the top 22.4%.
Is Align Technology's Pretax Margin % too high?
Align Technology's current Pretax Margin % of 14.31% is 27% below median its 10-year median of 19.53. Over the past 10 years, this metric has ranged from a low of 14.50 to a high of 25.61. The Medical Devices & Instruments industry median Pretax Margin % is 2.51. Align Technology's value of 14.31% is 471.3% above this industry median. Based on the distribution chart, Align Technology ranks #183 out of 818 companies in the Medical Devices & Instruments industry, which is in the top quartile — a strong position relative to peers. Overall, Align Technology has a GF Score™ of 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Align Technology's Pretax Margin % compare to SOLV and COO?
According to the Medical Devices & Instruments industry distribution chart, Align Technology ranks #183 out of 818 companies for Pretax Margin %. This places Align Technology in the top 22% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 2.51. Align Technology's value of 14.31% is 471.3% above this benchmark. Historically, Align Technology's own Pretax Margin % has ranged from 14.50 to 25.61 over the past decade. While the company's 10-year median is 19.53 vs. the industry median of 2.51, Align Technology has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Medical Devices & Instruments company?
The median Pretax Margin % among Medical Devices & Instruments companies is 2.51, based on 818 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Align Technology's current Pretax Margin % of 14.31% is 471.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Align Technology and its competitors. For the Medical Devices & Instruments industry, the median Pretax Margin % is 2.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Align Technology's current Pretax Margin % is 14.31%, which is 27% below median its own 10-year median of 19.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Align Technology stock overvalued right now?
Based on GuruFocus' analysis, Align Technology (XTER:AFW) is currently considered Modestly Undervalued. The stock's GF Value™ is €200.25, compared to a current price of €149.05 — trading 25.6% below its estimated fair value. The current Pretax Margin % is 14.31%, which is 27% below median its 10-year median of 19.53 and 471.3% above the Medical Devices & Instruments industry median of 2.51. Align Technology's overall GF Score™ is 89/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Align Technology (XTER:AFW), the current Pretax Margin % is 14.31% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Align Technology (XTER:AFW) Overvalued in 2026?
Based on GuruFocus' analysis, Align Technology stock appears to be undervalued.
The current stock price of €149.05 is trading 25.6% below its estimated GF Value™ of €200.25.
GuruFocus considers Align Technology to be Modestly Undervalued.
Key valuation signals for XTER:AFW:
Pretax Margin %: 14.31% (27% below median its 10-year median of 19.53)
GF Value™: €200.25 vs. price of €149.05 (25.6% below fair value)
Industry Position: 471.3% above the Medical Devices & Instruments median (#183 of 818)
No single metric tells the full story. See the XTER:AFW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Align Technology is the leading manufacturer of clear aligners. Invisalign, its main product, was approved by the Food and Drug Administration in 1998 and has since dominated, controlling over 90% of the market. Invisalign can treat roughly 90% of all malocclusion cases (misaligned teeth), and there are over 230,000 Invisalign-trained dentists and orthodontists. In 2022, Invisalign treated over 2 million cases, or roughly 10% of all orthodontic cases for the year, and it has treated over 14 million patients since its launch. Align also sells intraoral scanners under the brand iTero, which captures digital impressions of patients' teeth and illustrates treatment plans. Over 85% of Invisalign cases are submitted by digital scans, and iTero scans make up over half of these scans.
89GF Score
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