Probability of Financial Distress (%) measures the probability that a company will go bankrupt in the upcoming year given its current financial position. A higher ratio indicates a larger probability of bankruptcy for the company, while a lower ratio indicates a healthier fundamental. As of today, Euronet Worldwide's Probability of Financial Distress (%) is 0.05%.
Like the Altman Z-Score, the PFD measures a company's bankruptcy risk. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.
Euronet Worldwide (NAS:EEFT) Probability of Financial Distress (%) Explanation
Like the Altman Z-Score, the PFD measures a company's bankruptcy risk in the upcoming year. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.
Euronet Worldwide Probability of Financial Distress (%) Related Terms
EEFT vs STNE, NN, PAGS: Probability of Financial Distress (%) Comparison
For the Software - Infrastructure subindustry, Euronet Worldwide's Probability of Financial Distress (%), along with its competitors' market caps and Probability of Financial Distress (%) 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.
Euronet Worldwide Probability of Financial Distress (%) vs Software Industry
For the Software industry and Technology sector, Euronet Worldwide's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Euronet Worldwide's Probability of Financial Distress (%) falls into.
Euronet Worldwide Probability of Financial Distress (%) Calculation
Probability of Financial Distress (%) (PFD) was developed by John Campbell, Jens Hilscher and Jan Szilagyi in their Search of Distress Risk. It measures the probability that a company will go bankrupt within the next 12 months given its current financial position.
The Probability of Financial Distress (%) was obtained by a logit probability model based on eight explanatory variables. The logit formula to compute the probability of financial distress (LPFD) is given below:
LPFD
=
-20.12 * NIMTAAVG
+
1.60 * TLMTA
-
7.88 * EXRETAVG
+
1.55 * SIGMA
-
0.005 * RSIZE
-
2.27 * CASHMTA
+
0.070 * MB
-
0.09 * PRICE
-
8.87
=
-7.66
The Probability of Financial Distress (%) (PFD) was then obtianed by:
4. EXRETAVG = Excess Return compared to the S&P 500
EXRETAVG is the weighted excess return compared to the S&P 500 in past 12 month. Geometrically declining weights are imposed on the monthly excess return to reflect lagged information. The weight is halved each quarter.
5. SIGMA = Standard Deviation of Daily Returns
For sigma, we use the annualized standard deviation of a company's returns over the past 92 days (or 63 trading days).
What does a Probability of Financial Distress (%) of 0.05% mean?
Euronet Worldwide (EEFT) has a Probability of Financial Distress (%) of 0.05% as of Jun. 24, 2026.
Is Euronet Worldwide's Probability of Financial Distress (%) too high?
Euronet Worldwide's current Probability of Financial Distress (%) is 0.05%. Overall, Euronet Worldwide has a GF Score™ of 72/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Euronet Worldwide's Probability of Financial Distress (%) compare to STNE and NN?
Euronet Worldwide's Probability of Financial Distress (%) of 0.05% can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Probability of Financial Distress (%) for a Software company?
A good Probability of Financial Distress (%) depends on the Software industry context. However, Probability of Financial Distress (%) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Probability of Financial Distress (%) mean?
A high Probability of Financial Distress (%) can signal that a stock is expensive relative to its fundamentals. Euronet Worldwide's current Probability of Financial Distress (%) is 0.05%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Euronet Worldwide stock overvalued right now?
Based on GuruFocus' analysis, Euronet Worldwide (EEFT) is currently considered Significantly Undervalued. The stock's GF Value™ is $120.82, compared to a current price of $67.50 — trading 44.1% below its estimated fair value. The current Probability of Financial Distress (%) is 0.05%. Euronet Worldwide's overall GF Score™ is 72/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Probability of Financial Distress (%) calculated?
Probability of Financial Distress (%) is calculated from a company's financial statements. For Euronet Worldwide (EEFT), the current Probability of Financial Distress (%) is 0.05% as of Jun. 24, 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 Euronet Worldwide (EEFT) Overvalued in 2026?
Based on GuruFocus' analysis, Euronet Worldwide stock appears to be undervalued.
The current stock price of $67.50 is trading 44.1% below its estimated GF Value™ of $120.82.
GuruFocus considers Euronet Worldwide to be Significantly Undervalued.
Key valuation signals for EEFT:
Probability of Financial Distress (%): 0.05%
GF Value™: $120.82 vs. price of $67.50 (44.1% below fair value)
No single metric tells the full story. See the EEFT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Euronet Worldwide Inc is a provider of electronic financial transaction solutions. It offers payment and transaction processing and distribution solutions to financial institutions, retailers, service providers, and individual consumers. The company's product offerings include comprehensive ATM, POS, card outsourcing, card issuing, and merchant acquiring services, software solutions, money transfer services, etc. Its reportable operating segments are EFT Processing, epay, and Money Transfer. Maximum revenue is derived from its Money Transfer segment, which provides money transfer services across the world under the brand names Ria, AFEX, IME, and xe. Geographically, the company generates maximum revenue from the United States, followed by Germany, India, France, Greece, and other regions.
72GF Score
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Probability of Financial Distress (%) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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