Align TechnologyXTER:AFW 89 ROC (Joel Greenblatt) % is 56.53% as of Mar. 2026, which is 17% below its 10-year median of 68.27. GuruFocus rates XTER:AFW with a GF Score™ of 89/100 and a GF Value™ of €216.07 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 839 Medical Devices & Instruments companies, Align Technology ranks better than 88.92% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Align Technology's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 56.53%.
The historical rank and industry rank for Align Technology's ROC (Joel Greenblatt) % or its related term are showing as below:
XTER:AFW'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 44.61 Med: 68.27 Max: 159.75
Current: 47.8
During the past 13 years, Align Technology's highest ROC (Joel Greenblatt) % was 159.75%. The lowest was 44.61%. And the median was 68.27%.
XTER:AFW's ROC (Joel Greenblatt) % is ranked better than 88.92% of 839
companies
in the Medical Devices & Instruments industry
Industry Median: 3.94
vs XTER:AFW: 47.80
Align Technology's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -7.90% per year.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Align Technology ROC (Joel Greenblatt) % Related Terms
Align Technology ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Align Technology's ROC (Joel Greenblatt) % 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: ROC (Joel Greenblatt) % Comparison
For the Medical Instruments & Supplies subindustry, Align Technology's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Align Technology's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Align Technology's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.
* 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.
What does a ROC (Joel Greenblatt) % of 56.53% mean?
Align Technology (XTER:AFW) has a ROC (Joel Greenblatt) % of 56.53% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Align Technology and its competitors. This is 17% below median its historical median of 68.27. Over the past decade, Align Technology's ROC (Joel Greenblatt) % has ranged from 44.61 to 159.75. According to the industry distribution chart, Align Technology ranks #93 out of 839 companies in the Medical Devices & Instruments industry, placing it in the top 11.1%.
Is Align Technology's ROC (Joel Greenblatt) % too high?
Align Technology's current ROC (Joel Greenblatt) % of 56.53% is 17% below median its 10-year median of 68.27. Over the past 10 years, this metric has ranged from a low of 44.61 to a high of 159.75. The Medical Devices & Instruments industry median ROC (Joel Greenblatt) % is 3.94. Align Technology's value of 56.53% is 1334.8% above this industry median. Based on the distribution chart, Align Technology ranks #93 out of 839 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 ROC (Joel Greenblatt) % compare to SOLV and COO?
According to the Medical Devices & Instruments industry distribution chart, Align Technology ranks #93 out of 839 companies for ROC (Joel Greenblatt) %. This places Align Technology in the top 11% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 3.94. Align Technology's value of 56.53% is 1334.8% above this benchmark. Historically, Align Technology's own ROC (Joel Greenblatt) % has ranged from 44.61 to 159.75 over the past decade. While the company's 10-year median is 68.27 vs. the industry median of 3.94, 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 ROC (Joel Greenblatt) % for a Medical Devices & Instruments company?
The median ROC (Joel Greenblatt) % among Medical Devices & Instruments companies is 3.94, based on 839 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Align Technology's current ROC (Joel Greenblatt) % of 56.53% is 1334.8% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Align Technology and its competitors. For the Medical Devices & Instruments industry, the median ROC (Joel Greenblatt) % is 3.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Align Technology's current ROC (Joel Greenblatt) % is 56.53%, which is 17% below median its own 10-year median of 68.27. 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 €216.07, compared to a current price of €161.55 — trading 25.2% below its estimated fair value. The current ROC (Joel Greenblatt) % is 56.53%, which is 17% below median its 10-year median of 68.27 and 1334.8% above the Medical Devices & Instruments industry median of 3.94. 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 ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Align Technology (XTER:AFW), the current ROC (Joel Greenblatt) % is 56.53% 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 €161.55 is trading 25.2% below its estimated GF Value™ of €216.07.
GuruFocus considers Align Technology to be Modestly Undervalued.
Key valuation signals for XTER:AFW:
ROC (Joel Greenblatt) %: 56.53% (17% below median its 10-year median of 68.27)
GF Value™: €216.07 vs. price of €161.55 (25.2% below fair value)
Industry Position: 1334.8% above the Medical Devices & Instruments median (#93 of 839)
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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