Align Technology

Methodology

Align's Invisalign business produces relatively predictable recurring revenue from dental professionals, though consumer discretionary spending affects case volumes. International expansion and direct-to-consumer provide growth drivers, but increasing competition creates pricing pressure. This works reasonably during stable periods but becomes volatile when elective dental spending drops sharply during recessions.

Methodology

Align's PEG varies widely based on market perceptions of competitive threats from DIY aligners versus international growth potential. Premium pricing and technology advantages justify higher multiples during strong growth, but saturation concerns and competition compress valuations quickly. Compare to medical device companies and monitor clear aligner market share trends.

Methodology

Align doesn't pay dividends and reinvests capital into R&D, international expansion, and manufacturing capacity, making PEGY identical to PEG. Investors focus on maintaining pricing power and market share against increasing competition while expanding globally in elective orthodontics.