Align TechnologyXTER:AFW 89 ROE % is 11.07% as of Mar. 2026, which is 47% below its 10-year median of 21.06. GuruFocus rates XTER:AFW with a GF Score™ of 89/100 and a GF Value™ of €212.06 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 799 Medical Devices & Instruments companies, Align Technology ranks better than 76.85% on this metric.
The historical rank and industry rank for Align Technology's ROE % or its related term are showing as below:
XTER:AFW'
s ROE % Range Over the Past 10 Years
Min: 10.01 Med: 21.06 Max: 77.55
Current: 10.82
During the past 13 years, Align Technology's highest ROE % was 77.55%. The lowest was 10.01%. And the median was 21.06%.
XTER:AFW's ROE % is ranked better than 76.85% of 799
companies
in the Medical Devices & Instruments industry
Industry Median: 2.42
vs XTER:AFW: 10.82
Align Technology (XTER:AFW) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Align Technology ROE % Related Terms
Align Technology ROE % Historical Data
* Premium members only.
The historical data trend for Align Technology's ROE % 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.
For the Medical Instruments & Supplies subindustry, Align Technology's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Align Technology's ROE % distribution charts can be found below:
* The bar in red indicates where Align Technology's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Align Technology (XTER:AFW) has a ROE % of 11.07% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Align Technology and its competitors. This is 47% below median its historical median of 21.06. Over the past decade, Align Technology's ROE % has ranged from 10.01 to 77.55. According to the industry distribution chart, Align Technology ranks #185 out of 799 companies in the Medical Devices & Instruments industry, placing it in the top 23.2%.
Is Align Technology's ROE % too high?
Align Technology's current ROE % of 11.07% is 47% below median its 10-year median of 21.06. Over the past 10 years, this metric has ranged from a low of 10.01 to a high of 77.55. The Medical Devices & Instruments industry median ROE % is 2.42. Align Technology's value of 11.07% is 357.4% above this industry median. Based on the distribution chart, Align Technology ranks #185 out of 799 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 Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Align Technology's ROE % compare to SOLV and COO?
According to the Medical Devices & Instruments industry distribution chart, Align Technology ranks #185 out of 799 companies for ROE %. This places Align Technology in the top 23% of its industry — outperforming the majority of peers. The industry median ROE % is 2.42. Align Technology's value of 11.07% is 357.4% above this benchmark. Historically, Align Technology's own ROE % has ranged from 10.01 to 77.55 over the past decade. While the company's 10-year median is 21.06 vs. the industry median of 2.42, 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 ROE % for a Medical Devices & Instruments company?
The median ROE % among Medical Devices & Instruments companies is 2.42, based on 799 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Align Technology's current ROE % of 11.07% is 357.4% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Align Technology and its competitors. For the Medical Devices & Instruments industry, the median ROE % is 2.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Align Technology's current ROE % is 11.07%, which is 47% below median its own 10-year median of 21.06. 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 Significantly Undervalued. The stock's GF Value™ is €212.06, compared to a current price of €149.05 — trading 29.7% below its estimated fair value. The current ROE % is 11.07%, which is 47% below median its 10-year median of 21.06 and 357.4% above the Medical Devices & Instruments industry median of 2.42. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Align Technology (XTER:AFW), the current ROE % is 11.07% 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 29.7% below its estimated GF Value™ of €212.06.
GuruFocus considers Align Technology to be Significantly Undervalued.
Key valuation signals for XTER:AFW:
ROE %: 11.07% (47% below median its 10-year median of 21.06)
GF Value™: €212.06 vs. price of €149.05 (29.7% below fair value)
Industry Position: 357.4% above the Medical Devices & Instruments median (#185 of 799)
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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