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, Dr. Ing. h.c. F. Porsche AG's Probability of Financial Distress (%) is 0.03%.
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.
Dr. Ing. h.c. F. Porsche AG (FRA:P911) 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.
Dr. Ing. h.c. F. Porsche AG Probability of Financial Distress (%) Related Terms
FRA:P911 vs TSLA, GM, F: Probability of Financial Distress (%) Comparison
For the Auto Manufacturers subindustry, Dr. Ing. h.c. F. Porsche AG'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.
Dr. Ing. h.c. F. Porsche AG Probability of Financial Distress (%) vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Dr. Ing. h.c. F. Porsche AG's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Dr. Ing. h.c. F. Porsche AG's Probability of Financial Distress (%) falls into.
Dr. Ing. h.c. F. Porsche AG 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
=
-8.20
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 0.03% mean?
Dr. Ing. h.c. F. Porsche AG (FRA:P911) has a Probability of Financial Distress (%) of 0.03% as of Jun. 24, 2026.
Is Dr. Ing. h.c. F. Porsche AG's Probability of Financial Distress (%) too high?
Dr. Ing. h.c. F. Porsche AG's current Probability of Financial Distress (%) is 0.03%. Overall, Dr. Ing. h.c. F. Porsche AG has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Dr. Ing. h.c. F. Porsche AG's Probability of Financial Distress (%) compare to TSLA and GM?
Dr. Ing. h.c. F. Porsche AG's Probability of Financial Distress (%) of 0.03% can be compared against companies in the Vehicles & Parts 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 Vehicles & Parts company?
A good Probability of Financial Distress (%) depends on the Vehicles & Parts 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. Dr. Ing. h.c. F. Porsche AG's current Probability of Financial Distress (%) is 0.03%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dr. Ing. h.c. F. Porsche AG stock overvalued right now?
Based on GuruFocus' analysis, Dr. Ing. h.c. F. Porsche AG (FRA:P911) is currently considered Modestly Undervalued. The stock's GF Value™ is €59.32, compared to a current price of €47.57 — trading 19.8% below its estimated fair value. The current Probability of Financial Distress (%) is 0.03%. Dr. Ing. h.c. F. Porsche AG's overall GF Score™ is 73/100 with 13 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 Dr. Ing. h.c. F. Porsche AG (FRA:P911), the current Probability of Financial Distress (%) is 0.03% 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 Dr. Ing. h.c. F. Porsche AG (FRA:P911) Overvalued in 2026?
Based on GuruFocus' analysis, Dr. Ing. h.c. F. Porsche AG stock appears to be undervalued.
The current stock price of €47.57 is trading 19.8% below its estimated GF Value™ of €59.32.
GuruFocus considers Dr. Ing. h.c. F. Porsche AG to be Modestly Undervalued.
Key valuation signals for FRA:P911:
Probability of Financial Distress (%): 0.03%
GF Value™: €59.32 vs. price of €47.57 (19.8% below fair value)
No single metric tells the full story. See the FRA:P911 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Porsche designs, engineers, and manufactures premium cars synonymous with its racing history heritage, engineering mastery, sporty design, and driving experience. Porsche is uniquely positioned in that its brand is associated with luxury, but it produces cars on a much larger scale than its superluxury peers. Porsche sold 279,000 vehicles in 2025 at an average price of EUR 130,000. Europe, North America, mainland China including Hong Kong, and the rest of the world accounted for 34%, 31%, 15%, and 20% of volume in 2025, respectively. Ninety-two percent of revenue is generated from the sale of cars and related services, with the remainder from the captive finance arm. Porsche's equity is tightly held with Volkswagen owning 75.4% and Porsche SE (the Porsche/Piëch family) owning 12.5%.
73GF Score
Get the complete analysis for FRA:P911
Probability of Financial Distress (%) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:P911 has been successfully added to your 