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ALGN, Align Technology

Medical Devices & Equipment consumer brand

Align TM Digital Platform is an end-to-end digital platform that combines software, systems and services designed to provide a seamless experience and end-to-end workflow that integrates and connects those critical to successful treatment outcomes doctors, labs, patients and consumers.

Depending on the product, our Invisalign Accessory Products are sold through a variety of channels, including online through large e-commerce websites, our doctor portal and in-store through large retailers and pharmacy stores.

Latest annual: FY2025 10-K

ALGN · Align Technology

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$4.0B

+0.9% YoY · 10% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $4.1B 5-yr avg $3.9B

Gross margin 68% 5-yr avg 70%

Operating margin 13.6% 5-yr avg 17.5%

ROIC 13% 5-yr avg 18%

Owner-earnings margin 14% 5-yr avg 16%

Free cash flow margin 14% 5-yr avg 14%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

What moves the needle: Gross margin has run about 71% and operating margin about 17% through the cycle, a wide spread between price and the cost of what it sells — whether that advantage is durable pricing power or a margin that can erode is the question the record is for. Read this kind of business on the installed base and what follows it. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has run high across the record (median 23%, above 15% in 7 of 10 years). Owner earnings agree: roughly 22% of revenue reaches owners as cash, consistently. Whether these returns reflect real pricing power or an accounting artifact is the judgment the 10-K is for.

Every line is arithmetic on the company's filings, shown in full in the sections below.

Where the money comes from

read the 10-K →

59% of revenue comes from outside the United States.

Revenue by geography, FY2025

United States41%$1.7B
Other International36%$1.5B
Switzerland23%$921M

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2016–2025

realized figures from each filing · older years to the left

2016’16	2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMMar 2026
											Income statement
$1.1B	$1.5B	$2.0B	$2.4B	$2.5B	$4.0B	$3.7B	$3.9B	$4.0B	$4.0B	$4.1B	RevenueRevenue
75%	76%	74%	72%	71%	74%	71%	70%	70%	67%	68%	Gross marginGross mgn
—	—	43%	45%	49%	43%	45%	44%	44%	44%	43%	SG&A / revenueSG&A/rev
7%	7%	7%	7%	7%	6%	8%	9%	9%	9%	9%	R&D / revenueR&D/rev
$249M	$354M	$467M	$542M	$387M	$976M	$643M	$643M	$608M	$546M	$557M	Operating incomeOp. inc.
23.1%	24.0%	23.7%	22.5%	15.7%	24.7%	17.2%	16.7%	15.2%	13.5%	13.6%	Operating marginOp. mgn
$190M	$231M	$400M	$443M	$1.8B	$772M	$362M	$445M	$421M	$410M	$430M	Net incomeNet inc.
21%	36%	13%	20%	—	24%	40%	31%	31%	30%	28%	Effective tax rateTax rate
											Cash flow & returns
$248M	$439M	$555M	$747M	$662M	$1.2B	$569M	$786M	$738M	$593M	$692M	Operating cash flowOp. cash
$24M	$38M	$55M	$79M	$94M	$109M	$126M	$142M	$145M	$237M	$255M	DepreciationDeprec.
($20M)	$111M	$29M	$137M	($1.3B)	$177M	($52M)	$44M	($2M)	($240M)	($175M)	Working capital & otherWC & other
$71M	$196M	$223M	$150M	$155M	$401M	$292M	$178M	$116M	$102M	$108M	CapexCapex
6.5%	13.3%	11.4%	6.2%	6.3%	10.1%	7.8%	4.6%	2.9%	2.5%	2.6%	Capex / revenueCapex/rev
$224M	$401M	$500M	$668M	$569M	$1.1B	$443M	$608M	$623M	$491M	$584M	Owner earningsOwner earn.
20.7%	27.2%	25.4%	27.8%	23.0%	26.9%	11.9%	15.7%	15.6%	12.2%	14.2%	Owner earnings marginOE mgn
$177M	$243M	$331M	$598M	$507M	$771M	$277M	$608M	$623M	$491M	$584M	Free cash flowFCF
16.4%	16.5%	16.9%	24.8%	20.5%	19.5%	7.4%	15.7%	15.6%	12.2%	14.2%	Free cash flow marginFCF mgn
$0	$9M	$0	$0	$421M	$8M	$12M	$0	$77M	$0	$19M	AcquisitionsAcquis.
$96M	$104M	$300M	$400M	$0	$375M	$435M	$592M	$353M	$466M	—	BuybacksBuybacks
32%	32%	66%	54%	17%	30%	15%	17%	15%	13%	13%	ROICROIC
19%	20%	32%	33%	55%	21%	10%	12%	11%	10%	10%	Return on equityROE
19%	20%	32%	33%	55%	21%	10%	12%	11%	10%	10%	Retained to equityRetained/eq
											Balance sheet
$700M	$761M	$744M	$869M	$961M	$1.1B	$942M	$937M	$1.0B	$1.1B	$1.4B	Cash & investmentsCash+inv
$247M	$324M	$439M	$550M	$658M	$897M	$860M	$903M	$996M	$1.1B	$1.1B	ReceivablesReceiv.
$27M	$32M	$56M	$112M	$139M	$230M	$339M	$297M	$254M	$226M	$215M	InventoryInvent.
$29M	$37M	$64M	$87M	$142M	$164M	$128M	$113M	$109M	$121M	$124M	Accounts payablePayables
$246M	$319M	$430M	$575M	$655M	$964M	$1.1B	$1.1B	$1.1B	$1.2B	$1.2B	Operating working capitalOper. WC
$953M	$1.2B	$1.3B	$1.6B	$1.8B	$2.5B	$2.4B	$2.4B	$2.5B	$2.6B	$2.7B	Current assetsCur. assets
$354M	$500M	$692M	$971M	$1.3B	$1.9B	$1.9B	$2.1B	$2.0B	$1.9B	$1.9B	Current liabilitiesCur. liab.
2.7×	2.3×	1.9×	1.7×	1.4×	1.3×	1.3×	1.2×	1.2×	1.4×	1.4×	Current ratioCurr. ratio
$61M	$65M	$64M	$64M	$445M	$419M	$408M	$420M	$443M	$492M	$503M	GoodwillGoodwill
$1.4B	$1.8B	$2.1B	$2.5B	$4.8B	$5.9B	$5.9B	$6.1B	$6.2B	$6.2B	$6.3B	Total assetsAssets
($700M)	($761M)	($744M)	($869M)	($961M)	($1.1B)	($942M)	($937M)	($1.0B)	($1.1B)	($1.4B)	Net debt / (cash)Net debt
$999M	$1.2B	$1.3B	$1.3B	$3.2B	$3.6B	$3.6B	$3.6B	$3.9B	$4.0B	$4.1B	Shareholders’ equityEquity
5.0%	4.0%	3.6%	3.7%	4.0%	2.9%	3.6%	4.0%	4.3%	4.6%	4.4%	Stock comp / revenueSBC/rev
											Per share
81.5M	81.8M	81.4M	80.1M	79.2M	79.7M	78.4M	76.6M	75.0M	72.6M	71.6M	Shares out (diluted)Shares
$13.25	$18.01	$24.17	$30.05	$31.20	$49.61	$47.62	$50.44	$53.33	$55.59	$57.19	Revenue / shareRev/sh
$2.33	$2.83	$4.92	$5.53	$22.41	$9.69	$4.61	$5.81	$5.62	$5.65	$6.00	EPS (diluted)EPS
$2.74	$4.90	$6.15	$8.34	$7.18	$13.35	$5.65	$7.94	$8.30	$6.76	$8.15	Owner earnings / shareOE/sh
$2.17	$2.97	$4.07	$7.46	$6.40	$9.68	$3.53	$7.94	$8.30	$6.76	$8.15	Free cash flow / shareFCF/sh
$0.87	$2.39	$2.74	$1.87	$1.96	$5.03	$3.72	$2.32	$1.54	$1.41	$1.51	Cap. spending / shareCapex/sh
$12.26	$14.11	$15.40	$16.81	$40.82	$45.47	$45.92	$47.42	$51.36	$55.78	$57.94	Book value / shareBVPS

Per-share growththe realized rate an owner's share compounded

	9-yr	5-yr
Revenue / share	+17.3%/yr	+12.2%/yr
Owner earnings / share	+10.5%/yr	−1.2%/yr
EPS	+10.4%/yr	−24.1%/yr
Capital spending / share	+5.6%/yr	−6.3%/yr
Book value / share	+18.3%/yr	+6.4%/yr

The record, charted

FY2016–2025

Each measure over its full record; the current point and the worst year marked.

Share count

73Mpeak FY2017

ROIC

13%low FY2025

Gross margin

67%low FY2025

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$491Mowner earningsvs.$410Mnet incomelow FY2016

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetainedBeyond op. cash

Each year's outlays against its operating cash: the mix, and how it drifts. The hatched cap is spending beyond that year's operating cash — financed from the balance sheet or borrowing, not operations.

FY2016FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business turned $410M of profit into $491M of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.

Reported net income$410M

Owner earnings$491M · 12% of revenue

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	$410M	$421M	$445M	$362M	$772M
Depreciation & amortizationnon-cash charge added back	+$237M	+$145M	+$142M	+$126M	+$109M
Stock-based compensationreal costnon-cash, but a real cost	+$186M	+$174M	+$154M	+$133M	+$114M
Working capital & othertiming of cash in and out, other non-cash items	−$240M	−$2M	+$44M	−$52M	+$177M
Cash from operations	$593M	$738M	$786M	$569M	$1.2B
Maintenance capital expenditurethe spending needed just to hold position and volume	−$102M	−$116M	−$178M	−$126M	−$109M
Owner earnings	$491M	$623M	$608M	$443M	$1.1B
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	—	—	—	−$166M	−$292M
Free cash flow	$491M	$623M	$608M	$277M	$771M
Owner-earnings marginowner earnings ÷ revenue	12%	16%	16%	12%	27%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $186M), owner earnings is nearer $305M.

Much of fiscal 2025's profit didn't arrive as operating cash; it sits in “working capital & other” above. That can be a real inventory or timing swing, or profit that doesn't run through operating cash at all: a heavy tax year, equity-method earnings, or investment income booked through investing. For a year like this, owner earnings understates the cash earned; the full cash-flow statement carries the rest.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? 10701.1×

Comfortable

Operating income $546M ÷ interest expense $51K

What this means
Operating profit covers interest with the kind of margin Graham wanted for a defensive holding. Necessary, not sufficient, it says solvent, not cheap.
How heavy is the debt, net of cash? +$1.4B

Net cash, debt-free

Cash $1.1B + ST investments $318M − debt $0

What this means
Cash and short-term investments exceed every dollar of debt by $1.4B, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? 129d

Long (60+ days)

DSO 100 + DIO 62 − DPO 33 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.

Is it a good business?

Return on invested capital —

Not enough data

Industry peers: median 13%

What this means
The filing data didn't include the inputs for this check.
Owner-earnings margin 21%

High through the cycle

10-yr median margin, range 12%–28%; latest $491M = operating cash $593M − maintenance capex $102M

Industry peers: median 19%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 12% of revenue this year, a 21% median across 10 years. Treating stock comp as the real expense it is (less $186M of SBC) leaves $305M.
Are earnings backed by cash? 1.45×

Cash-backed

Cash from ops $593M ÷ net income $410M

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? 95%

Returns most of it

Dividends + buybacks $466M ÷ Owner Earnings $491M

What this means
Of $491M Owner Earnings, $466M (95%) went back to shareholders, $0 dividends, $466M buybacks. Net of $186M stock comp, the real buyback was about $280M. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.
Investing or harvesting? 0.43×

Harvesting

Capex $102M ÷ depreciation $237M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 3 of 5 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Pass

Revenue ≥ $2B · $4.0B

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Miss

Current ratio ≥ 2× · 1.36×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Earnings stability Pass

A profit every year (10-yr record) · no losses

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · none paid

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth Pass

Earnings +33% over the record · +55%

What this means
At least a third more earnings than a decade ago, averaging three years at each end. Net income (not per-share), so stock splits don't distort it, buybacks and dilution show up in the share-count line instead.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $5.94/share (latest year $5.73), the averaged base the calculator's gate runs on, and book value is $56.54/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2016–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 10 of 10

What this means
Never lost money over the record, the earnings stability Graham insisted on.
Operating margin 24% → 15% (3-yr avg ends)

In the filing’s words The filing attributes gains to higher prices, but the margin in the record has not followed — the claim outruns the result here.

What this means
Through the cycle the operating margin slipped — about 24% early to 15% lately, median 17% — competition or costs are biting in.
Owner earnings growth +7%/yr

What this means
Owner earnings grew about 7% a year over the record.
Worst year 2025 · 13.5% op. margin

What this means
Stayed profitable even in its hardest year, the resilience that survives recessions.
Share count −1.3%/yr

What this means
The share count is shrinking, buybacks are quietly growing your slice of the business.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

In its own filing A competitive risk, new this year

Its FY2025 10-K names artificial intelligence as a competitive threat, in language that was not in the prior year's filing.

“In addition, new competition regulations on AI development and deployment could impose new requirements on our markets that could impact our business and financial results.”

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat, and the company is using it that way.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$2.7B

Cash & short-term investments$1.4B
Receivables$1.1B
Inventory$215M

Current liabilities$1.9B

Accounts payable$124M
Other current liabilities$1.8B

Current ratio1.39×all current assets ÷ what's due · Graham looked for 2×

Quick ratio1.28×stricter: inventory excluded

Cash ratio0.72×strictest: cash alone against what's due

Working capital$750Mthe cushion left after near-term bills

Revenue, latest quarter vs. a year ago+6.2%the freshest read on whether the business is still growing

Current ratio, recent quarters1.2× → 1.4×

Deeper floors

Tangible book value$3.5Bequity stripped of goodwill & intangibles

Net current asset value$491MGraham's net-net: current assets less all liabilities

Debt incl. operating leases$116M$116M of it operating leases

Deferred revenue$1.3Bcustomer cash collected before delivery; operating float

From the company's latest filing.

How the cash was used, 2016–2025

Over the record, the business generated $6.5B of operating cash; how management split it reads as a balanced allocator, splitting cash between the business, owners, and the balance sheet.

Reinvested$1.9B · 29%
Buybacks$3.1B · 48%
Retained (debt / cash)$1.5B · 23%

Returned to owners$3.1B
56% of the owner earnings the business produced over the span, $0 as dividends and $3.1B as buybacks.
Average price paid for buybacks—
Buybacks ran $3.1B over the span, but the filings don't tag the share count needed to deduce the average price paid.
Net change in share count−12.1%
The diluted count fell from 81M to 72M, so the buybacks outran the stock issued to staff.
Dividend record—
No dividend line was reported in the filing data over the span; the record here neither confirms nor rules out a payout.
Return on what it retained9%
Of the earnings it kept rather than paid out ($2.3B over the span), annual owner earnings (first three years vs last three) grew $199M, so each retained $1 added about 0.09 of yearly owner earnings. Buffett's test, run on owner earnings instead of market value.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Chief executive	Pay, as filed	“Actually paid”	Owner earnings
2021	Joseph Hogan	$21.6M	$76.2M	$1.1B
2022	Joseph Hogan	$18.7M	−$61.3M	$443M
2023	Joseph Hogan	$29.0M	$29.5M	$608M
2024	Joseph Hogan	$27.3M	$5.2M	$623M
2025	Joseph Hogan	$19.2M	$3.9M	$491M

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Insider ownership<1%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
CEO pay ratio610:1
What the chief earns for every dollar the median employee makes, per the 2026 proxy. A high ratio alone settles nothing; some businesses are genuinely top-heavy in scarce skill. A runaway figure is where Buffett starts asking whether the board is doing its job.
Stock-based compensation$186M
The slice of the business handed to employees in shares this year, 5% of revenue, equal to 34% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why Align Technology is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2016–2025.

2 of the 5 tests turned up something to look into; the other 3 came back clean.

Look hereIs it less profitable than it was?14.5% vs 24.4%
The owner-earnings margin averaged 24.4% early in the record and 14.5% across the last three years, and the latest year has not recovered. Ask the filing whether that is a structural drift or a cyclical trough — price, mix, cost, or a competitor — and whether it is permanent.
Look hereDid receivables and inventory outpace sales?25% → 33% of sales
Receivables and inventory grew from $275M to $1.3B while revenue grew 279%: working capital is climbing faster than sales (25% of revenue then, 33% now). That can mean customers paying slower, stock building up, or revenue pulled forward. The filing's cash-flow and receivables notes say which.

And these came back clean

Did the share count rise anyway?
Did reported profit become cash?
Are "one-time" charges a yearly habit?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

What an owner would ask, FY2025

read the 10-K →

Which reported numbers are a judgment call?
Management names Revenue recognition, Income taxes as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Medical Devices & Equipment

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
ISRGIntuitive Surgical Inc.	$10.1B	68%	30.0%	16%	29%
ZBHZimmer Biomet Holdings Inc.	$8.2B	71%	11.7%	4%	18%
EWEdwards Lifesciences Corporation	$6.1B	76%	25.7%	22%	23%
RMDResMed Inc.	$5.1B	57%	27.1%	17%	19%
DXCMDexCom Inc.	$4.7B	65%	12.1%	10%	17%
HOLXHologic	$4.1B	66%	20.6%	13%	24%
ALGNAlign Technology	$4.0B	72%	19.9%	23%	22%
XRAYDENTSPLY SIRONA Inc.	$3.7B	53%	-11.5%	-6%	9%
Group median	—	67%	20.3%	14%	21%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Align Technology has delivered.

Today’s price $

Through the cycle, Align Technology earns about $882M on its 21.9% median owner-earnings margin. This year’s 12.2% margin runs below that; the reported figure may understate a lean year. Normalize, below, values the price on that through-cycle figure rather than the latest year.

Base Normalize · through-cycle ($882M) Net of stock comp (−$182M)

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The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’21→’25−7%/yr

Owner-earnings growth · ’16→’25+11%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Owner earnings $584M on 72M shares outstanding, per the 10-Q cover, as of 2026-05-01; net cash $1.4B. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh ALGN against another business →

The owners of ALGN: the meeting and the votes →

Cite: Owner Scorecard, "Align Technology (ALGN), the owner's record," https://ownerscorecard.com/c/ALGN, data as of 2026-07-09.

Manual order: ← ALGM its page in the Manual ALGT →

Industry order: ← ALC the Medical Devices & Equipment chapter ANGO →