Align TechnologyXTER:AFW 89 Return-on-Tangible-Equity is 12.95% as of Mar. 2026, which is 44% below its 10-year median of 22.97. GuruFocus rates XTER:AFW with a GF Score™ of 89/100 and a GF Value™ of €193.83 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 759 Medical Devices & Instruments companies, Align Technology ranks better than 73.25% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Align Technology's annualized net income for the quarter that ended in Mar. 2026 was €390 Mil. Align Technology's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €3,012 Mil. Therefore, Align Technology's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 12.95%.
The historical rank and industry rank for Align Technology's Return-on-Tangible-Equity or its related term are showing as below:
XTER:AFW'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 11.68 Med: 22.97 Max: 90.39
Current: 12.7
During the past 13 years, Align Technology's highest Return-on-Tangible-Equity was 90.39%. The lowest was 11.68%. And the median was 22.97%.
XTER:AFW's Return-on-Tangible-Equity is ranked better than 73.25% of 759
companies
in the Medical Devices & Instruments industry
Industry Median: 4.07
vs XTER:AFW: 12.70
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Align Technology Return-on-Tangible-Equity Related Terms
Align Technology Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Align Technology's Return-on-Tangible-Equity 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: Return-on-Tangible-Equity Comparison
For the Medical Instruments & Supplies subindustry, Align Technology's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Align Technology's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Align Technology's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 12.95% mean?
Align Technology (XTER:AFW) has a Return-on-Tangible-Equity of 12.95% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Align Technology and its competitors. This is 44% below median its historical median of 22.97. Over the past decade, Align Technology's Return-on-Tangible-Equity has ranged from 11.68 to 90.39. According to the industry distribution chart, Align Technology ranks #203 out of 759 companies in the Medical Devices & Instruments industry, placing it in the top 26.7%.
Is Align Technology's Return-on-Tangible-Equity too high?
Align Technology's current Return-on-Tangible-Equity of 12.95% is 44% below median its 10-year median of 22.97. Over the past 10 years, this metric has ranged from a low of 11.68 to a high of 90.39. The Medical Devices & Instruments industry median Return-on-Tangible-Equity is 4.07. Align Technology's value of 12.95% is 218.2% above this industry median. Based on the distribution chart, Align Technology ranks #203 out of 759 companies in the Medical Devices & Instruments industry, which is above the industry midpoint. 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 Return-on-Tangible-Equity compare to SOLV and COO?
According to the Medical Devices & Instruments industry distribution chart, Align Technology ranks #203 out of 759 companies for Return-on-Tangible-Equity. This puts Align Technology in the upper half of its industry. The industry median Return-on-Tangible-Equity is 4.07. Align Technology's value of 12.95% is 218.2% above this benchmark. Historically, Align Technology's own Return-on-Tangible-Equity has ranged from 11.68 to 90.39 over the past decade. While the company's 10-year median is 22.97 vs. the industry median of 4.07, 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 Return-on-Tangible-Equity for a Medical Devices & Instruments company?
The median Return-on-Tangible-Equity among Medical Devices & Instruments companies is 4.07, based on 759 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Align Technology's current Return-on-Tangible-Equity of 12.95% is 218.2% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Align Technology and its competitors. For the Medical Devices & Instruments industry, the median Return-on-Tangible-Equity is 4.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Align Technology's current Return-on-Tangible-Equity is 12.95%, which is 44% below median its own 10-year median of 22.97. 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 €193.83, compared to a current price of €149.05 — trading 23.1% below its estimated fair value. The current Return-on-Tangible-Equity is 12.95%, which is 44% below median its 10-year median of 22.97 and 218.2% above the Medical Devices & Instruments industry median of 4.07. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Align Technology (XTER:AFW), the current Return-on-Tangible-Equity is 12.95% 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 23.1% below its estimated GF Value™ of €193.83.
GuruFocus considers Align Technology to be Modestly Undervalued.
Key valuation signals for XTER:AFW:
Return-on-Tangible-Equity: 12.95% (44% below median its 10-year median of 22.97)
GF Value™: €193.83 vs. price of €149.05 (23.1% below fair value)
Industry Position: 218.2% above the Medical Devices & Instruments median (#203 of 759)
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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