ALGN — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($182.16)
DCF	$676.24	+271.2%
Graham Number	$84.93	-53.4%
Reverse DCF	—	implied g: 11.0%
DDM	—	—
EV/EBITDA	$180.97	-0.7%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $483.69M

Near-term growth (yrs 1–5)(%)Rev: 5.3% / EPS: 35.6%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 14.20%

Computed WACC: 14.20%

Cost of equity (Re)14.33%(Rf 4.30% + β 1.82 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)99.14%

Debt weight (D/V)0.86%

Results

Intrinsic Value / share$321.98

Current Price$182.16

Upside / Downside+76.8%

Net Debt (used)-$980.46M

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	27.6%	31.6%	35.6%	39.6%	43.6%
7.0%	$781.06	$905.76	$1046.36	$1204.33	$1381.24
8.0%	$618.80	$716.49	$826.59	$950.25	$1088.69
9.0%	$507.76	$586.99	$676.24	$776.45	$888.60
10.0%	$427.36	$493.24	$567.41	$650.66	$743.81
11.0%	$366.72	$422.53	$485.36	$555.84	$634.66

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $5.65

Book Value / share($)Yahoo: $56.74

Results

Graham Number$84.93

Current Price$182.16

Margin of Safety-53.4%

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 14.20%

Terminal growth rate(%)

Computed WACC: 14.20%

Cost of equity (Re)14.33%(Rf 4.30% + β 1.82 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)99.14%

Debt weight (D/V)0.86%

Results

Current Price$182.16

Implied Near-term FCF Growth23.6%

Historical Revenue Growth5.3%

Historical Earnings Growth35.6%

Base FCF (TTM)$483.69M

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: —

Dividend growth rate (g)(%)

Required return (r)(%)

Results

This company does not pay a dividend. DDM is not applicable — the intrinsic value shown uses D0 = $0 unless you enter a hypothetical dividend above.

DDM Intrinsic Value / share—

Current Price$182.16

Upside / Downside—

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $851.35M

Target EV/EBITDA multipleCurrent: 14.1×

Net Debt($B)Default: -$980.46M

Results

Implied Equity Value / share$180.97

Current Price$182.16

Upside / Downside-0.7%

Implied EV$12.00B

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	-$2.98B	-$1.98B	-$980.46M	$19.54M	$1.02B
10.1x	$161.38	$147.44	$133.51	$119.57	$105.63
12.1x	$185.11	$171.17	$157.24	$143.30	$129.36
14.1x	$208.84	$194.91	$180.97	$167.03	$153.09
16.1x	$232.57	$218.64	$204.70	$190.76	$176.82
18.1x	$256.30	$242.37	$228.43	$214.49	$200.56

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